MetLife 2010 Annual Report Download - page 222

under Section 422A of the Code or are non-qualified. By December 31, 2009 all awards under the 2000 Stock Plan had either vested or been
forfeited. No awards were made under the 2000 Stock Plan in 2010.
Under the MetLife, Inc. 2005 Stock and Incentive Compensation Plan (the “2005 Stock Plan”), awards granted to employees and agents
may be in the form of Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock Units, Performance Shares or
Performance Share Units, Cash-Based Awards and Stock-Based Awards (each as defined in the 2005 Stock Plan with reference to MetLife,
Inc. common stock).
The aggregate number of shares authorized for issuance under the 2005 Stock Plan is 68,000,000, plus those shares available but not
utilized under the 2000 Stock Plan and those shares utilized under the 2000 Stock Plan that are recovered due to forfeiture of Stock Options.
Each share issued under the 2005 Stock Plan in connection with a Stock Option or Stock Appreciation Right reduces the number of shares
remaining for issuance under that plan by one, and each share issued under the 2005 Stock Plan in connection with awards other than Stock
Options or Stock Appreciation Rights reduces the number of shares remaining for issuance under that plan by 1.179 shares. At December 31,
2010, the aggregate number of shares remaining available for issuance pursuant to the 2005 Stock Plan was 40,477,451. Stock Option
exercises and other awards settled in shares are satisfied through the issuance of shares held in treasury by the Company or by the issuance
of new shares.
Compensation expense related to awards under the 2005 Stock Plan is recognized based on the number of awards expected to vest,
which represents the awards granted less expected forfeitures over the life of the award, as estimated at the date of grant. Unless a material
deviation from the assumed forfeiture rate is observed during the term in which the awards are expensed, any adjustment necessary to reflect
differences in actual experience is recognized in the period the award becomes payable or exercisable.
Compensation expense related to awards under the 2005 Stock Plan is principally related to the issuance of Stock Options, Performance
Shares and Restricted Stock Units. The majority of the awards granted each year under the 2005 Stock Plan are made in the first quarter of
each year.
Description of Plans for Directors — General Terms
The MetLife, Inc. 2000 Directors Stock Plan, as amended (the “2000 Directors Stock Plan”) authorized the granting of awards in the form of
MetLife, Inc. common stock, non-qualified Stock Options, or a combination of the foregoing to non-management Directors of MetLife, Inc. As
of December 31, 2009, all awards under the 2000 Directors Stock Plan had either vested or been forfeited. No awards were made under the
2000 Directors Stock Plan in 2010.
Under the MetLife, Inc. 2005 Non-Management Director Stock Compensation Plan (the “2005 Directors Stock Plan”), awards granted may
be in the form of non-qualified Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock Units, or Stock-Based Awards
(each as defined in the 2005 Directors Stock Plan with reference to MetLife, Inc. common stock) to non-management Directors of MetLife,
Inc. The number of shares authorized for issuance under the 2005 Directors Stock Plan is 2,000,000. There were no shares carried forward
from the 2000 Directors Stock Plan to the 2005 Directors Stock Plan. At December 31, 2010, the aggregate number of shares remaining
available for issuance pursuant to the 2005 Directors Stock Plan was 1,808,114. Stock Option exercises and other awards settled in shares
are satisfied through the issuance of shares held in treasury by the Company or by the issuance of new shares.
Compensation expense related to awards under the 2005 Directors Plan is recognized based on the number of shares awarded. The
Stock-Based Awards granted under the 2005 Directors Plan have vested immediately. The majority of the awards granted each year under the
2005 Directors Stock Plan are made in the second quarter of each year.
Compensation Expense Related to Stock-Based Compensation
The components of compensation expense related to stock-based compensation, excluding the insignificant compensation expense
related to the 2005 Directors Stock Plan, is as follows:
2010 2009 2008
Years Ended
December 31,
(In millions)
StockOptions ....................................................... $45 $55 $ 51
PerformanceShares(1).................................................. 29 11 70
RestrictedStockUnits .................................................. 10 3 2
TotalcompensationexpensesrelatedtotheIncentivePlans.......................... $84 $69 $123
Incometaxbenefits.................................................... $29 $24 $ 43
(1) Performance Shares expected to vest and the related compensation expenses may be further adjusted by the performance factor most
likely to be achieved, as estimated by management, at the end of the performance period.
The following table presents the total unrecognized compensation expense related to stock-based compensation and the expected
weighted average period over which these expenses will be recognized at:
Expense Weighted Average Period
December 31, 2010
(In millions) (Years)
StockOptions ................................................. $39 1.73
PerformanceShares............................................. $30 1.74
RestrictedStockUnits............................................ $14 1.87
F-133MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)