Wells Fargo 2008 Annual Report Download - page 149

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As of December 31, 2008, there was $140 million of
unrecognized compensation cost related to stock options.
That cost is expected to be recognized over a weighted-
average period of 1.9 years.
The total intrinsic value of options exercised during 2008
and 2007 was $348 million and $588 million, respectively.
Cash received from the exercise of options for 2008 and
2007 was $747 million and $1,026 million, respectively. The
actual tax benefit recognized in stockholders’ equity for the tax
Number Weighted- Weighted- Aggregate
average average intrinsic
exercise remaining value
price contractual (in millions)
term (in yrs.)
Incentive Compensation Plans
Options outstanding as of December 31, 2007 238,629,924 $ 28.87
Granted 48,890,048 31.40
Canceled or forfeited (4,123,158) 32.61
Exercised (25,986,596) 23.66
Acquisitions 26,197,039 198.07
Options outstanding as of December 31, 2008 283,607,257 45.36 5.7 $414
As of December 31, 2008:
Options exercisable and expected to be exercisable (1) 281,180,115 45.47 5.7 414
Options exercisable 200,077,486 50.76 4.5 413
PartnerShares Plan
Options outstanding as of December 31, 2007 24,365,561 $ 23.50
Canceled or forfeited (543,896) 21.12
Exercised (6,159,198) 21.34
Options outstanding as of December 31, 2008 17,662,467 24.33 2.6 $ 91
As of December 31, 2008:
Options exercisable and expected to be exercisable (1) 17,662,467 24.33 2.6 91
Options exercisable 17,662,467 24.33 2.6 91
Director Plans
Options outstanding as of December 31, 2007 827,285 $ 27.72
Granted 146,860 29.88
Canceled (34,080) 34.51
Exercised (32,956) 19.32
Options outstanding as of December 31, 2008 907,109 28.12 5.6 $ 2
As of December 31, 2008:
Options exercisable and expected to be exercisable (1) 907,109 28.12 5.6 2
Options exercisable 907,109 28.12 5.6 2
(1) Adjusted for estimated forfeitures.
deductions from the exercise of options totaled $123 million
and $210 million, respectively, for 2008 and 2007.
We do not have a specific policy on repurchasing shares
to satisfy share option exercises. Rather, we have a general
policy on repurchasing shares to meet common stock
issuance requirements for our benefit plans (including share
option exercises), conversion of its convertible securities,
acquisitions, and other corporate purposes. Various factors
determine the amount and timing of our share repurchases,
options generally expire 10 years after the date of grant.
Because the exercise price of each PartnerShares Plan grant
has been equal to or higher than the quoted market price of
our common stock at the date of grant, we did not recognize
any compensation expense in 2005 and prior years. In 2006,
under FAS 123(R), we began to recognize expense related to
these grants, based on the remaining vesting period. All of
our PartnerShares Plan grants were fully vested as of
December 31, 2008.
Director Plan
We grant common stock and options to purchase common
stock to non-employee directors elected or re-elected at the
annual meeting of stockholders and prorated awards to
directors who join the Board at any other time. The stock
award vests immediately. Options granted in 2008 or earlier
can be exercised after six months through the tenth anniversary
of the grant date. Stock awards and option grants were made
to non-employee directors under the Directors Stock
Compensation and Deferral Plan. As a result of action taken
by the Board of Directors on September 30, 2008, future stock
awards and option grants will be made under our Long-Term
Incentive Compensation Plan.
The table below summarizes stock option activity and
related information for 2008. Options assumed in mergers
are included in the activity and related information for
Incentive Compensation Plans if originally issued under
an employee plan, and in the activity and related information
for Director Plans if originally issued under a director plan.