Fifth Third Bank 2011 Annual Report Download - page 136

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
134 Fifth Third Bancorp
The following table summarizes unvested RSAs by grant-date fair value at December 31, 2011:
Nonvested RSAs
Weighted-
Average
Number of Remaining
RSAs at Contractual
Year End Life
Grant-Date Fair Value Per Share (000s) (in years)
Under $10.00 409 1.3
$10.01-$20.00 3,982 1.4
$20.01-$30.00 134 0.3
$30.01-$40.00 239 0.3
A
ll RSAs 4,764 1.3
Stock options
The grant-date fair value of stock options is measured using the
Black-Scholes option-pricing model. There were no stock options
granted during 2011 and 2010. Stock options granted during 2009
were immaterial to the Bancorp’s Consolidated Financial
Statements.
The total intrinsic value of options exercised was immaterial to
the Bancorp’s Consolidated Financial Statements in 2011, 2010 and
2009. Cash received from options exercised during 2011 was $1
million and was immaterial to the Bancorp’s Consolidated Financial
Statements in 2010 and 2009. Tax benefits realized from exercised
options were immaterial to the Consolidated Financial Statements
during 2011, 2010 and 2009. All stock options were vested at
December 31, 2008, therefore, no stock options vested during 2011,
2010, or 2009. As of December 31, 2011, the aggregate intrinsic
value of both outstanding options and exercisable options was
immaterial to the Consolidated Financial Statements.
2011 2010 2009
Weighted- Weighted- Weighted-
Average Average Average
Stock Options (shares in thousands) Shares Exercise Price Shares Exercise Price Shares Grant Price
Outstanding at January 1 11,859 $52.01 15,504 $49.29 20,564 $48.97
Granted - - - - 1 8.59
Exercised (96) 9.25 (58) 8.76 (11) 8.33
Forfeited or expired (4,179) 49.61 (3,587) 40.54 (5,050) 48.06
Outstanding at December 31 7,584 $53.88 11,859 $52.01 15,504 $49.29
Exercisable at December 31 7,584 $53.88 11,859 $52.01 15,504 $49.29
The following table summarizes outstanding and exercisable stock options by exercise price at December 31, 2011:
Outstanding and Exercisable Stock Options
Weighted-
Average
Number of Remaining
Options at Weighted- Contractual
Year End Average Life
Exercise price per share (000s) Exercise Price (in years)
Under $10.00 125 $ 9.62 0.3
$10.01-$20.00 694 12.59 2.8
$20.01-$30.00 60 23.63 0.7
$30.01-$40.00 139 36.25 2.3
Over $40.00 6,566 59.74 0.8
A
ll stock options 7,584 $53.88 1.0
Other stock-based compensation
During 2009, the Bancorp’s Board of Directors approved the use of
phantom stock units as part of its compensation for executives in
connection with changes made in reaction to the TARP
compensation rules. On February 22, 2011, the Bancorp redeemed
its Series F preferred stock held by the U.S. Treasury under the
CPP. As a result of this redemption, the last payment of phantom
stock occurred in April of 2011. The phantom stock units were
issued under the Bancorp’s 2008 Incentive Compensation Plan. The
number of phantom stock units was determined each pay period by
dividing the amount of salary to be paid in phantom stock units for
that pay period, by the reported closing price of the Bancorp’s
common stock on the pay date for such pay period. The phantom
stock units vest immediately. Phantom stock was expensed based on
the number of outstanding units multiplied by the closing price of
the Bancorp’s stock at period end. The phantom stock units did not
include any rights to receive dividends or dividend equivalents.
Phantom stock units issued on or before June 12, 2010 were settled
in cash upon the earlier to occur of June 15, 2011 or the executive’s
death. Units issued thereafter will be settled in cash with 50% to be
settled on June 15, 2012 and 50% to be settled on June 15, 2013.
The amount paid on settlement of the phantom stock units is equal
to the total amount of phantom stock units settled at the reported
closing price of the Bancorp’s common stock on the settlement