PNC Bank 2002 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 of the 2002 PNC Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 117

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117

96
Components Of ESOP Shares
As of or for the year ended December 31
In thousands 2002 2001
Unallocated
Allocated 4,008 4,134
Released for allocation 364
Retired (490)
Total 4,008 4,008
Compensation expense related to the portion of contributions
matched with ESOP shares is determined based on the
number of ESOP shares allocated. Compensation expense
related to these plans was $47 million, $28 million and $30
million for 2002, 2001 and 2000, respectively.
NOTE 22 STOCK-BASED COMPENSATION
PLANS
The Corporation has a long-term incentive award plan
(“Incentive Plan”) that provides for the granting of incentive
stock options, nonqualified stock options, stock appreciation
rights, performance units, restricted stock and other incentive
shares to executives and directors. In any given year, the
number of shares of common stock available for grant under
the Incentive Plan may range from 1.5% to 3% of total issued
shares of common stock determined at the end of the
preceding calendar year. Of this amount, no more than 20% is
available for restricted stock and other incentive share awards.
As of December 31, 2002 no incentive stock options, stock
appreciation rights or performance unit awards were
outstanding.
NONQUALIFIED STOCK OPTIONS
Options are granted at exercise prices not less than the market
value of common stock on the date of grant. Generally,
options granted since 1999 become exercisable in installments
after the grant date. Options granted prior to 1999 are mainly
exercisable twelve months after the grant date. Payment of the
option price may be in cash or previously owned shares of
common stock at market value on the exercise date.
A summary of stock option activity follows:
Per O
p
tion
Shares in thousands Exercise Price
Weighted-
Average
Exercise
Price Shares
January 1, 2000 $11.38 - $76.00 $44.83 11,075
Granted 42.19 - 66.22 44.20 4,171
Exercised 11.38 - 59.31 37.77 (2,952)
Terminated 31.13 - 61.75 48.10 (496)
December 31, 2000 21.63 - 76.00 46.25 11,798
Granted 53.74 - 74.70 73.14 3,996
Exercised 21.63 - 59.31 43.46 (2,737)
Terminated 42.19 - 74.59 53.22 (580)
December 31, 2001 21.75 - 76.00 55.15 12,477
Granted 37.42 - 60.65 54.91 4,514
Exercised 21.75 - 55.59 40.05 (495)
Terminated 27.56 - 74.59 58.98 (955)
December 31, 2002 21.75 - 76.00 55.33 15,541
Information about stock options outstanding at December 31, 2002 follows:
Options Outstanding Options Exercisable
December 31, 2002
Shares in thousands
Range of exercise prices Shares
Weighted-average
exercise price
Weighted-average remaining
contractual life (in years) Shares
Weighted-average
exercise price
$21.75 - $32.99 681 $29.11 2.4 681 $29.11
33.00 - 49.99 3,618 42.24 7.0 1,888 42.85
50.00 - 76.00 11,242 61.12 7.5 5,341 58.85
Total 15,541 $55.33 7.1 7,910 $52.47
Options granted in 2002 and 2001 include options for 52,000
shares in each year granted to non-employee directors.
The weighted-average grant-date fair value of options
granted in 2002, 2001 and 2000 was $11.40, $15.87 and $9.86
per option, respectively. At December 31, 2001 and 2000
options for 5,279,000 and 5,834,898 shares of common stock,
respectively, were exercisable at a weighted-average price of
$48.01 and $45.96, respectively.
There were no options granted in excess of market value in
2002, 2001 or 2000. Shares of common stock available for the
granting of options and other awards under the Incentive Plan
were 10,584,683 at December 31, 2002, 2001 and 2000.