Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Components of Stock-Based Compensation Expense

The components of stock-based compensation expense are as follows:

(in millions)	2020		2019		2018
Stock-based compensation:
Restricted stock and RSUs	$	593	$	532	$	514
Long-term incentive plans to be funded by PNC⁽¹⁾		—		—		14
Stock options		29		35		36
Total stock-based compensation	$	622	$	567	$	564

(1)	The PNC Financial Services Group, Inc. (“PNC”)

Restricted Stock and RSU Activity

Restricted stock and RSU activity for 2020 is summarized below.

Outstanding at	Restricted Stock and RSUs			Weighted- Average Grant Date Fair Value
December 31, 2019		2,236,452		$	444.02
Granted		969,095		$	533.31
Converted		(981,385	)	$	429.48
Forfeited		(84,232	)	$	477.29
December 31, 2020		2,139,930		$	489.81

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:

	2020		2019		2018
Awards granted that vest ratably over three years from the date of grant		504,403		674,206		527,337
Awards granted that cliff vest 100% on:
January 31, 2021		—		—		209,201
January 31, 2022		—		377,291		—
January 31, 2023		393,161		—		—
		897,564		1,051,497		736,538

Performance-Based RSUs [Member]

Restricted Stock and RSU Activity

Performance-based RSU activity for 2020 is summarized below.

Outstanding at	Performance- Based RSUs			Weighted- Average Grant Date Fair Value
December 31, 2019		742,918		$	436.84
Granted		238,478		$	533.58
Additional shares granted due to attainment of performance measures		30,600		$	375.26
Converted		(311,779	)	$	375.26
December 31, 2020		700,217		$	494.51

Performance-Based Stock Options [Member]

Stock Option Activity

Stock option activity for 2020 is summarized below.

Outstanding at	Shares Under Option			Weighted Average Exercise Price
December 31, 2019		1,941,145		$	513.50
Forfeited		(25,353	)	$	513.50
December 31, 2020		1,915,792		$	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