Travelers 2014 Annual Report Download - page 233

Table of Contents
THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. SHARE - BASED INCENTIVE COMPENSATION (Continued)
A summary of stock option activity under the 2014 Incentive Plan and legacy share
- based incentive compensation plans as of and for the year
ended December 31, 2014 is as follows:
The following table presents additional information regarding original and reload grants for the years ended December 31, 2014, 2013 and 2012.
On February 3, 2015, the Company, under the 2014 Stock Incentive Plan, granted 2,244,464 stock option awards with an exercise price of
$106.04 per share. The fair value attributable to the stock option awards on the date of grant was $15.78 per share.
Restricted Stock Units, Deferred Stock Units and Performance Share Award Programs
The Company issues restricted stock unit awards to eligible officers and key employees under the Equity Awards program established
pursuant to the 2014 Incentive Plan. A restricted stock unit represents the right to receive a share of common stock. These restricted stock unit
awards are granted at market price, generally vest three years from the date of grant, do not have voting rights and the underlying shares of
common stock are not issued until the vesting criteria is satisfied. In addition, the Company's board of directors can be issued deferred stock unit
awards from (i) an annual award; (ii) deferred compensation (in lieu of cash retainer); and (iii) dividend reinvestment shares earned on outstanding
deferred compensation.
232
Stock Options
Number
Weighted
Average
Exercise
Price
Weighted
Average
Contractual
Life
Remaining
Aggregate
Intrinsic
Value
($ in millions)
Outstanding, beginning of year
11,071,256
$
56.68
Original grants
2,010,043
80.36
Exercised
(2,845,405
)
49.70
Forfeited or expired
(211,034
)
72.32
Outstanding, end of year
10,024,860
$
63.08
6.5 Years
$
429
Vested at end of year(1)
7,159,841
$
59.44
5.9 Years
$
332
Exercisable at end of year
4,232,855
$
50.65
4.4 Years
$
234
(1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible.
2014
Original Grants
Weighted average grant - date fair value of options granted (per share)
$
17.22
Total intrinsic value of options exercised during the year (in millions)
$
117
2013
Original Grants
Weighted average grant - date fair value of options granted (per share)
$
17.09
Total intrinsic value of options exercised during the year (in millions)
$
122
2012
Original Grants
Reload Grants
Weighted average grant - date fair value of options granted (per share)
$
12.08
$
4.49
Total intrinsic value of options exercised during the year (in millions)
$
102
$
5