Stock-Based Compensation (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Components of Stock-Based Compensation Expense |
The components of stock-based compensation expense are as follows:
|
(in millions) |
2019 |
|
|
2018 |
|
|
2017 |
|
|
Stock-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
Restricted stock and RSUs |
$ |
532 |
|
|
$ |
514 |
|
|
$ |
524 |
|
|
Long-term incentive plans to be funded by PNC |
|
— |
|
|
|
14 |
|
|
|
15 |
|
|
Stock options |
|
35 |
|
|
|
36 |
|
|
|
3 |
|
|
Total stock-based compensation |
$ |
567 |
|
|
$ |
564 |
|
|
$ |
542 |
|
|
| Restricted Stock and RSU Activity |
Restricted stock and RSU activity for 2019 is summarized below.
|
Outstanding at |
Restricted
Stock and
RSUs |
|
|
Weighted-
Average
Grant Date
Fair Value |
|
|
December 31, 2018 |
|
2,139,890 |
|
|
$ |
429.19 |
|
|
Granted |
|
1,226,249 |
|
|
$ |
414.41 |
|
|
Converted |
|
(1,047,423 |
) |
|
$ |
379.85 |
|
|
Forfeited |
|
(82,264 |
) |
|
$ |
434.02 |
|
|
December 31, 2019(1) |
|
2,236,452 |
|
|
$ |
444.02 |
|
|
(1) |
At December 31, 2019, approximately 2.0 million awards are expected to vest and 0.2 million awards have vested but have not been converted. |
|
| Summary of RSUs/Restricted Stock Granted in Connection with Annual Incentive Compensation under Award Plan |
RSUs/restricted stock granted in connection with annual incentive compensation under the Award Plan primarily related to the following:
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
Awards granted that vest ratably over three years from the date of grant |
|
674,206 |
|
|
|
527,337 |
|
|
|
699,991 |
|
|
Awards granted that cliff vest 100% on: |
|
|
|
|
|
|
|
|
|
|
|
|
January 31, 2020 |
|
— |
|
|
|
— |
|
|
|
277,313 |
|
|
January 31, 2021 |
|
— |
|
|
|
209,201 |
|
|
|
— |
|
|
January 31, 2022 |
|
377,291 |
|
|
|
— |
|
|
|
— |
|
|
|
|
1,051,497 |
|
|
|
736,538 |
|
|
|
977,304 |
|
|
| Performance-Based RSUs [Member] |
|
| Restricted Stock and RSU Activity |
Performance-based RSU activity for 2019 is summarized below.
|
Outstanding at |
Performance-
Based RSUs |
|
|
Weighted-
Average
Grant Date
Fair Value |
|
|
December 31, 2018 |
|
845,285 |
|
|
$ |
386.13 |
|
|
Granted |
|
283,014 |
|
|
$ |
410.32 |
|
|
Additional shares granted due to attainment of performance measures |
|
2,117 |
|
|
$ |
296.57 |
|
|
Converted |
|
(360,927 |
) |
|
$ |
296.57 |
|
|
Forfeited |
|
(26,571 |
) |
|
$ |
435.33 |
|
|
December 31, 2019 |
|
742,918 |
|
|
$ |
436.84 |
|
|
| Performance-Based Stock Options [Member] |
|
| Stock Option Activity |
Stock option activity for 2019 is summarized below.
|
Outstanding at |
Shares
Under
Option |
|
|
Weighted
Average
Exercise
Price |
|
|
December 31, 2018 |
|
2,106,482 |
|
|
$ |
513.50 |
|
|
Forfeited |
|
(165,337 |
) |
|
$ |
513.50 |
|
|
December 31, 2019 |
|
1,941,145 |
|
|
$ |
513.50 |
|
|
| Schedule of Fair Value of Market Performance-Based Award at Grant Date |
The grant-date fair value of the awards issued in 2017 was $208 million and was estimated using a Monte Carlo simulation with an embedded lattice model using the assumptions included in the following table:
|
Grant
Year |
|
Expected Term (Years) |
|
Expected Stock Volatility |
|
Expected Dividend Yield |
|
Risk-Free Interest Rate |
|
|
2017 |
|
6.56 |
|
22.23 |
% |
2.16 |
% |
2.33 |
% |
|