Travelers 2011 Annual Report Download - page 235

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, 2011 is as follows:
Weighted
Weighted Average Aggregate
Average Contractual Intrinsic
Exercise Life Value
Stock Options Number Price Remaining ($ in millions)
Outstanding, beginning of year ........... 22,476,981 $46.52
Granted:
Original ......................... 2,380,199 56.85
Reload .......................... 574,815 62.25
Exercised .......................... (6,845,142) 46.03
Forfeited or expired .................. (2,373,892) 56.61
Outstanding, end of year ............... 16,212,961 $47.33 5.4 Years $194
Vested at end of year(1) ............... 12,218,772 $46.71 4.5 Years $154
Exercisable at end of year .............. 8,625,125 $45.22 3.4 Years $121
(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, 2011, 2010 and 2009.
2011 Original Grants Reload Grants
Weighted average grant-date fair value of options granted (per share) . . . $12.94 $3.19
Total intrinsic value of options exercised during the year (in millions) . . . $76 $11
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 $ —
On February 7, 2012, the Company, under the 2004 Stock Incentive Plan, granted 2,437,433 stock
option awards with an exercise price of $59.74 per share. The fair value attributable to the stock option
awards on the date of grant was $12.08 per share.
Restricted Stock, Restricted Stock Units, Deferred Stock and Performance Share Award Programs
The Company, commencing with equity grants on or after January 1, 2007, issues restricted stock
unit awards to eligible officers and key employees under the Equity Awards program established
pursuant to the 2004 Incentive Plan. A restricted stock unit represents the right to receive a share of
common stock. These restricted stock unit awards are granted at market price, generally vest three
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