Goldman Sachs 2002 Annual Report Download - page 85

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82 G O L D M A N SA CH S 2002 AN N UA L R EPO RT
Total employee stock compensation expense, net of for-
feitures, was $645 million, $798 million and $1.35 bil-
lion for the years ended November 2002, November
2001 and November 2000, respectively.
Stock Options
In general, stock options granted to employees in con-
nection with the firm’s initial public offering vest and
become exercisable in equal installments on or about the
third, fourth and fifth anniversaries of the grant date.
Stock options granted to employees subsequent to the
firm’s initial public offering generally vest as outlined in
the applicable stock option agreement and first become
The activity related to these restricted stock units is set forth below:
RESTRICTED STOCK UNITS OUTSTANDING
NO FUTURE FUTURE
SERVICE SERVICE
REQUIRED REQUIRED
Outstanding, November 1999 35,703,923 40,344,481
Granted(1) 6,401,796 10,900,941
Forfeited (1,189,406) (2,752,278)
Delivered (9,571,298) —
Vested 2,157,204 (2,157,204)
Outstanding, November 2000 33,502,219 46,335,940
Granted 116,968 1,638,536
Forfeited (975,713) (3,065,731)
Delivered (10,253,224) —
Vested 3,239,683 (3,239,683)
Outstanding, November 2001 25,629,933 41,669,062
Granted(2) 1,484,153 4,855,553
Forfeited (591,957) (3,135,134)
Delivered (21,700,672) —
Vested 13,494,481 (13,494,481)
Outstanding, November 2002 18,315,938 29,895,000
(1) Includes restricted stock units granted in connection with the combination with SLK and restricted stock units granted to employees, subsequent
to year end, as part of year-end compensation.
(2) Includes restricted stock units granted to employees subsequent to year end as part of year-end compensation.
exercisable on the third anniversary of the grant date. All
employee stock option agreements provide that vesting is
accelerated in certain circumstances, such as upon retire-
ment, death and extended absence. In general, all stock
options expire on the tenth anniversary of the grant date,
although they may be subject to earlier termination or
cancellation in certain circumstances in accordance with
the terms of the firm’s stock incentive plan and the appli-
cable stock option agreement. The dilutive effect of the
firm’s outstanding stock options is included in “Average
common shares outstanding — Diluted,” on the consoli-
dated statements of earnings.
N otes to Consolidated Financial Statem ents