| Share-Based Payment > Best Practice Series |
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Alternative Forms
of Equity Compensation - Dow 30 for FY2012 |
www.fintools.com |
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PC |
PC |
PC |
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Price |
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| Symbol |
Company Name |
ESOs |
SARs |
ESPP |
RSAs |
RSUs |
RS |
Cash |
Option |
TSR |
Target |
Comments |
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| AA |
Alcoa
Inc. |
x |
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x |
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Performance Stock Awards also have three year
vesting condition, RSA/PC FV= $10.08 / Reload Feature |
| AXP |
American
Express Company |
x |
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x |
x |
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x |
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Performance Condition Restricted Stock Fair
Value = $49.80 |
| BA |
The
Boeing Company |
x |
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x |
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x |
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Performance Condition Awards (cash
units)initial value: $100 and payout from $0-$200, Restricted Stock Units
Fair Value = $75.40 |
| BAC |
Bank of
America Corporation |
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x |
x |
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x |
x |
x |
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Restricted Stock Units Fair Value: $7.78 /
Company discontinued their ESPP as of 3/31/2012 |
| CAT |
Caterpillar
Inc. |
x |
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x |
x |
x |
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x |
x |
Fair Market Value for Restricted Stock Units =
Stock Price - Present Value of Expected Dividends to be paid during vesting,
RSU FV = $104.61 |
| CSCO |
Cisco
Systems, Inc. |
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x |
x |
x |
x |
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x |
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ESPP allows employee purchase stock at a
discount up to 15%, exp div = 1.5%, RSA/U FV= $17.45; |
| CVX |
Chevron
Corporation |
x |
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x |
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x |
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Currently has Performance Units outstanding and
granted in 2012 |
| DD |
E.I. du
Pont de Nemours and Co |
x |
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x |
x |
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Performance Condition Awards based on corp rev
growth relative to peers, using Monte Carlo, TSR/RSU FV= $47.17; Cash-based
Awards |
| DIS |
The Walt
Disney Company |
x |
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x |
x |
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x |
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Restricted Stock Units Fair Value = $39.39; 3
year Service Condition, subject to achieving Market or Performance
Considtions |
| GE |
General
Electric Company |
x |
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x |
x |
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Restricted Stock Units issued only settle with
equity, Restricted Stock Units Fair Value = $20.79 |
| HD |
The Home
Depot, Inc. |
x |
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x |
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x |
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ESPP sold at 85% of market value, Restricted
Stock Units / Performance Condition Units Fair Value = $49.18 |
| HPQ |
Hewlett-Packard
Company |
x |
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x |
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x |
x |
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x |
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x |
PCRS based on cash flow as a percentage of
revenue and on market condition based on TSR(S&P 3 -year) RSU FV=
$27, ESPP: 95% FMV |
| IBM |
International
Business Machines |
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x |
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x |
x |
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ESPP at 95% FV, RSU/Performance Share Units FV
= $184/185 |
| INTC |
Intel
Corporation |
x |
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x |
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x |
x |
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x |
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Relative TSR vs Peer Group 3 year period, RSU
FV calculated w/ Monte Carlo, RSU FV = $19.86; ESPP= 85% of FMV |
| JNJ |
Johnson
& Johnson |
x |
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x |
x |
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x |
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Restricted Stock Units FV = $58.93; Relative
TSR was estimated on the date of grant using the Monte Carlo valuation method |
| JPM |
JP
Morgan Chase & Co. |
x |
x |
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x |
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x |
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Restricted Stock Units Fair Value = $35.73 |
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| KO |
The
Coca-Cola Company |
x |
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x |
x |
x |
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Service Condition and Performance-based
Restricted Stock; Performance Share Unit Awards |
| MCD |
McDonald's
Corporation |
x |
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x |
x |
x |
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x |
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Restricted Stock Units based on Company
Performance Metrics |
| MMM |
3M
Company |
x |
x |
x |
x |
x |
x |
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x |
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Reload Options, Performance Criteria Factors:
Sales Growth, ROI Capital and new product sales, ESPP 85%, RSU FV = $87.92 |
| MRK |
Merck
& Co., Inc. |
x |
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x |
x |
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x |
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Restricted Stock Units Fair Value = $39.45;
Performance Stock Unit Fair Value = $35.35 |
| MSFT |
Microsoft
Corporation |
x |
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x |
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x |
x |
x |
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Performance Condition Awards grants between
0%-150%, depending on achievement, RSU FV = $24.96, ESPP at 90% market value |
| PFE |
Pfizer
Inc. |
x |
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x |
x |
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x |
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Restricted Stock Units Fair Value = $21.05, TSR
Payout determined by Industry Peer Group, using Monte Carlo |
| PG |
The
Procter & Gamble Company |
x |
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x |
x |
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Performance Stock Awards also have three year
vesting condition |
| T |
AT&T
Inc. |
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x |
x |
x |
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x |
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Grants Performance Stock Units that settle
either in form common stock or cash |
| TRV |
The
Travelers Companies, Inc. |
x |
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x |
x |
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Performance awards are based on adj return on
equity, perf awards 50%-130%, RSU FV = $60.18 / Reload Feature |
| UNH |
UnitedHealth
Group, Inc |
x |
x |
x |
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x |
x |
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Restricted Stock Units Fair Value = $52 |
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| UTX |
United
Technologies Corporation |
x |
x |
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x |
x |
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x |
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PC Awards FV = $74.71,Stock Appreciation
Right=$74.88 |
| VZ |
Verizon
Communications Inc. |
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x |
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x |
x |
x |
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x |
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RSU has 3 year Service Condition, Performance
Stock Units paid in cash upon vesting, Restricted Stock Units Fair Value =
$36.38 |
| WMT |
Wal-Mart
Stores, Inc. |
x |
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x |
x |
x |
x |
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Performance Awards range from 0%-150% of
original amount, RSA FV = $62.13, RSA and PSA settle in stock or cash |
| XOM |
Exxon
Mobil Corporation |
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x |
x |
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Has not granted stock options since 2003,
Restricted Stock Units Fair Value = $79.52 |
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Total Dow 30 Granted |
24 |
6 |
9 |
6 |
25 |
26 |
11 |
1 |
14 |
2 |
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Dow 30 Participation Rate |
80.00% |
20.00% |
30.00% |
20.00% |
83.33% |
86.67% |
36.67% |
3.33% |
46.67% |
6.67% |
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| Key |
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| 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 |
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PC RS: Stock-settled Performance Condition |
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PC Both: Both Stock and Cash-settled
Performance Condition |
Price Target: Absolute Total Shareholder Return |
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| Source:
Company 10-K Reports and DEF 14As for FY2012 |
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| Prepared by:
Hu Li and Scott Michaud, CEP |
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| Date: August
9, 2013 |
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| © Montgomery
Investment Technology, Inc. |
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