Huntington National Bank 2003 Annual Report Download - page 126

Download and view the complete annual report

Please find page 126 of the 2003 Huntington National Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
20. Stock-based Compensation
Huntington sponsors nonqualified and incentive stock option plans. These plans provide for the granting of stock options to officers
and other employees. Huntington’s board of directors has approved all of the plans. Shareholders have approved each of the plans,
except for the broad-based Employee Stock Incentive Plan. Approximately 25.7 million shares have been authorized under the plans, of
which 5.7 million were available for future grants at December 31, 2003. Options that were granted in the most recent six years vest
ratably over three years or when other conditions are met while those granted in 1994 through 1997 vested ratably over four years. All
grants preceding 1994 became fully exercisable after one year. All options granted have a maximum term of ten years.
The fair value of the options granted was estimated at the date of grant using a Black-Scholes option-pricing model. Huntington’s stock
option activity and related information for each of the recent three years ended December 31 is summarized below:
2003 2002 2001
(in thousands, except per share amounts) Options
Weighted-
Average
Exercise
Price Options
Weighted-
Average
Exercise
Price Options
Weighted-
Average
Exercise
Price
Outstanding at Beginning of Year 18,024 $18.93 14,649 $18.70 9,482 $19.26
Granted 3,659 20.38 5,511 18.78 6,820 17.46
Exercised (788) 14.40 (887) 12.79 (606) 9.30
Forfeited/expired (898) 19.32 (1,249) 19.89 (1,047) 21.13
Outstanding at End of Year 19,997 $19.40 18,024 $18.93 14,649 $18.70
Exercisable at End of Year 9,649 $19.60 8,352 $19.62 7,346 $19.34
Weighted-Average Fair Value of Options
Granted During the Year $ 5.64 $ 5.18 $ 4.55
Additional information regarding options outstanding as of December 31, 2003, is as follows:
(in thousands, except per share amounts) Options Outstanding Exercisable Options
Range of Exercise Prices Shares
Weighted-
Average
Remaining
Contractual
Life
(Years)
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price
$10.51 to $15.50 3,220 5.2 $14.52 2,984 $14.49
$15.51 to $20.50 13,921 8.2 19.05 3,876 18.39
$20.51 to $25.50 488 4.9 23.44 421 23.81
$25.51 to $28.35 2,368 5.1 27.26 2,368 27.26
Total 19,997 7.2 $19.40 9,649 $19.60
Included in the above options outstanding, the company has the following options, which were granted to all employees, whose vesting
occurs five years from the date of grant or upon Huntington’s common stock closing for five consecutive trading days at or above a
Vesting Price:
(in thousands, except per share amounts)
Grant Date
Exercise
Price
Shares
Under
Option
Vesting
Date
Vesting
Price
September 4, 2001 $17.99 2,269,600 09/04/2006 $25.00
August 27, 2002 19.94 1,979,250 08/27/2007 27.00
124 HUNTINGTON BANCSHARES INCORPORATED