Share-Based Payment > Best Practice Series Alternative Forms of Equity Compensation - Dow 30 for FY2013 www.fintools.com
PC PC Price
Symbol Company Name ESOs SARs ESPP RSAs RSUs RS Cash TSR Target Comments
MMM 3M Co x x x x x x Reload Options, Performance Criteria Factors: Sales Growth, ROI Capital and new product sales, ESPP 85%, RSU FV = $101.57
AXP American Express Co x     x   x x x   Performance Condition Restricted Stock FV(Fair Value) = $60.13
T AT&T Inc. x x x x Grants Performance Stock Units that settle either in form common stock or cash
BA Boeing Co/The x       x   x     Performance Condition Awards (cash units)initial value: $100 and payout from $0-$200, Restricted Stock Units FV = $75.97
CAT  Caterpillar Inc. x x x x Restricted Stock Units FV= Stock Price - Present Value of Expected Dividends to be paid during vesting, RSU FV = $84.05
CVX Chevron Corp x           x x x Currently has Performance Units outstanding and granted in 2013
CSCO Cisco Systems Inc. x x x x x ESPP allows employee purchase stock at a discount up to 15%, exp div = 1.5%, RSA/U FV= $18.52;
KO Coca-Cola Co/The x     x x x       Service Condition and Performance-based Restricted Stock; Performance Share Unit Awards
DD EI du Pont de Nemours & Co x x x Performance Condition Awards based on corp rev growth relative to peers, using Monte Carlo, TSR/RSU FV= $48.06; Cash-based Awards
XOM Exxon Mobil Corp       x x         Has not granted stock options since 2003, Restricted Stock Units FV = $87.24
GE General Electric Co x x x Restricted Stock Units issued only settle with equity, Restricted Stock Units FV = $24.54
GS Goldman Sachs Group Inc./The         x   x     Restricted Stock Units FV = $122.59  
HD Home Depot Inc./The x x x ESPP sold at 85% of market value, Restricted Stock Units / Performance Condition Units FV = $68.44
INTC  Intel Corp x   x   x x   x   Relative TSR vs Peer Group 3 year period, RSU FV calculated w/ Monte Carlo, RSU FV = $21.45; ESPP= 85% of FMV
IBM International Business Machines Corp x x x ESPP at 95% FV, RSU/Performance Share Units FV = $189/195
JNJ Johnson & Johnson x       x x   x   Restricted Stock Units FV = $65.90; Relative TSR was estimated on the date of grant using the Monte Carlo valuation method
JPM JPMorgan Chase & Co x x x Restricted Stock Units FV = $46.92
MCD McDonald's Corp x       x x x x   Restricted Stock Units based on Company Performance Metrics
MRK Merck & Co Inc. x x x Restricted Stock Units FV = $45.04; Performance Stock Unit FV = $38.25
MSFT Microsoft Corp x   x     x x     LASs replaced SPSA in fiscal year 2013; Target Cash Award replaced the RSUs. 
NKE NIKE Inc. x x x x x x x x Restricted Stock Units FV= $46.86 
PFE Pfizer Inc. x x     x x   x   RSUs FV= $27.39; PPSs(Portfolio Performance Shares) FV=$27.37, TSRs FV= $5.14; and PSAs(Performance Share Awards) FV= $40.00 
PG Procter & Gamble Co/The x x x x Performance Stock Awards also have three year vesting condition
TRV Travelers Cos Inc./The x       x x x     Performance awards are based on adjusted return on equity, perf awards 50%-130%, RSU FV = $79.00 / Reload Feature
UTX  United Technologies Corp x x x x x PC Awards FV = $84.03,Stock Appreciation Right=$86.87
UNH UnitedHealth Group Inc x x x   x x       Restricted Stock Units FV = $58 Restricted Stock Units Fair Value = $52
VZ Verizon Communications Inc. x x x x x RSU has 3 year Service Condition, Performance Stock Units paid in cash upon vesting, Restricted Stock Units Fair Value = $47.96
V Visa Inc. x     x x x   x   Restricted Stock Units FV = $146.18,Restricted Stock Awards FV = $147.18
WMT Wal-Mart Stores Inc. x x x x x Performance Awards range from 0%-150% of original amount, RSA FV = $76.05, RSA and PSA settle in stock or cash
DIS Walt Disney Co/The x       x x       Restricted Stock Units FV = $50.92; 3 year Service Condition, subject to achieving Market or Performance Conditions
Total Dow 30 Granted 24 6 8 8 24 23 15 15 1
Dow 30 Participation Rate 80% 20% 27% 27% 80% 77% 50% 50% 3%
Key
ESOs: Employee Stock Options ESPP: Employee Stock Purchasing Plan RSUs: Restricted Stock Units / Service Condition PC Cash: Cash-settled Performance Condition TSR: Relative Total Shareholder Return
SARs: Stock Appreciation Rights RSAs: Restricted Stock Awards PC RS: Stock-settled Performance Condition PC Both: Both Stock and Cash-settled Performance Condition Price Target: Absolute Total Shareholder Return 
Source: Company 10-K Reports and DEF 14As for FY2013
Prepared by: Yingwen Chen and Chunhui Hao
Date: October 31, 2014
© Montgomery Investment Technology, Inc.