Under Armour 2014 Annual Report Download - page 82

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Non-Employee Director Compensation Plan and Deferred Stock Unit Plan
The Company’s Non-Employee Director Compensation Plan (the “Director Compensation Plan”) provide
s
f
or cash compensation and equity awards to non-employee directors of the Company under the 200
5
Plan. Non-
employee directors have the option to defer the value of their annual cash retainers as deferred stock units i
n
accordance with the Under Armour, Inc. Non-Employee Deferred Stock Unit Plan (the “DSU Plan”). Each ne
w
non-employee director receives an award of restricted stock units upon the initial election to the Board of
Directors, with the units covering stock valued at
$
100.0 thousand on the grant date and vesting in three equa
l
annual installments. In addition, each non-employee director receives, following each annual stockholders’
meeting, a grant under the 2005 Plan of restricted stock units covering stock valued at
$
75.0 thousand on the
grant date. Beginning in 2015, this annual grant is increasing from
$
75.0 thousand to
$
125.0 thousand. Each
award vests 100% on the date of the next annual stockholders’ meeting following the grant date.
The receipt of the shares otherwise deliverable upon vesting of the restricted stock units automatically
defers into deferred stock units under the DSU Plan. Under the DSU Plan each deferred stock unit re
p
resents the
Company’s obligation to issue one share of the Company’s Class A Common Stock with the shares delivered si
x
months following the termination of the director’s service.
S
tock O
p
tions
The weighted average fair value of a stock option granted for the year ended December 31, 2013 wa
s
$
12.91. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes
o
ption-pricing model with the following weighted average assumptions:
Y
ear
E
n
d
e
d
December
31,
2013
R
i
s
k
-
f
ree
i
nterest rate 1.2%
A
vera
g
e expected life in
y
ears 6.25
E
xpected volatilit
y
55.4
%
E
xpecte
ddi
v
id
en
dyi
e
ld
—%
T
h
ere were no stoc
k
opt
i
ons
g
rante
dd
ur
i
n
g
t
h
e
y
ears en
d
e
d
Decem
b
er 31, 2014 an
d
Decem
b
er 31, 2012
.
7
2