Citibank 2015 Annual Report Download - page 175

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Information with respect to stock option activity under Citigroup’s stock option programs follows:
2015 2014 2013
Options
Weighted-
average
exercise
price
Intrinsic
value
per share Options
Weighted-
average
exercise
price
Intrinsic
value
per share Options
Weighted-
average
exercise
price
Intrinsic
value
per share
Outstanding, beginning of period 26,514,119 $ 48.00 $ 6.11 31,508,106 $ 50.72 $ 1.39 35,020,397 $ 51.20 $ —
Canceled (7,901) 40.80 — (28,257) 40.80 — (50,914) 212.35 —
Expired (1,646,581) 40.85 — (602,093) 242.43 — (86,964) 528.40 —
Exercised (18,203,048) 41.39 13.03 (4,363,637) 40.82 11.37 (3,374,413) 40.81 9.54
Outstanding, end of period 6,656,588 $67.92 $ — 26,514,119 $ 48.00 $ 6.11 31,508,106 $ 50.72 $1.39
Exercisable, end of period 6,656,588 26,514,119 30,662,588
The following table summarizes information about stock options outstanding under Citigroup’s stock option programs at December 31, 2015:
Options outstanding Options exercisable
Range of exercise prices
Number
outstanding
Weighted-average
contractual life
remaining
Weighted-average
exercise price
Number
exercisable
Weighted-average
exercise price
$39.00—$49.99 5,763,424 1.0 year $ 48.16 5,763,424 $ 48.16
$50.00—$99.99 66,660 5.4 years 56.25 66,660 56.25
$100.00—$199.99 502,416 3.0 years 147.13 502,416 147.13
$200.00—$299.99 124,088 2.1 years 240.28 124,088 240.28
$300.00—$399.99 200,000 2.1 years 335.50 200,000 335.50
Total at December 31, 2015 6,656,588 1.3 years $ 67.92 6,656,588 $ 67.92
Other Variable Incentive Compensation
Citigroup has various incentive plans globally that are used to motivate and
reward performance primarily in the areas of sales, operational excellence
and customer satisfaction. Participation in these plans is generally limited to
employees who are not eligible for discretionary annual incentive awards.
Summary
Except for awards subject to variable accounting, the total expense
recognized for stock awards represents the grant date fair value of such
awards, which is generally recognized as a charge to income ratably over the
vesting period, other than for awards to retirement-eligible employees and
immediately vested awards. Whenever awards are made or are expected to be
made to retirement-eligible employees, the charge to income is accelerated
based on when the applicable conditions to retirement eligibility were or will
be met. If the employee is retirement eligible on the grant date, or the award
is vested at grant date, the entire expense is recognized in the year prior
to grant.
Recipients of Citigroup stock awards generally do not have any
stockholder rights until shares are delivered upon vesting or exercise, or after
the expiration of applicable required holding periods. Recipients of restricted
or deferred stock awards and stock unit awards, however, may be entitled to
receive dividends or dividend-equivalent payments during the vesting period.
Recipients of restricted stock awards generally are entitled to vote the shares
in their award during the vesting period. Once a stock award vests, the shares
are freely transferable, unless they are subject to a restriction on sale or
transfer for a specified period.
All equity awards granted since April 19, 2005, have been made pursuant
to stockholder-approved stock incentive plans that are administered by the
Personnel and Compensation Committee of the Citigroup Board of Directors,
which is composed entirely of independent non-employee directors.
At December 31, 2015, approximately 54.4 million shares of Citigroup
common stock were authorized and available for grant under Citigroup’s
2014 Stock Incentive Plan, the only plan from which equity awards are
currently granted.
The 2014 Stock Incentive Plan and predecessor plans permit the use of
treasury stock or newly issued shares in connection with awards granted
under the plans. Newly issued shares were distributed to settle the vesting
of the majority of annual deferred stock awards in 2012 to 2015. Treasury
shares were used to settle vestings in the first quarter of 2016. The use of
treasury stock or newly issued shares to settle stock awards does not affect the
compensation expense recorded in the Consolidated Statement of Income for
equity awards.