Bank of America 2007 Annual Report Download - page 161

Key Employee Stock Plan
The Key Employee Stock Plan, as amended and restated, provided for dif-
ferent types of awards. These include stock options, restricted stock
shares and restricted stock units. Under the Plan, ten-year options to
purchase approximately 260 million shares of common stock were granted
through December 31, 2002, to certain employees at the closing market
price on the respective grant dates. Options granted under the Plan gen-
erally vest in three or four equal annual installments. At December 31,
2007, approximately 57 million options were outstanding under this Plan.
No further awards may be granted.
Key Associate Stock Plan
On April 24, 2002, the shareholders approved the Key Associate Stock
Plan to be effective January 1, 2003. This approval authorized and
reserved 200 million shares for grant in addition to the remaining amount
under the Key Employee Stock Plan as of December 31, 2002, which was
approximately 34 million shares plus any shares covered by awards under
the Key Employee Stock Plan that terminate, expire, lapse or are cancelled
after December 31, 2002. Upon the FleetBoston merger, the shareholders
authorized an additional 102 million shares and on April 26, 2006, the
shareholders authorized an additional 180 million shares for grant under
the Key Associate Stock Plan. At December 31, 2007, approximately
151 million options were outstanding under this plan. Approximately
18 million shares of restricted stock and restricted stock units were
granted in 2007. These shares of restricted stock generally vest in three
equal annual installments beginning one year from the grant date.
The following table presents the status of all option plans at
December 31, 2007, and changes during 2007:
Employee stock options
December 31, 2007
Shares
Weighted
Average Exercise
Price
Outstanding at January 1, 2007
245,073,170 $36.89
Granted 34,253,805 53.83
Exercised (45,434,338) 35.56
Forfeited (5,232,588) 46.09
Outstanding at December 31,
2007 (1) 228,660,049 39.49
Options exercisable at December 31,
2007
168,956,467 35.86
Options vested and expected to vest
(2)
227,941,654 39.45
(1) Includes 57 million options under the Key Employee Stock Plan, 151 million options under the Key
Associate Stock Plan and 20 million options to employees of predecessor companies assumed in
mergers.
(2) Includes vested shares and nonvested shares after a forfeiture rate is applied.
At December 31, 2007, the aggregate intrinsic value of options out-
standing, exercisable, and vested and expected to vest was $1.1 billion.
The weighted average remaining contractual term of options outstanding
was 5.6 years, of options exercisable was 4.6 years, and of options
vested and expected to vest was 5.6 years at December 31, 2007.
The weighted average grant-date fair value of options granted in
2007, 2006 and 2005 was $8.44, $6.90 and $6.48, respectively. The
total intrinsic value of options exercised in 2007 was $717 million.
The following table presents the status of the restricted stock/unit
awards at December 31, 2007, and changes during 2007:
Restricted stock/unit awards
December 31, 2007
Shares
Weighted
Average Grant
Date Fair Value
Outstanding at January 1, 2007
31,589,342 $43.85
Granted 18,213,053 53.82
Vested (15,499,957) 44.53
Cancelled (2,480,714) 49.26
Outstanding at December 31, 2007 31,821,724 48.80
At December 31, 2007, there was $696 million of total unrecognized
compensation cost related to share-based compensation arrangements for
all awards that is expected to be recognized over a weighted average
period of 0.93 years. The total fair value of restricted stock vested in
2007 was $810 million.
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