Microsoft 2014 Annual Report Download - page 76

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75
Executive incentive plan
Under the Executive Incentive Plan (“EIP”), the Compensation Committee awards performance-based compensation
comprising both cash and SAs to executive officers and certain senior executives. For executive officers, their awards are
based on an aggregate incentive pool equal to a percentage of consolidated operating income. For fiscal years 2014,
2013, and 2012, the pool was 0.44%, 0.35%, and 0.30% of operating income, respectively. The SAs vest ratably in
August of each of the four years following the grant date. The final cash awards will be determined after each
performance period based on individual and business performance.
Activity for all stock plans
The fair value of each award was estimated on the date of grant using the following assumptions:
Y
ear Ended June 30, 2014 2013 2012
Dividends per share (quarterly amounts) $ 0.23 - $ 0.28 $ 0.20 - $ 0.23 $ 0.16 - $ 0.20
Interest rates range 1.3% - 1.8% 0.6% - 1.1% 0.7% - 1.7%
During fiscal year 2014, the following activity occurred under our stock plans:
Shares
Weighted
Average
Grant-Date
Fair Value
(In millions)
Stock Awards
Nonvested balance, beginning of year 273 $ 25.50
Granted (a) 103 $ 31.50
Vested (93) $ 25.12
Forfeited (24) $ 27.01
Nonvested balance, end of year 259 $ 27.88
(a) Includes four million shares in stock replacement awards related to the acquisition of NDS. The weighted average
grant-date fair value was $37.64.
As of June 30, 2014, there was approximately $5.2 billion of total unrecognized compensation costs related to stock
awards. These costs are expected to be recognized over a weighted average period of 3 years.
During fiscal years 2013 and 2012, the following activity occurred under our stock plans:
(In millions, except fair values) 2013 2012
Stock Awards
Awards granted 104 110
Weighted average grant-date fair value $ 28.37 $ 24.60
Total vest-date fair value of stock awards vested was $3.2 billion, $2.8 billion, and $2.4 billion, for fiscal years 2014, 2013,
and 2012, respectively.