Fannie Mae 2001 Annual Report Download - page 63

{ 61 } Fannie Mae 2001 Annual Report
Restricted Stock
In 2001, 117,447 shares of restricted stock were awarded,
issued, and placed in escrow under the Stock Compensation
Plan of 1993 (192,301 shares in 2000); 105,560 shares were
released as vesting of participants occurred (92,141 shares
in 2000).
Options Available for Future Issuance
At December 31, 2001, 4,757,107 and 12,935,066 shares
remained available for grant under the Employee Stock
Purchase Plan and the Stock Compensation Plan of 1993,
respectively.
9. Employee Retirement Benefits
Retirement Savings Plan
All regular employees of Fannie Mae scheduled to work
1,000 hours or more in a calendar year are eligible to
participate in the company’s Retirement Savings Plan,
which includes a 401(k) option. In 2001, employees could
contribute up to the lesser of 15 percent of their base salary
or the current annual dollar cap established and revised
annually by the Internal Revenue Service. Fannie Mae
amended the plan for 2002 to allow employees to contribute
up to the lesser of 25 percent of their base salary or the
current annual dollar cap established and revised annually by
the Internal Revenue Service. Fannie Mae matches employee
contributions up to 3 percent of base salary in cash.
Employees may allocate investment balances to a variety
of investment options under the plan. As of December 31,
2001, there was no option to invest balances in the plan
directly in stock of Fannie Mae.
Postretirement Benefit Plans
All regular employees of Fannie Mae scheduled to work
1,000 hours or more in a calendar year are covered by a
noncontributory corporate retirement plan or by the
contributory Civil Service Retirement Law. Benefits
payable under the corporate plan are based on years of
service and compensation using the average pay during the
36 consecutive highest-paid months of the last 120 months
of employment. Fannie Mae’s policy is to contribute an
amount no less than the minimum required employer
contribution under the Employee Retirement Income
Security Act of 1974. Contributions to the corporate plan
are made in cash and reflect benefits attributed to employees’
service to date and compensation expected to be paid in the
future. No contribution was made to the corporate plan in
2001. Corporate plan assets consist primarily of listed stocks,
fixed-income securities, and other liquid assets. Plan assets
do not directly include any shares of Fannie Mae stock.
The following table summarizes information about nonqualified stock options outstanding at December 31, 2001.
Options Options
Outstanding Exercisable
Weighted-Average
Number Remaining Weighted-Average Number Weighted-Average
Range of Exercise Prices of Options1Contractual Life Exercise Price of Options1Exercise Price
$18.00 – $35.00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,543 3.0 yrs. $22.45 5,543 $22.45
35.01 – $52.00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,961 5.4 45.72 3,954 45.71
52.01 – $70.00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,335 7.5 63.63 2,426 66.59
70.01 – $87.00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,395 9.0 77.11 1,996 73.71
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,234 6.8 yrs. $57.05 13,919 $44.10
1 Options in thousands.
The following table summarizes nonqualified stock option activity for the years 1999-2001.
2001 2000 1999
Weighted- Weighted- Weighted-
Average Average Average
Exercise Exercise Exercise
Options in thousands Options Price Options Price Options Price
Balance, January 1, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,310 $50.86 22,349 $40.90 21,994 $34.55
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,173 80.37 7,741 66.79 3,224 71.20
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,611) 31.92 (4,003) 23.88 (2,499) 22.52
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (638) 66.93 (777) 61.98 (370) 51.85
Balance, December 31, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,234 $57.05 25,310 $50.86 22,349 $40.90
Options vested, December 31, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,919 $44.10 13,551 $36.83 14,727 $29.26