KeyBank 2015 Annual Report Download - page 211

The following table summarizes activity, pricing and other information for our stock options for the year ended
December 31, 2015.
Number of
Options
Weighted-Average
Exercise Price Per
Option
Weighted-Average
Remaining Life
(Years)
Aggregate
Intrinsic
Value (a)
Outstanding at December 31, 2014 19,915,556 $ 19.67 3.8 $ 58
Granted 894,900 14.11
Exercised (2,496,965) 8.78
Lapsed or canceled (3,247,043) 34.11
Outstanding at December 31, 2015 15,066,448 $ 18.04 3.8 39
Expected to vest 2,199,240 $ 11.30 7.7 $ 5
Exercisable at December 31, 2015 12,680,764 $ 19.28 3.0 $ 34
(a) The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds the exercise price of the
option. At December 31, 2015, the fair value of the underlying stock was less than the weighted-average exercise price per option.
The weighted-average grant-date fair value of options was $4.33 for options granted during 2015, $5.26 for
options granted during 2014, and $3.55 for options granted during 2013. Stock option exercises numbered
2,496,965 in 2015, 3,050,309 in 2014, and 3,574,354 in 2013. The aggregate intrinsic value of exercised options
was $14 million for 2015, $16 million for 2014, and $13 million for 2013. As of December 31, 2015,
unrecognized compensation cost related to nonvested options under the plans totaled $4 million. We expect to
recognize this cost over a weighted-average period of 2.6 years.
Cash received from options exercised was $22 million, $26 million, and $26 million in 2015, 2014, and 2013,
respectively. The actual tax benefit realized for the tax deductions from options exercised totaled $2 million for
2015, $2 million for 2014, and $1 million for 2013.
Long-Term Incentive Compensation Program
Our Long-Term Incentive Compensation Program (the “Program”) rewards senior executives critical to our long-
term financial success. Awards are granted annually in a variety of forms:
/deferred cash payments that generally vest and are payable at the rate of 25% per year;
/time-lapsed (service condition) restricted stock units payable in stock, which generally vest at the rate of
25% per year;
/performance units payable in stock, which vest at the end of the three-year performance cycle and will not
vest unless Key attains defined performance levels; and
/performance units payable in cash, which vest at the end of the three-year performance cycle and will not
vest unless Key attains defined performance levels.
Performance units vested in 2015 numbered 1,075,082 and were payable in cash. The total fair value of the
performance units that vested in 2015 was $15 million. No performance units were scheduled to vest during
2014; therefore, no corresponding payments were made during that year.
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