Wells Fargo 2009 Annual Report Download - page 166

During 2009 the Board of Directors approved salary
increases for certain executive officers that were paid, after
taxes and other withholdings, in our common stock. About
245,000 shares were issued in 2009 for salary increases at an
average fair value of $27.77. There are no longer restrictions
on these shares because we repaid the TARP CPP investment
in Wells Fargo in December 2009.
For various acquisitions and mergers, we converted
employee and director stock options of acquired or merged
companies into stock options to purchase our common stock
based on the terms of the original stock option plan and the
agreed-upon exchange ratio. In addition, we converted
restricted stock awards into awards that entitle holders to
our stock after the vesting conditions are met. Holders
receive cash dividends on outstanding awards if provided
in the original award.
The total number of shares of common stock available for
grant under the plans at December 31, 2009, was 304 million.
PARTNERSHARES PLAN In 1996, we adopted the PartnerShares®
Stock Option Plan, a broad-based employee stock option plan.
It covers full- and part-time employees who generally were
not included in the long-term incentive compensation plan
described above. No options have been granted under the
plan since 2002, and as a result of action taken by the Board
of Directors on January 22, 2008, no future awards will be
granted under the plan. All of our PartnerShares Plan grants
were fully vested as of December 31, 2007.
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 anniver-
sary of the grant date. Prior to 2009, 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, stock awards and options granted in 2009 were made
under our Long Term Incentive Compensation Plan. Options
granted in 2009 can be exercised after 12 months through
the tenth anniversary of the grant date.
The table below summarizes stock option activity and
related information. 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.

Weighted-
Weighted- average Aggregate
average remaining intrinsic
exercise contractual value
Number price term (in yrs.) (in millions)
Incentive compensation plans
Options outstanding as of December 31, 2008 283,607,257 $45.36
Granted 80,701,781 13.29
Canceled or forfeited (13,296,344) 76.37
Exercised (6,641,018) 21.24
Options outstanding as of December 31, 2009 344,371,676 37.11 5.9 $1,264
As of December 31, 2009:
Options exercisable and expected to be exercisable (1) 340,601,461 37.31 5.9 1,230
Options exercisable 221,963,884 46.47 4.4 190
PartnerShares Plan
Options outstanding as of December 31, 2008 17,662,467 24.33
Canceled or forfeited (284,177) 24.63
Exercised (512,693) 24.08
Options outstanding as of December 31, 2009 16,865,597 24.33 1.6 45
As of December 31, 2009:
Options exercisable and expected to be exercisable 16,865,597 24.33 1.6 45
Options exercisable 16,865,597 24.33 1.6 45
Director plans
Options outstanding as of December 31, 2008 907,109 28.12
Canceled (53,476) 21.57
Options outstanding as of December 31, 2009 853,633 28.53 4.9 1
As of December 31, 2009:
Options exercisable and expected to be exercisable 853,633 28.53 4.9 1
Options exercisable 853,633 28.53 4.9 1
(1) Adjusted for estimated forfeitures.
Note 18: Common Stock and Stock Plans (continued)