Travelers 2010 Annual Report Download - page 232

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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, 2010 is as follows:
Weighted
Weighted Average Aggregate
Average Contractual Intrinsic
Exercise Life Value
Stock Options Number Price Remaining ($ in millions)
Outstanding, beginning of year ........... 30,085,667 $45.48
Granted:
Original ......................... 2,687,885 51.06
Reload .......................... 480,305 52.13
Exercised .......................... (9,050,022) 44.10
Forfeited or expired .................. (1,726,854) 49.62
Outstanding, end of year ............... 22,476,981 $46.52 4.4 Years $214
Vested at end of year(1) ............... 17,937,885 $46.64 3.5 Years $170
Exercisable at end of year .............. 14,280,149 $46.68 2.5 Years $136
(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, 2010, 2009 and 2008.
2010 Original Grants Reload Grants
Weighted average grant-date fair value of options granted (per
share) ......................................... $11.94 $3.46
Total intrinsic value of options exercised during the year (in
millions) ....................................... $77 $3
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
On February 1, 2011, the Company, under the 2004 Stock Incentive Plan, granted 2,346,767 stock
option awards with an exercise price of $56.81 per share. The fair value attributable to the stock option
awards on the date of grant was $12.94 per share.
220