Goldman Sachs 2001 Annual Report Download - page 66

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page 64
GOLDMAN SACHS ANNUAL REPORT 2001
Noncash compensation expense, net of forfeitures, was
$789 million, $1.35 billion and $2.32 billion for the years
ended November 2001, November 2000 and November 1999,
respectively.
Stock Options
Stock options granted to employees will generally become exer-
cisable either in installments on or about the third, fourth and
fifth anniversaries of the date of grant or entirely on or about the
third anniversary of the date of grant, if the grantee has satisfied
certain conditions and the grantee’s employment with the firm
has not been terminated, with certain exceptions for termina-
tions of employment due to death, retirement, extended absence
or a change in control. Once service requirements have been
met, these options will generally remain exercisable, subject to
satisfaction of certain conditions, until the tenth anniversary of
the date of grant. Pursuant to APB No. 25, compensation
expense was not recognized for those options that had no intrin-
sic value on the date of grant. The dilutive effect of these options
is included in diluted common shares outstanding in accordance
with SFAS No. 128.
The activity related to these restricted stock units is set forth below:
RESTRICTED STOCK UNITS OUTSTANDING
NO FUTURE FUTURE
SERVICE SERVICE
REQUIRED REQUIRED
Outstanding, November 1998 ——
Granted 36,127,314 40,780,999
Forfeited (355,177) (436,518)
Delivered (68,214) —
Outstanding, November 1999 35,703,923 40,344,481
Granted(1) 6,401,796 10,900,941
Forfeited (1,189,406) (2,752,278)
Delivered (9,571,298) —
Vested 2,157,204 (2,157,204)
Outstanding, November 2000 33,502,219 46,335,940
Granted 116,968 1,638,536
Forfeited (975,713) (3,065,731)
Delivered (10,253,224) —
Vested 3,239,683 (3,239,683)
Outstanding, November 2001 25,629,933 41,669,062
(1) Includes restricted stock units granted in connection with the combination with SLK and restricted stock units granted to employees, subsequent to year end, as part of
year-end compensation.