Management Stock Plans

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

In April 2010, the Company adopted the UNBC Plan. Under the UNBC Plan, the Company grants restricted stock units settled in ADRs representing shares of common stock of the Company's indirect parent company, MUFG, to key employees at the discretion of the Human Capital Committee of the Board of Directors (the Committee). The Committee determines the number of shares, vesting requirements and other features and conditions of the restricted stock units. Under the UNBC Plan, MUFG ADRs are purchased in the open market upon the vesting of the restricted stock units, through a revocable trust. There is no amount authorized to be issued under the UNBC Plan since all shares are purchased in the open market. These awards generally vest pro-rata on each anniversary of the grant date and generally become fully vested three years from the grant date, provided that the employee has completed the specified continuous service requirement. Generally, the grants vest earlier if the employee dies, is permanently and totally disabled, retires under certain grant, age and service conditions, or terminates employment under certain conditions.

Under the UNBC Plan, the restricted stock unit participants do not have dividend rights, voting rights or other stockholder rights. The grant date fair value of these awards is equal to the closing price of the MUFG ADRs on date of grant.

Effective July 1, 2014, the U.S. branch banking operations of BTMU were integrated under the Bank's operations and the Company assumed the obligations of the HQA Plan. The HQA Plan is substantially similar to the UNBC Plan, however, participants in the HQA Plan are entitled to “dividend equivalent credits” on their unvested restricted stock units when MUFG pays dividends to its shareholders. The credit is equal to the dividends that the participants would have received on the shares had the shares been issued to the participants when the restricted stock units were granted. Accumulated dividend equivalents are paid to participants in cash on an annual basis.

Effective June 8, 2015, MUAH amended and restated the HQA Plan as the MUAH Plan. The MUAH Plan is substantially similar to the UNBC and HQA Plans. The Company's future grants will be made under the MUAH Plan only. "Dividend equivalent credits" arising from grants under the MUAH Plan are paid to participants in shares on an annual basis.

The following table is a summary of the UNBC Plan, HQA Plan and MUAH Plan, which together are presented as the "Stock Bonus Plans":



Grant Date	Units Granted	Fair Value of Stock		Vesting Duration	Pro-rata Vesting Date
April 15, 2014	9,135,710	$	5.40	3 years	April 15
June 1, 2014	194,525	5.63		3 years	June 1
July 10, 2014	56,056	5.91		3 years	July 10
September 15, 2014	46,552	5.80		3 years	September 15
July 15, 2015	11,555,962	7.18		3 years	July 15
July 15, 2015	550,140	7.18		46 months	May 18
August 7, 2015	6,964	7.18		3 years	August 7
December 16, 2015	486,004	6.43		25 months	January 15
March 15, 2016	44,500	4.96		3 years	March 15
March 15, 2016	167,339	4.96		24 months	March 15
June 15, 2016	16,393,770	4.59		3 years	June 15
July 11, 2016	552,941	4.44		3 years	July 11
October 17, 2016	53,375	4.89		28 months	February 15
Dividend equivalent units credited in 2016	655,622	—		—	—

The following table is a rollforward of the restricted stock units under the Stock Bonus Plans for the years ended December 31, 2016 and 2015.



	Restricted Stock Units
	2016		2015
Units outstanding, beginning of year	19,529,395		15,181,027
Activity during the year:
Granted	17,867,547		12,599,070
Vested	(9,901,422	)	(7,476,438	)
Forfeited	(812,128	)	(774,264	)
Units outstanding, end of year	26,683,392		19,529,395

The following table is a summary of the Company's compensation costs, the corresponding tax benefit, and unrecognized compensation costs:



	Years Ended December 31,
(Dollars in millions)	2016		2015		2014
Compensation costs	$	67	$	56	$	34
Tax benefit	26		22		14
Unrecognized compensation costs	96		66		43