SunTrust 2003 Annual Report Download - page 77

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Annual Report 2003 SunTrust Banks, Inc. 75
The compensation element for performance stock (which
is deferred and shown as a reduction of shareholders’ equity)
is equal to the fair market value of the shares at the date of
the award and is amortized to compensation expense over the
period from the award date to age 64 or the 15th anniversary of
the award date, whichever comes first. Phantom Stock units
have also been issued. Payment of Phantom Stock units will
be made to participants in shares of SunTrust stock upon the
earlier to occur of (1) the date on which the participant would
have vested in his or her performance stock or (2) the date of
a change in control. Dividend equivalents will be paid at the
same rate as the shares of performance stock; however, these
units do not carry voting privileges.
Compensation expense related to the incentive plans for the three years ended December 31 were as follows:
(Dollars in thousands) 2003 2002 2001
401(k) Plan and Performance Bonus Plan1$44,090 $43,670 $52,184
Management Incentive Plan and Performance Unit Plan 29,849 (5,664) 28,618
Performance stock 5,475 3,074 6,110
1The non-qualified Performance Bonus Plan was not paid in 2002 and was discontinued as of January 1, 2003.
The following table presents information on stock options and performance stock:
Stock Options Performance Stock
Weighted- Weighted-
Average Deferred Average
(Dollars in thousands except per share data) Shares Price Range Exercise Price Shares Compensation Grant Price
Balance, January 1, 2001 10,001,653 $ 3.46 – $76.50 $52.83 3,128,474 $44,397 $ —
Granted 3,231,025 64.40 – 69.38 64.59 49,896 3,436 68.87
Exercised/Vested (627,840) 9.23 – 70.81 28.96 (105,399) — —
Canceled/Expired/Forfeited (474,542) 17.88 – 73.06 64.46 (101,374) (4,206) —
Amortization of compensation
for Performance Stock — — — — (6,110) —
Balance, December 31, 2001 12,130,296 11.13 – 76.50 56.70 2,971,597 37,517 —
Granted 478,191 58.21 – 67.98 62.78 19,523 1,261 64.62
Exercised/Vested (415,634) 11.13 – 65.25 33.14 (145,913) — —
Canceled/Expired/Forfeited (449,945) 11.13 – 73.06 63.96 (157,715) (6,842) —
Amortization of compensation
for Performance Stock — — — — (3,074) —
Balance, December 31, 2002 11,742,908 13.96 – 76.50 57.56 2,687,492 28,862 —
Granted 3,818,050 54.28 – 69.90 54.48 198,985 11,040 55.48
Exercised/Vested (777,087) 6.96 – 65.25 36.14 (22,930) — —
Canceled/Expired/Forfeited (795,225) 21.03 – 73.06 61.50 (100,382) (4,787) —
Acquisition of Lighthouse
Financial Services, Inc. 175,417 6.96 – 22.75 13.32 — — —
Amortization of compensation
for Performance Stock — — — — (5,475) —
Balance, December 31, 2003 14,164,063 $ 6.96 – $76.50 $57.14 2,763,165 $29,640
Exercisable, December 31, 2003 7,241,116 $55.12
Available for Additional Grant,
December 31, 2003 4,310,3201
1Includes 3.8 million shares available to be issued as performance stock.