Morgan Stanley 2010 Annual Report Download - page 228

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
may be canceled in certain limited situations, including termination for cause during the relevant restriction
period. Recipients of deferred stock awards generally have voting rights and receive dividend equivalents.
The following table sets forth activity relating to the Company’s vested and unvested RSUs (share data in
millions):
2010
Number of
Shares
Weighted Average
Grant Date
Fair Value
RSUs at beginning of period ............................................ 100 $40.88
Granted ............................................................ 49 28.95
Conversions to common stock .......................................... (33) 53.95
Canceled ........................................................... (7) 30.48
RSUs at end of period(1) .............................................. 109 $32.10
(1) At December 31, 2010, approximately 99 million RSUs with a weighted average grant date fair value of $32.62 were vested or expected
to vest.
The weighted average price for RSUs granted during 2009, fiscal 2008 and the one month ended December 31,
2008 was $26.30, $48.71 and $16.81, respectively. At December 31, 2010, the weighted average remaining term
until delivery for the Company’s outstanding RSUs was approximately 1.5 years.
At December 31, 2010, the intrinsic value of outstanding RSUs was $2,979 million.
The total fair market value of RSUs converted to common stock during 2010, 2009, fiscal 2008 and the one
month ended December 31, 2008 was $971 million, $151 million, $3,209 million and $8 million, respectively.
The increased value of RSUs converting to common stock in fiscal 2008 compared with other fiscal years reflects
the impact of a modification in fiscal 2008 to accelerate the conversion of certain RSUs. Additional
compensation cost recognized as a result of this modification was not material.
The following table sets forth activity relating to the Company’s unvested RSUs (share data in millions):
2010
Number of
Shares
Weighted Average
Grant Date
Fair Value
Unvested RSUs at beginning of period .................................... 62 $37.78
Granted ............................................................ 49 28.95
Vested ............................................................. (28) 43.75
Canceled ........................................................... (7) 30.34
Unvested RSUs at end of period(1) ...................................... 76 $30.29
(1) Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligibility
requirements. At December 31, 2010, approximately 66 million unvested RSUs with a weighted average grant date fair value of $30.81
were expected to vest.
Stock Option Awards. The Company has granted stock option awards pursuant to several equity-based
compensation plans. The plans provide for the deferral of a portion of certain key employees’ discretionary
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