Stock-Based Compensation (Tables)
|
12 Months Ended |
Dec. 31, 2015 |
|---|
| Components of Stock-Based Compensation Expense |
The components of stock-based compensation expense are as follows:
|
|
|
Year ended December 31, |
|
|
(in millions) |
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
Stock-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted stock and RSUs |
|
$ |
484 |
|
|
$ |
421 |
|
|
$ |
415 |
|
|
Long-term incentive plans to be funded by PNC |
|
|
30 |
|
|
|
32 |
|
|
|
33 |
|
|
Total stock-based compensation |
|
$ |
514 |
|
|
$ |
453 |
|
|
$ |
448 |
|
|
| Restricted Stock and RSU Activity |
Restricted stock and RSU activity for 2015 is summarized below.
|
Outstanding at |
|
Restricted
Stock and
Units |
|
|
Weighted
Average
Grant-Date
Fair Value |
|
|
December 31, 2014 |
|
|
3,401,909 |
|
|
$ |
257.01 |
|
|
Granted |
|
|
1,377,263 |
|
|
$ |
343.49 |
|
|
Converted |
|
|
(1,639,078 |
) |
|
$ |
231.26 |
|
|
Forfeited |
|
|
(72,357 |
) |
|
$ |
306.41 |
|
|
December 31, 2015(1) |
|
|
3,067,737 |
|
|
$ |
308.42 |
|
|
(1) |
At December 31, 2015, approximately 2.8 million awards are expected to vest and 0.2 million awards have vested but have not been converted. |
|
| Summary of RSUs/Restricted Stock Granted under Award Plan |
RSUs/restricted stock granted under the Award Plan primarily related to the following:
|
|
|
Year ended December 31, |
|
|
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
Awards granted as part of annual incentive compensation that vest ratably over three
years from the date of grant |
|
|
952,329 |
|
|
|
1,022,295 |
|
|
|
1,172,381 |
|
|
Awards granted that cliff vest 100% on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
January 31, 2016 |
|
|
— |
|
|
|
— |
|
|
|
370,812 |
|
|
January 31, 2017 |
|
|
— |
|
|
|
287,963 |
|
|
|
— |
|
|
January 31, 2018 |
|
|
303,999 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
1,256,328 |
|
|
|
1,310,258 |
|
|
|
1,543,193 |
|
|
| Stock Option Activity |
Stock option activity for 2015 is summarized below.
|
Outstanding and Exercisable at |
|
Shares
under
option |
|
|
Weighted
average
exercise
price |
|
|
December 31, 2014 |
|
|
906,719 |
|
|
$ |
167.76 |
|
|
Exercised |
|
|
(752,625 |
) |
|
$ |
167.76 |
|
|
December 31, 2015 |
|
|
154,094 |
|
|
$ |
167.76 |
|
The aggregate intrinsic value of options exercised during 2015, 2014 and 2013 was $128 million, $4 million and $19 million, respectively.
|
| Market Performance-based RSUs [Member] |
|
| Restricted Stock and RSU Activity |
Market performance-based RSU activity for 2015 is summarized below.
|
Outstanding at |
|
Market
Performance-
Based RSUs |
|
|
Weighted
Average
Grant-Date
Fair Value |
|
|
December 31, 2014 |
|
|
1,425,319 |
|
|
$ |
137.31 |
|
|
Forfeited |
|
|
(47,142 |
) |
|
$ |
144.27 |
|
|
December 31, 2015(1) |
|
|
1,378,177 |
|
|
$ |
137.07 |
|
|
(1) |
At December 31, 2015, approximately 1.3 million awards are expected to vest and an immaterial amount of awards have vested and have not been converted. |
|
| Schedule of Fair Value of Market Performance-Based Award at Grant Date |
The fair value was calculated using a Monte Carlo simulation with the following assumptions:
|
Grant
Year |
|
Risk-Free
Interest
Rate |
|
|
Performance
Period |
|
|
Expected
Stock
Volatility |
|
|
Expected
Dividend
Yield |
|
|
2013 |
|
|
1.05 |
% |
|
|
6 |
|
|
|
25.85 |
% |
|
|
2.89 |
% |
|
2014 |
|
|
2.05 |
% |
|
|
6 |
|
|
|
27.40 |
% |
|
|
2.42 |
% |
|
| Performance-Based RSUs [Member] |
|
| Restricted Stock and RSU Activity |
Performance-based RSU activity for 2015 is summarized below.
|
Outstanding at |
|
Performance-
Based RSUs |
|
|
Weighted
Average
Grant-Date
Fair Value |
|
|
December 31, 2014 |
|
|
— |
|
|
$ |
— |
|
|
Granted |
|
|
262,847 |
|
|
$ |
343.86 |
|
|
Forfeited |
|
|
(6,979 |
) |
|
$ |
343.86 |
|
|
December 31, 2015 |
|
|
255,868 |
|
|
$ |
343.86 |
|
|