Dow Chemical 2009 Annual Report Download - page 171
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Table of Contents
The following table provides stock option activity for 2009:
Stock Options 2009
Shares in thousands Shares
Exercise
Price (1)
Outstanding at beginning of year 53,777 $ 39.39
Granted 11,416 $ 9.54
Exercised (10) $ 27.55
Forfeited/Expired (4,939) $ 33.52
Outstanding at end of year 60,244 $ 34.22
Remaining contractual life in years 5.40
Aggregate intrinsic value in millions $ 203 -
Exercisable at end of year 40,671 $ 39.78
Remaining contractual life in years 3.98
Aggregate intrinsic value in millions $ 1 -
(1) Weighted-average per share
Additional Information about Stock Options
In millions, except per share amounts 2009 2008 2007
Weighted-average fair value per share of options granted $ 2.60 $ 8.88 $ 9.81
Total compensation expense for stock option plans $ 46 $ 79 $ 86
Related tax benefit $ 17 $ 29 $ 32
Total amount of cash received from the exercise of options - $ 40 $ 235
Total intrinsic value of options exercised (1) - $ 12 $ 103
Related tax benefit - $ 4 $ 38
(1) Difference between the market price at exercise and the price paid by the employee to exercise the options
Total unrecognized compensation cost related to unvested stock option awards was $20 million at December 31, 2009 and is expected to be recognized
over a weighted-average period of 0.7 years.
Deferred and Restricted Stock
Under the 1988 Plan, the Company grants deferred stock to certain employees. The grants vest after a designated period of time, generally two to five years.
The following table shows changes in nonvested deferred stock:
Deferred Stock 2009
Shares in thousands Shares
Grant Date
Fair Value (1)
Nonvested at beginning of year 8,116 $ 43.73
Granted 6,155 $ 11.70
Vested (1,866) $ 43.32
Canceled (192) $ 26.99
Nonvested at end of year 12,213 $ 27.91
(1) Weighted-average per share
Additional Information about Deferred Stock
In millions, except per share amounts 2009 2008 2007
Weighted-average fair value per share of deferred stock granted $ 11.70 $ 38.38 $ 43.61
Total fair value of deferred stock vested and delivered (1) $ 20 $ 11 $ 24
Related tax benefit $ 7 $ 4 $ 9
Total compensation expense for deferred stock awards $ 80 $ 95 $ 76
Related tax benefit $ 30 $ 35 $ 28
(1) Includes the fair value of shares vested in prior years and delivered in the reporting year.
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