ComEd 2013 Annual Report Download - page 224

19. Common Stock
Thefollowingtable presentscommon stock authorizedandoutstandingasofDecember 31,2013 and2012:
December 31,
2013 2012
Par Value Shares Authorized Shares Outstanding
Common Stock
Exelon ................................................. no par value 2,000,000,000 857,290,484 854,781,389
ComEd................................................. $12.50250,000,000 127,016,896 127,016,761
PECO ................................................. no par value 500,000,000 170,478,507170,478,507
BGE ................................................... no par value 175,000,000 1,000 1,000
ComEd had73,709and 74,182warrantsoutstandingto purchaseComEd common stock at December 31,2013 and2012,
respectively. Thewarrantsentitle theholdersto convert such warrantsinto common stock ofComEd at a conversion rate ofone
share ofcommon stock for three warrants. At December 31,2013 and2012,24,570and24,727sharesofcommon stock,
respectively, were reservedfor theconversion ofwarrants.
Share Repurchases
Share Repurchase Programs.In April 2004, Exelon’s BoardofDirectorsapprovedadiscretionaryshare repurchase programthat
allowedExelon to repurchasesharesofitscommon stock on a periodic basis inthe open market.Theshare repurchase program
wasintendedto mitigate,in part,thedilutiveeffectofshares issuedunder Exelon’s employee stock option plan andExelon’s ESPP.
Theaggregate value ofthesharesofcommon stock repurchasedpursuant to the programcannot exceedtheeconomic benefit
receivedafter January1,2004due to stock option exercisesandshare purchasespursuant to Exelon’s ESPP. Theeconomic benefit
consistsofthedirectcash proceeds frompurchasesofstock andthetaxbenefitsassociatedwithexercisesofstock options. The
2004share repurchase programhadno specifiedlimitonthenumber ofsharesthat couldbe repurchasedandno specified
termination date.In 2008, Exelon management decidedto defer indefinitelyanyshare repurchases. Anysharesrepurchasedare
heldastreasuryshares, at cost,unless cancelledor reissuedat thediscretion ofExelon’s management.Under theshare repurchase
programs, 35million sharesofcommon stock are heldastreasurystock withacostof$2.3billion at December 31,2013.During
2013,2012 and2011,Exelon hadno common stock repurchases.
Stock-Based Compensation Plans
Exelon grantsstock-basedawards through its LTIP, which primarilyincludesstock options, restrictedstock unitsandperformance
share awards. At December 31,2013,there were approximately16million sharesauthorizedfor issuanceunder theLTIP. For the
yearsendedDecember 31,2013,2012 and2011,exercisedand distributedstock-basedawards were primarily issuedfrom
authorizedbut unissuedcommon stock shares.
TheCompensation Committee ofExelon’s BoardofDirectorschangedthemix ofawards grantedunder theLTIP in 2013 by
eliminatingstock optionsinfavor oftheuseoffull value shares, consistingofperformancesharesandrestrictedstock. The
performanceshare awards grantedin 2013 will cliff vestattheendofathree-year performance period. The performanceshare
awards grantedin 2012 andearlier hada one-year performance periodandvestedratablyover three years. Toaddress the
reduction in annual awardopportunityresultingfromthe transition to a three-year cliff vestingperformance period, theCompensation
Committee also approveda one-timegrant ofperformanceshare transition awards in 2013, which will vest one-thirdafter one year,
withtheremainingbalancevestingover a two-year performance period.
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