Prudential 2002 Annual Report Download - page 130
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Notes to Consolidated Financial Statements
16. STOCK-BASED COMPENSATION (continued)
A summary of the status of the Company’s employee stock option grants is as follows:
Shares
Weighted
Average
Exercise Price
Outstanding at December 31, 2000 .................................................. — $ —
Granted........................................................................ 11,364,120 27.53
Exercised ...................................................................... — —
Forfeited ....................................................................... (116,400) 27.50
Expired ........................................................................ — —
Transfer to non-employee status .................................................... (41,760) 27.50
Outstanding at December 31, 2001 .................................................. 11,205,960 27.53
Granted........................................................................ 10,367,694 33.53
Exercised ...................................................................... (45,109) 27.50
Forfeited ....................................................................... (2,338,522) 28.29
Expired ........................................................................ — —
Transfer to non-employee status .................................................... (68,662) (27.70)
Outstanding at December 31, 2002 .................................................. 19,121,361 $ 30.69
Options exercisable were 3,291,965 shares with a weighted average exercise price of $27.72 and 15,000
shares with a weighted average exercise price of $27.50 at December 31, 2002 and 2001, respectively.
Employee options granted and their related grant date weighted average fair value are as follows:
2002 2001
Shares
Weighted
Average
Grant Date
Fair Value
Weighted
Average
Exercise
Price Shares
Weighted
Average
Grant Date
Fair Value
Weighted
Average
Exercise
Price
Exercise equals market ................. 10,367,694 $11.87 $33.53 11,364,120 $8.78 $27.53
Exercise exceeds market ................ — — — — — —
Exercise less than market ............... — — — — — —
Totalgrantedduringtheyear ............ 10,367,694 $11.87 $33.53 11,364,120 $8.78 $27.53
The following table summarizes information about the employee stock options outstanding at December 31,
2002:
Options Outstanding Options Exercisable
Number
Outstanding
Weighted
Average
Remaining
Contractual Life
Weighted
Average
Exercise
Price
Number
Exercisable
Weighted
Average
Exercise
Price
Range of exercise prices:
$27.50 — $29.81 ........................... 9,193,303 8.96 $27.53 3,195,091 $27.53
$32.00 — $34.24 ........................... 9,928,058 9.56 $33.61 96,874 $33.95
Total .................................... 19,121,361 9.27 $30.69 3,291,965 $27.72
Non-employee Stock Option Grants
The Company applies SFAS No. 123 in accordance with Emerging Issues Task Force Issue No. 96-18
“Accounting for Equity Instruments That Are Issued to Other Than Employees” and related interpretations in
accounting for its non-employee stock options.
Prudential Financial 2002 Annual Report 129