Prudential 2007 Annual Report Download - page 153

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
15. SHARE-BASED PAYMENTS (continued)
The weighted average remaining contractual term and the aggregate intrinsic value of stock options outstanding and exercisable as of
December 31, 2007 is as follows:
December 31, 2007
Employee Stock Options Non-employee Stock Options
Weighted
Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
Weighted
Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
(in years) (in millions) (in years) (in millions)
Outstanding .................................. 6.10 $593 5.88 $19
Vested and expected to vest ..................... 5.93 $568 5.56 $18
Exercisable .................................. 5.17 $521 4.52 $16
Restricted Stock Shares, Restricted Stock Units, and Performance Share Awards
A restricted stock share represents a grant of Common Stock to employee and non-employee participants that is subject to certain
transfer restrictions and forfeiture provisions for a specified period of time. A restricted stock unit is an unfunded, unsecured right to
receive a share of Common Stock at the end of a specified period of time, which is also subject to forfeiture and transfer restrictions.
Generally, the restrictions on restricted stock shares and restricted stock units will lapse on the third anniversary of the date of grant.
Restricted stock shares subject to the transfer restrictions and forfeiture provisions are considered nonvested shares and are not reflected as
outstanding shares until the restrictions expire. Performance share awards are awards of units denominated in Common Stock. The number
of units is determined over the performance period, and may be adjusted based on the satisfaction of certain performance goals.
Performance share awards are payable in Common Stock.
A summary of the Company’s employee restricted stock shares, restricted stock units and performance shares is as follows:
Restricted
Stock
Shares
Weighted
Average
Grant
Date Fair
Value
Restricted
Stock
Units
Weighted
Average
Grant
Date Fair
Value
Performance
Shares(1)
Weighted
Average
Grant
Date Fair
Value
Restricted at December 31, 2004................. 2,689,264 $ — 221,951 $ — 726,377 $ —
Granted .................................... — — 1,059,183 56.81 426,958 55.77
Forfeited ................................... (113,659) — (58,006) — (12,183) —
Performance adjustment(2) ..................... — — — — — —
Released .................................... (183,848) — (9,484) — (1,456) —
Restricted at December 31, 2005................. 2,391,757 39.03 1,213,644 53.67 1,139,696 46.63
Granted .................................... — — 1,611,245 76.33 322,764 76.15
Forfeited ................................... (66,292) 44.90 (211,138) 69.89 (17,178) 52.59
Performance adjustment(2) ..................... — — — — 118,467 33.61
Released .................................... (1,393,720) 34.89 (138,751) 37.11 (355,400) 33.61
Restricted at December 31, 2006................. 931,745 44.95 2,475,000 67.96 1,208,349 56.99
Granted .................................... — — 832,530 91.90 307,604 91.75
Forfeited ................................... (6,370) 44.56 (315,213) 79.19 (73,621) 78.62
Performance adjustment(2) ..................... — — — — 235,040 45.04
Released .................................... (908,217) 44.96 (198,956) 58.84 (705,417) 45.04
Restricted at December 31, 2007................. 17,158 $44.37 2,793,361 $74.47 971,955 $72.13
(1) Performance shares reflect the target awarded, reduced for cancellations and vesting to date. The actual number of shares to be awarded at the end of
each performance period will range between 50% and 150% of the target for awards granted in 2005 and 2006, and between 0% and 150% of the target
for awards granted in 2007, based upon a measure of the reported performance for the Company’s Financial Services Businesses relative to stated goals.
(2) Represents additional shares issued based upon the attainment of performance goals for the Company’s Financial Services Businesses.
Prudential Financial 2007 Annual Report 151