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55Manpower Annual Report 2008 Notes to Consolidated Financial Statements
During 2008, 2007 and 2006, we recognized $2.8, $2.7 and $2.4, respectively, of expense, related to restricted stock
awards. As of December 31, 2008, there was approximately $6.1 of total unrecognized compensation cost related to
unvested restricted stock, which we expect to recognize over a weighted-average period of approximately 2.9 years.
PERFORMANCE SHARE UNITS
Our 2003 Plan allows us to grant performance share units. Vesting of units occurs at the end of the performance period,
generally three years, except in the case of death, disability or termination of employment, and the units are settled in shares
of our common stock. A payout multiple is applied to the units awarded based on the performance criteria determined by the
Executive Compensation Committee of the Board of Directors at the time of grant. Holders of performance share units do not
receive dividends during the performance period. Accordingly, the fair value of these units is the quoted market value of our
stock on the date of the grant.
In February 2006, 2007 and 2008, we granted performance share units with a performance criteria of average Operating
Profit Margin over the three-year performance period of 2006-2008, 2007-2009 and 2008-2010, respectively.
A summary of the performance share unit activity, at the Target Award level, for each of the performance periods is as
follows:
Share Units for Each Outstanding Grant
2006-2008 2007-2009 2008-2010
Outstanding, January 1, 2006 — — —
Granted 120,500 — —
Forfeited (17,500) — —
Outstanding, December 31, 2006 103,000 — —
Granted — 118,000 —
Forfeited — — —
Outstanding, December 31, 2007 103,000 118,000 —
Granted — — 140,000
Forfeited — (5,000) (2,000)
Outstanding, December 31, 2008 103,000 113,000 138,000
In the event the performance criteria exceeds the target performance level, an additional number of shares, up to the
Outstanding Award level, may be granted. In the event the performance criteria falls below the target performance level, a
reduced number of shares, as low as the Threshold Award level, may be granted. If the average Operating Profit Margin falls
below the threshold performance level, no shares will be granted.
The Threshold, Target and Outstanding Award levels for each outstanding grant, adjusted for forfeitures, are as follows:
2006-2008 2007-2009 2008-2010
Threshold Award 25,750 28,250 34,500
Target Award 103,000 113,000 138,000
Outstanding Award 180,250 197,750 241,500
We recognize and adjust compensation expense based on the likelihood of the performance criteria specified in the award
being achieved. The compensation expense is recognized over the performance period and is recorded in Selling and
Administrative Expenses. The average Operating Profit Margin for the 2006-2008 performance period reached the
outstanding performance level, and the units will be settled for 180,250 shares of common stock during the first quarter of
2009. We currently expect that the average Operating Profit Margin for the 2007-2009 performance period will approximate
the threshold performance level and that the average Operating Profit Margin for the 2008-2010 performance period will not
meet the threshold performance level. We have recognized a total compensation expense of $1.2, $5.8 and $3.4, in 2008,
2007 and 2006, respectively, related to the performance share units.