| Share-Based Payment > Best Practice Series |
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Alternative Forms
of Equity Compensation - Dow 30 for FY2013 |
www.fintools.com |
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PC |
PC |
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Price |
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| Symbol |
Company Name |
ESOs |
SARs |
ESPP |
RSAs |
RSUs |
RS |
Cash |
TSR |
Target |
Comments |
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| MMM |
3M Co |
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 = $101.57 |
| AXP |
American
Express Co |
x |
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x |
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x |
x |
x |
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Performance Condition Restricted Stock FV(Fair
Value) = $60.13 |
| T |
AT&T
Inc. |
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x |
x |
x |
x |
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Grants Performance Stock Units that settle
either in form common stock or cash |
| BA |
Boeing
Co/The |
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 FV
= $75.97 |
| CAT |
Caterpillar
Inc. |
x |
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x |
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x |
x |
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Restricted Stock Units FV= Stock Price -
Present Value of Expected Dividends to be paid during vesting, RSU FV =
$84.05 |
| CVX |
Chevron
Corp |
x |
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x |
x |
x |
Currently has Performance Units outstanding and
granted in 2013 |
| 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= $18.52; |
| KO |
Coca-Cola
Co/The |
x |
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x |
x |
x |
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Service Condition and Performance-based
Restricted Stock; Performance Share Unit Awards |
| DD |
EI du
Pont de Nemours & 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= $48.06; Cash-based
Awards |
| XOM |
Exxon
Mobil Corp |
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x |
x |
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Has not granted stock options since 2003,
Restricted Stock Units FV = $87.24 |
| GE |
General
Electric Co |
x |
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x |
x |
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Restricted Stock Units issued only settle with
equity, Restricted Stock Units FV = $24.54 |
| GS |
Goldman
Sachs Group Inc./The |
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x |
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x |
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Restricted Stock Units FV = $122.59 |
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| HD |
Home
Depot Inc./The |
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 FV = $68.44 |
| INTC |
Intel
Corp |
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 = $21.45; ESPP= 85% of FMV |
| IBM |
International
Business Machines Corp |
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x |
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x |
x |
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ESPP at 95% FV, RSU/Performance Share Units FV
= $189/195 |
| JNJ |
Johnson
& Johnson |
x |
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x |
x |
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x |
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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 |
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x |
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x |
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Restricted Stock Units FV = $46.92 |
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| MCD |
McDonald's
Corp |
x |
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x |
x |
x |
x |
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Restricted Stock Units based on Company
Performance Metrics |
| MRK |
Merck
& Co Inc. |
x |
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x |
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x |
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Restricted Stock Units FV = $45.04; Performance
Stock Unit FV = $38.25 |
| MSFT |
Microsoft
Corp |
x |
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x |
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x |
x |
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LASs replaced SPSA in fiscal year 2013; Target
Cash Award replaced the RSUs. |
| NKE |
NIKE
Inc. |
x |
x |
x |
x |
x |
x |
x |
x |
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Restricted Stock Units FV= $46.86 |
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| PFE |
Pfizer
Inc. |
x |
x |
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x |
x |
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x |
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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 |
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x |
x |
x |
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Performance Stock Awards also have three year
vesting condition |
| TRV |
Travelers
Cos Inc./The |
x |
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x |
x |
x |
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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 |
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x |
x |
x |
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PC Awards FV = $84.03,Stock Appreciation
Right=$86.87 |
| UNH |
UnitedHealth
Group Inc |
x |
x |
x |
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x |
x |
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Restricted Stock Units FV = $58 |
Restricted Stock Units Fair Value = $52 |
| VZ |
Verizon
Communications Inc. |
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x |
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x |
x |
x |
x |
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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 |
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x |
x |
x |
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x |
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Restricted Stock Units FV = $146.18,Restricted
Stock Awards FV = $147.18 |
| 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 = $76.05, RSA and PSA settle in stock or cash |
| DIS |
Walt
Disney Co/The |
x |
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x |
x |
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Restricted Stock Units FV = $50.92; 3 year
Service Condition, subject to achieving Market or Performance Conditions |
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Total Dow 30 Granted |
24 |
6 |
8 |
8 |
24 |
23 |
15 |
15 |
1 |
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Dow 30 Participation Rate |
80% |
20% |
27% |
27% |
80% |
77% |
50% |
50% |
3% |
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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 |
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 FY2013 |
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| Prepared by:
Yingwen Chen and Chunhui Hao |
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| Date: October
31, 2014 |
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| © Montgomery
Investment Technology, Inc. |
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