Allstate 2012 Annual Report Download - page 51

repricing is not permitted. In other words, without an executives and our stockholders. In addition, restricted
event such as a stock split, if the Committee cancels an stock units provide a retention incentive because they
award and substitutes a new award, the exercise price of have a real, current value that is forfeited in most
the new award cannot be less than the exercise price of circumstances if an executive terminates employment
the cancelled award. All stock option awards have been before the restricted stock units vest. Under the terms of
made in the form of nonqualified stock options. The the restricted stock unit awards, the executives have only
options granted to the named executives in 2011 become the rights of general unsecured creditors of Allstate and
exercisable over four years: 50% on the second no rights as stockholders until delivery of the underlying
anniversary of the grant date and 25% on each of the shares. The restricted stock units granted to the named
third and fourth anniversary dates, and expire in ten years, executives in 2011 vest over four years: 50% on the
except in certain change-in-control situations or under second anniversary of the grant date and 25% on each of
other special circumstances approved by the Committee. the third and fourth anniversary dates, except in certain
change-in-control situations or under other special
Restricted stock units circumstances approved by the Committee. The restricted
stock units granted to the named executives in 2011
Each restricted stock unit represents our promise to include the right to receive previously accrued dividend
transfer one fully vested share of stock in the future if and equivalents when the underlying restricted stock unit
when the restrictions expire (when the unit ‘‘vests’’). vests.
Because restricted stock units are based on and payable
in stock, they reinforce the alignment of interests of our
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Executive Compensation Tables
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