Sallie Mae 2010 Annual Report Download - page 175

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13. Stock-Based Compensation Plans and Arrangements (Continued)
of those vesting criteria being met. Non-vested restricted stock is entitled to dividend equivalent units that vest
subject to the same vesting requirements as the underlying restricted stock award.
The fair value of restricted stock awards is determined on the grant date based on our stock price and is
amortized to compensation cost on a straight-line basis over the related vesting periods. As of December 31,
2010, there was $3 million of unrecognized compensation cost related to restricted stock, which is expected to
be recognized over a weighted average period of 1.8 years.
The following table summarizes restricted stock activity for the year ended December 31, 2010.
Number of
Shares
Weighted
Average Grant
Date
Fair Value
Non-vested at December 31, 2009 ............................. 844,580 $16.45
Granted ................................................. 526,900 10.31
Vested .................................................. (536,263) 16.80
Canceled ................................................ (133,480) 18.13
Non-vested at December 31, 2010 ............................. 701,737 $11.98
The total fair value of shares that vested during the years ended December 31, 2010, 2009 and 2008, was
$9 million, $9 million and $11 million, respectively.
Restricted Stock Units
Restricted stock units (“RSUs”) are equity awards granted to employees that entitle the holder to shares
of our common stock when the award vests. The fair value of each grant is determined on the grant date
based on our stock price and is amortized to compensation cost on a straight-line basis over the related vesting
periods. RSUs vest over a minimum twelve-month performance period and generally vest over three years.
Vesting is contingent upon service, corporate earnings-related performance or some combination of those
vesting criteria being met. Non-vested RSUs are entitled to dividend equivalent units that vest subject to the
same vesting requirements as the underlying RSU award.
As of December 31, 2010, there was $.3 million of unrecognized compensation cost related to RSUs,
which is expected to be recognized over a weighted average period of 1.9 years.
The following table summarizes RSU activity for the year ended December 31, 2010.
Number of
RSUs
Weighted
Average Grant
Date
Fair Value
Outstanding at December 31, 2009 ............................. 75,750 $11.07
Granted ................................................. 75,800 10.31
Canceled ................................................ (37,854) 11.29
Vested and converted to common stock.......................... (17,015) 10.44
Outstanding at December 31, 2010 ............................. 96,681 $10.50
The total fair value of RSUs that vested and converted to common stock during the years ended
December 31, 2010, 2009 and 2008 was $.4 million, $.1 million and $0, respectively.
F-72
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)