Travelers 2009 Annual Report Download - page 240

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THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. SHARE-BASED INCENTIVE COMPENSATION (Continued)
A summary of stock option activity under the Company’s 2004 Incentive Plan and legacy share-
based incentive compensation plans as of and for the year ended December 31, 2009 is as follows:
Weighted
Weighted Average Aggregate
Average Contractual Intrinsic
Exercise Life Value
Stock Options Number Price Remaining ($ in millions)
Outstanding, beginning of year . . . . . . . . . . . 32,799,773 $44.97
Granted:
Original ......................... 3,056,802 39.58
Reload .......................... 667,652 47.34
Exercised .......................... (5,100,362) 38.60
Forfeited or expired . . . . . . . . . . . . . . . . . . (1,338,198) 46.80
Outstanding, end of year . . . . . . . . . . . . . . . 30,085,667 $45.48 4.0 Years $164
Vested at end of year(1) . . . . . . . . . . . . . . . 25,076,268 $45.72 3.2 Years $133
Exercisable at end of year . . . . . . . . . . . . . . 21,883,977 $45.68 2.6 Years $118
(1) Represents awards for which the requisite service has been rendered, including those that are
retirement eligible.
The following table presents additional information regarding original and reload grants for the
years ended December 31, 2009, 2008 and 2007.
2009 Original Grants Reload Grants
Weighted average grant-date fair value of options granted (per
share) ......................................... $9.54 $8.95
Total intrinsic value of options exercised during the year (in
millions) ....................................... $52 $—
2008 Original Grants Reload Grants
Weighted average grant-date fair value of options granted (per
share) ......................................... $9.56 $5.80
Total intrinsic value of options exercised during the year (in
millions) ....................................... $ 33 $ 1
2007 Original Grants Reload Grants
Weighted average grant-date fair value of options granted (per
share) ......................................... $14.36 $5.31
Total intrinsic value of options exercised during the year (in
millions) ....................................... $ 90 $ 5
On February 2, 2010, the Company, under the 2004 Stock Incentive Plan, granted 2,601,064 stock
option awards with an exercise price of $51.09 per share. The fair value attributable to the stock option
awards on the date of grant was $11.98 per share.
228