Green Dot 2012 Annual Report Download - page 85

GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
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Note 10—Employee Stock-Based Compensation
Employee Stock-Based Compensation
In January 2001, we adopted the 2001 Stock Plan. The 2001 Stock Plan provided for the granting of incentive
stock options, nonqualified stock options and other stock awards. Options granted under the 2001 Stock Plan generally
vest over four years and expire five years or ten years years from the date of grant.
In June 2010, our board of directors adopted, and in July 2010 our stockholders approved, the 2010 Equity Incentive
Plan, which replaced our 2001 Stock Plan, and the 2010 Employee Stock Purchase Plan. The 2010 Equity Incentive
Plan authorizes the award of stock options, restricted stock awards, stock appreciation rights, restricted stock units,
performance shares and stock bonuses. Options granted under the 2010 Equity Incentive Plan generally vest over
four years and expire five years or ten years from the date of grant. The 2010 Employee Stock Purchase Plan enables
eligible employees to purchase shares of our Class A common stock periodically at a discount. Our 2010 Employee
Stock Purchase Plan is intended to qualify as an employee stock purchase plan under Section 423 of the Internal
Revenue Code.
We reserved 2,000,000 shares and 200,000 shares of our Class A common stock for issuance under our 2010
Equity Incentive Plan and 2010 Employee Stock Purchase Plan, respectively. The number of shares reserved for
issuance under our 2010 Equity Incentive Plan and our 2010 Employee Stock Purchase Plan automatically increase
on the first day of January of each of 2011 through 2014 and 2011 through 2018, respectively, by up to a number of
shares equal to 3% and 1%, respectively, of the total outstanding shares our Class A and Class B common stock as
of the immediately preceding December 31st. Our board of directors or its compensation committee may reduce the
amount of the annual increase under the 2010 Equity Incentive Plan or 2010 Employee Stock Purchase Plan in any
particular year. Options granted under the 2010 Equity Incentive Plan generally vest over four years and expire five
or ten years from the date of grant.
Stock-based compensation for the years ended December 31, 2012, 2011, and 2010 includes expense related to
awards of stock options and restricted stock units and purchases under the 2010 Employee Stock Purchase Plan.
Total stock-based compensation expense and the portion of income tax expense recognized as part of stock-based
compensation is as follows:
Year Ended December 31,
2012 2011 2010
(In thousands)
Total stock-based compensation expense $12,734 $9,524 $7,256
Total income tax expense recognized as part of stock-based
compensation $1,465 $1,890 $1,281
Options and restricted stock units granted on or after July 21, 2010 are issued under the 2010 Equity Incentive
Plan and options granted prior to July 21, 2010 were issued under the 2001 Stock Plan, the predecessor to our 2010
Equity Incentive Plan. We have reserved shares of our Class A common stock and Class B common stock for issuance
under the 2010 Equity Incentive Plan and 2001 Stock Plan, respectively.
The following table summarizes stock options and restricted stock units granted:
Year Ended December 31,
2012 2011 2010
(In thousands, except per share data)
Stock options granted 2,247 889 349
Weighted-average exercise price $19.35 $38.70 $32.38
Weighted-average grant-date fair value $8.92 $18.62 $15.66
Restricted stock units granted 613 111 —
Weighted-average grant-date fair value $14.14 $33.46 $—