X hits on this document

PDF document

Prudential Financial 2001 Annual Report - page 135 / 172

434 views

0 shares

0 downloads

0 comments

135 / 172

Prudential Financial, Inc.

Notes to Consolidated Financial Statements

15.

Stock Options (continued)

Non-employee Stock Option Grants The Company applies SFAS No. 123 “Accounting for Stock Based Compensation” in accordance with Emerging Issues Task Force Issue No. 96-18 “Accounting for Equity Instruments That Are Issued to Other Than Employees” and related interpretations in accounting for its non-employee stock options.

The compensation expense recognized for stock based non-employee compensation awards was $270 thousand for the period December 18, 2001 through December 31, 2001.

The fair value of each option is estimated on the balance sheet date for non-vested options and on the vesting date for vested options using a Black-Scholes option-pricing model with the following weighted average assumptions used for grants in 2001:

Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expected life of stock option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2001

1% 37%

    • 4.07

      %

    • 3.95

      years

The dividend yield reflects the assumption that the current dividend payout will continue with no anticipated increases.

(Shares in thousands)

Shares

Weighted Average Exercise Price

Outstanding at the beginning of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transferred from employee status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

773,760 (1,920) 41,760

$— 27.50 27.50 27.50

Outstanding at the end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Options exercisable at the end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Weighted average balance sheet date fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

813,600 1,200

$27.50 $27.50 $12.77

A summary of the status of the Company’s non-employee stock option grants at December 31 and changes during the year ended is presented below:

2001

There were no significant modifications to non-employee options outstanding for the year.

The following table summarizes information about the non-employee stock options outstanding at December 31, 2001:

Options Outstanding

Options Exercisable

(Shares in thousands) Exercise price ($27.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number Outstanding

813,600

Weighted Average Remaining

Contractual

Life 9.94

Number Exercisable

Weighted Average Exercise Price

1,200

$27.50

Weighted Average

Exercise

Price $27.50

Prudential Financial 2001 Annual Report

133

Document info
Document views434
Page views436
Page last viewedThu Dec 08 16:53:22 UTC 2016
Pages172
Paragraphs6423
Words154936

Comments