Paychex 2015 Annual Report Download - page 71

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PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Other information pertaining to restricted stock follows:
Year ended May 31,
In millions, except per share amounts 2015 2014 2013
Weighted-average grant-date fair value of restricted stock granted ..... $41.70 $38.53 $31.76
Total grant-date fair value of restricted stock vested ................. $ 3.5 $ 3.3 $ 2.1
Performance shares: Performance shares have a two-year performance period, after which the amount of
restricted shares earned will be determined based on achievement against established performance targets. The
restricted shares earned will then be subject to a one year service period. Performance shares do not have voting
rights or earn dividend equivalents during the performance period. The fair value of performance shares is equal
to the closing market price of the underlying common stock as of the date of grant, adjusted for the present value
of expected dividends over the performance period.
The following table summarizes performance share activity for the year ended May 31, 2015:
In millions, except per share amounts
Performance
shares
Weighted-average
grant-date
fair value
per share
Nonvested as of May 31, 2014 ............................... 0.5 $31.61
Granted(1) .............................................. 0.2 $37.61
Vested ................................................. (0.1) $28.87
Forfeited ............................................... — $ —
Nonvested as of May 31, 2015 ............................... 0.6 $34.24
(1) Performance shares granted assuming achievement of performance goals at target. Actual amount of shares
to be earned may differ from this amount.
Non-compensatory employee benefit plan: The Company offers an Employee Stock Purchase Plan to all
employees under which the Company’s common stock can be purchased through a payroll deduction with no
discount to the market price and no look-back provision. All transactions occur directly through the Company’s
transfer agent and no brokerage fees are charged to employees, except for when stock is sold. The plan has been
deemed non-compensatory and therefore, no stock-based compensation costs have been recognized for fiscal
years 2015, 2014, or 2013 related to this plan.
50