Sallie Mae 2014 Annual Report Download - page 129

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SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, unless otherwise noted)
14.
Stock-Based Compensation Plans and Arrangements (Continued)
Restricted Stock
Restricted stock awards generally vest over three years and in some cases based on corporate earnings-related
performance targets. Outstanding restricted stock is entitled to dividend equivalent units that vest subject to the same vesting
requirements or lapse of transfer restrictions, as applicable, as the underlying restricted stock award. The fair value of restricted
stock awards is based on our stock price at the grant date.
The following table summarizes restricted stock activity for the year ended December 31, 2014.
(Amounts in thousands, except per share data)
Number of
Shares
Weighted
Average Grant
Date
Fa ir Va lue
Non-vested at December 31, 2013 .....................
33,333
$
12.81
Granted ...........................................................
49,123
9.46
Vested
(1)
..........................................................
(33,333
)
12.81
Canceled .........................................................
(684
)
21.91
Spin-Off adjustment
(2)
......................................
6,529
7.89
Non-vested at December 31, 2014
(3)
...................
54,968
$
9.12
(1) The total fair value of shares that vested during the years ended December 31, 2014, 2013 and 2012
was $427, $592 and $1,189, respectively.
(2) Represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by
SLM and Navient employees.
(3) As of December 31, 2014, there was $188 of unrecognized compensation cost related to restricted
stock net of estimated forfeitures, which is expected to be recognized over a weighted average period
of 0.5 years.
Restricted Stock Units and Performance Stock Units
Restricted stock units (“RSUs”) and performance stock units (“PSUs”) are equity awards granted to employees that
entitle the holder to shares of our common stock when the award vests. RSUs may be time-vested over three years or vested at
grant but subject to transfer restrictions, while PSUs vest based on corporate earnings-related performance targets over a three-
year period. In April 2014, our PSUs with vesting contingent upon performance were replaced with time-vesting RSUs. This
conversion was made prior to the Spin-Off and was assessed to yield no incremental expense.
Outstanding RSUs are entitled to dividend equivalent units that vest subject to the same vesting requirements or lapse of
transfer restrictions, as applicable, as the underlying award. The fair value of RSUs is based on our stock price at the grant date.
F-45