ManpowerGroup 2009 Annual Report Download - page 58

Notes To Consolidated Financial Statements
in millions, except share and per share data
56 Manpower 2009 Annual Report Notes to Consolidated Financial Statements
A summary of restricted stock activity is as follows:
Shares (000)
Wtd. Avg.
Price Per Share
Wtd. Avg.
Remaining
Contractual
Term (years)
Aggregate
Intrinsic Value
Unvested, January 1, 2007 205 $ 44 1.8
Granted 26 83
Vested (12) 51
Forfeited (4) 53
Unvested, December 31, 2007 215 $ 49 2.2
Granted 66 $ 57
Vested (89) 42
Unvested, December 31, 2008 192 $ 55 2.7
Granted 197 $ 31
Vested (15) 34
Forfeited (5) 45
Unvested, December 31, 2009 369 $ 43 1.6 $ 20
During 2009, 2008 and 2007, we recognized $5.5, $2.8 and $2.7, respectively, of expense related to restricted stock awards.
As of December 31, 2009, there was approximately $6.5 of total unrecognized compensation cost related to unvested
restricted stock, which we expect to recognize over a weighted-average period of approximately 2.1 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 and Human Resources Committee of the Board of Directors at the time of grant.
In February 2006, 2007 and 2008, we granted performance share units with a performance criteria of average Operating
Profi t Margin over the three-year performance period of 2006-2008, 2007-2009 and 2008-2010, respectively. We did not
grant any performance share units in 2009.
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 Profi t 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:
2007-2009(a) 2008-2010(b)
Threshold Award 28,250 34,500
Target Award 113,000 138,000
Outstanding Award 197,750 241,500
(a) 118,000 performance share units were granted in 2007 at the Target Award level for the 2007-2009 performance period, of which 5,000 units have been forfeited.
(b) 140,000 performance share units were granted in 2008 at the Target Award level for the 2008-2010 performance period, of which 2,000 units have been forfeited.
We recognize and adjust compensation expense based on the likelihood of the performance criteria specifi ed 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 Profi t Margin for the 2006-2008 performance period reached the
outstanding performance level, and the units were settled for 180,250 shares of common stock during the fi rst quarter of
2009. The average Operating Profi t Margin for the 2007-2009 performance period did not meet the threshold performance
level, and therefore, no shares will be granted. We currently expect that the average Operating Profi t Margin for the 2008-
2010 performance period will not meet the threshold performance level. We have recognized a total compensation benefi t of
$1.5 for 2009 and total compensation expense of $1.2 and $5.8 in 2008 and 2007, respectively, related to the performance
share units.