Hess 2008 Annual Report Download - page 75

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Share-based compensation expense consists of the following:
2008 2007 2008 2007
Before Taxes After Taxes
(Millions of dollars)
Stock options ........................................... $51 $36 $31 $23
Restricted stock ......................................... 68 51 43 31
Total ................................................. $119 $87 $74 $54
Based on restricted stock and stock option awards outstanding at December 31, 2008, unearned compensation
expense, before income taxes, will be recognized in future years as follows (in millions): 2009 — $92, 2010 — $56
and 2011 — $6.
The Corporation’s stock option and restricted stock activity consisted of the following:
Options
Weighted-
Average
Exercise Price
per Share
Shares of
Restricted
Common
Stock
Weighted-
Average
Price on Date
of Grant
Stock Options Restricted Stock
(Thousands) (Thousands)
Outstanding at January 1, 2006................. 11,451 $24.09 4,363 $22.32
Granted ................................ 2,853 49.46 984 50.40
Exercised ............................... (1,283) 22.96 — —
Vested ................................. — — (237) 22.78
Forfeited ............................... (98) 40.07 (66) 30.24
Outstanding at December 31, 2006 .............. 12,923 29.68 5,044 27.68
Granted ................................ 3,066 53.82 1,032 53.92
Exercised ............................... (4,566) 24.07 — —
Vested ................................. — — (1,184) 24.53
Forfeited ............................... (131) 46.41 (91) 36.40
Outstanding at December 31, 2007 .............. 11,292 38.31 4,801 33.93
Granted ................................ 2,473 82.55 1,289 84.45
Exercised ............................... (3,852) 29.17 — —
Vested ................................. — — (2,787) 21.40
Forfeited ............................... (213) 60.61 (142) 58.60
Outstanding at December 31, 2008 .............. 9,700 52.73 3,161 64.47
Exercisable at December 31, 2006 .............. 6,832 $22.08
Exercisable at December 31, 2007 .............. 5,408 27.34
Exercisable at December 31, 2008 .............. 4,522 36.95
59
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)