Bank of America 2005 Annual Report Download - page 181

BANK OF AMERICA CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements—(Continued)
The Corporation has certain stock-based compensation plans that were not approved by its shareholders. These
broad-based plans are the 2002 Associates Stock Option Plan and Take Ownership!. Descriptions of the material
features of these plans follow.
2002 Associates Stock Option Plan
The Bank of America Corporation 2002 Associates Stock Option Plan covered all employees below a specified
executive grade level. Under the plan, eligible employees received a one-time award of a predetermined number of
options entitling them to purchase shares of the Corporation’s common stock. All options are nonqualified and have an
exercise price equal to the fair market value on the date of grant. Approximately 108 million options were granted on
February 1, 2002. The award included two performance-based vesting triggers. During 2003, the first option vesting
trigger was achieved. During 2004, the second option vesting trigger was achieved. In addition, the options continue to
be exercisable following termination of employment under certain circumstances. At December 31, 2005, approximately
20 million options were outstanding under this plan. The options expire on January 31, 2007. No further awards may be
granted.
Take Ownership!
The Bank of America Global Associate Stock Option Program (Take Ownership!) covered all employees below a
specified executive grade level. Under the plan, eligible employees received an award of a predetermined number of stock
options entitling them to purchase shares of the Corporation’s common stock at the fair market value on the grant date.
Options were granted on the first business day of 1999, 2000 and 2001. All options are nonqualified. At January 2, 2004,
all options issued under this plan were fully vested. These options expire five years after the grant date. In addition, the
options continue to be exercisable following termination of employment under certain circumstances. At December 31,
2005, approximately 134 thousand options were outstanding under this plan. No further awards may be granted. All
remaining options expired January 2, 2006.
Additional stock option plans assumed in connection with various acquisitions remain outstanding and are included
in the following tables. No further awards may be granted under these plans. The following tables present the status of
all plans at December 31, 2005, 2004 and 2003, and changes during the years then ended:
2005 2004 2003
Employee stock options Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
Outstanding at January 1 .............. 337,551,559 $32.93 320,331,380 $30.66 411,447,300 $29.10
Options assumed through acquisition .... ——78,761,708 28.68 — —
Granted ............................. 35,615,891 46.58 63,472,170 40.80 61,336,790 35.03
Exercised ............................ (68,206,402) 29.89 (111,958,135) 27.77 (132,491,842) 27.72
Forfeited ............................. (6,828,246) 38.59 (13,055,564) 34.15 (19,960,868) 31.41
Outstanding at December 31 ..... 298,132,802 35.13 337,551,559 32.93 320,331,380 30.66
Options exercisable at December 31 ..... 213,326,486 32.41 243,735,846 30.73 167,786,372 30.02
Weighted average fair value of options
grantedduringtheyear .............. $6.48 $ 5.59 $ 6.77
2005 2004 2003
Restricted stock/unit awards Shares
Weighted
Average
Grant
Price Shares
Weighted
Average
Grant
Price Shares
Weighted
Average
Grant
Price
Outstanding unvested grants at
January 1 .......................... 20,449,565 $37.12 16,170,546 $31.64 15,679,946 $30.37
Share obligations assumed through
acquisition ......................... ——7,720,476 31.62 — —
Granted ............................. 17,599,740 46.60 10,338,327 41.03 8,893,718 34.69
Vested ............................... (9,409,844) 37.48 (12,031,945) 29.43 (7,697,576) 32.47
Canceled ............................. (1,361,355) 43.49 (1,747,839) 38.10 (705,542) 32.85
Outstanding unvested grants at
December 31 .................. 27,278,106 $42.79 20,449,565 $37.12 16,170,546 $31.64
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