Chesapeake Energy 2015 Annual Report Download - page 117

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
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The 2014 LTIP authorizes the issuance of the following types of awards: (i) nonqualified and incentive stock
options; (ii) SARs; (iii) restricted stock; (iv) performance awards, including PSUs; and (v) other stock-based awards.
For both stock options and SARs, the exercise price may not be less than the fair market value of our common stock
on the date of grant and the maximum exercise period may not exceed ten years from the date of grant. Awards granted
under the plan vest at specified dates and/or upon the satisfaction of certain performance or other criteria, as determined
by the Compensation Committee. In 2015, we issued 225,630 and 5,440,420 shares of restricted stock, net of forfeitures,
to non-employee directors and employees, respectively, under the 2014 LTIP. In 2014, we issued 50,771 and 272,289
shares of restricted stock net of forfeitures, to non-employee directors and employees, respectively, under the 2014
LTIP. Additionally in 2015, we issued options to purchase 1,208,185 shares of common stock to employees under the
2014 LTIP. As of December 31, 2015, 35,350,862 shares of common stock remained issuable under the 2014 LTIP.
2003 Stock Award Plan for Non-Employee Directors. Under Chesapeake's 2003 Stock Award Plan for Non-
Employee Directors (2003 Non-Employee Director Plan), a maximum of 10,000 shares of Chesapeake's common
stock is awarded to each newly appointed non-employee director on his or her first day of service. Subject to any
adjustments as provided by the plan, the aggregate number of shares issued may not exceed 250,000 shares. The
plan was approved by our shareholders. We issued 10,000, 10,000 and 20,000 shares of common stock to newly
appointed non-employee directors under the 2003 Non-Employee Director Plan in 2015, 2014 and 2013, respectively.
In November 2015, our Board of Directors terminated the 2003 Non-Employee Director Plan.
Equity-Classified Awards
Restricted Stock. We grant restricted stock units to employees and non-employee directors. Prior to 2014, we
also granted restricted stock awards as equity compensation. We refer to both types of awards as restricted stock.
Restricted stock vests over a minimum of three years and the holder receives dividends, if paid, on unvested shares.
A summary of the changes in unvested restricted stock during 2015, 2014 and 2013 is presented below.
Shares of
Unvested
Restricted Stock
Weighted Average
Grant Date
Fair Value
(in thousands)
Unvested restricted stock as of January 1, 2015 ........................ 10,091 $ 21.20
Granted ................................................................................... 7,095 $ 13.90
Vested ..................................................................................... (4,157) $ 21.70
Forfeited ................................................................................. (2,574) $ 16.98
Unvested restricted stock as of December 31, 2015................... 10,455 $ 17.31
Unvested restricted stock as of January 1, 2014 ........................ 13,400 $ 23.38
Granted ....................................................................................... 5,049 $ 25.92
Vested ......................................................................................... (4,803) $ 27.17
Forfeited ...................................................................................... (3,555) $ 28.09
Unvested restricted stock as of December 31, 2014................... 10,091 $ 21.20
Unvested restricted stock as of January 1, 2013 ........................ 18,899 $ 23.72
Granted ....................................................................................... 9,189 $ 19.68
Vested ......................................................................................... (12,897) $ 21.32
Forfeited ...................................................................................... (1,791) $ 22.86
Unvested restricted stock as of December 31, 2013................... 13,400 $ 23.38
The aggregate intrinsic value of restricted stock that vested during 2015 was approximately $59 million based
on the stock price at the time of vesting.