Frontier Communications 2014 Annual Report Download - page 86

expenses”, of $16 million, $14 million and $16 million, for the years ended December 31, 2014, 2013
and 2012, respectively, has been recorded in connection with these grants.
Stock Options
The following summary presents information regarding outstanding stock options as of
December 31, 2014 and changes with regard to options under the EIPs:
Shares
Subject to
Option
Weighted
Average
Option Price
Per Share
Weighted
Average
Remaining
Life in Years
Aggregate
Intrinsic
Value
Balance at January 1, 2012 . . . . . . . . . . . . . . . . . . . . . . 895,000 $ 9.94 1.3 $—
Options granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $ —
Options exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $ —
Options canceled, forfeited or lapsed . . . . . . . . . . . (355,000) $ 8.35
Balance at December 31, 2012 . . . . . . . . . . . . . . . . . . . 540,000 $10.99 0.9 $—
Options granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $ —
Options exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $ —
Options canceled, forfeited or lapsed . . . . . . . . . . . (457,000) $10.59
Balance at December 31, 2013 . . . . . . . . . . . . . . . . . . . 83,000 $13.23 1.8 $—
Options granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $ —
Options exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $ —
Options canceled, forfeited or lapsed . . . . . . . . . . . — $ —
Balance at December 31, 2014 . . . . . . . . . . . . . . . . . . . 83,000 $13.23 0.8 $—
The number of options exercisable at December 31, 2014, 2013 and 2012 were 83,000, 83,000
and 540,000, with a weighted average exercise price of $13.23, $13.23 and $10.99, respectively.
There were no stock options granted or exercised during 2014, 2013 and 2012. There is no
remaining unrecognized compensation cost associated with unvested stock options at December 31,
2014.
Non-Employee Directors’ Compensation Plans
Prior to October 1, 2010, non-employee directors received stock options upon joining the Board of
Directors. These options were awarded under the Directors’ Equity Plan commencing May 25, 2006.
Prior thereto, these options were awarded under the 2000 EIP. Options awarded to directors under the
2000 EIP are included in the above tables.
Prior to October 1, 2013, each non-employee director was entitled to receive an annual retainer of
(1) $75,000 in cash, which he or she had the right to elect to receive in the form of stock units, and (2)
$75,000 in the form of stock units. In addition, the Lead Director, the chair of the Audit Committee and
the chair of the Compensation Committee each received an annual stipend of $20,000, the chair of the
Nominating and Corporate Governance Committee received an annual stipend of $10,000 and the
chair of the Retirement Plan Committee received an annual stipend of $7,500.
Beginning October 1, 2013, we revised our non-employee director compensation program in
accordance with best practices. Each non-employee director is now entitled to receive an annual
retainer of (1) $90,000 in cash, which he or she has the right to elect to receive in the form of stock
units, as described below, and (2) $90,000 in the form of stock units, in each case payable in advance
in quarterly installments on the first business day of each quarter. In addition, the Lead Director and the
chair of the Audit Committee each receives an additional annual cash stipend of $25,000, the chair of
the Compensation Committee receives an additional annual cash stipend of $20,000, the chair of the
Nominating and Corporate Governance Committee receives an additional annual cash stipend of
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements