Stock-Based Compensation

3 Months Ended

Sep. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

(11)Stock-Based Compensation

At September 30, 2011, Greene County Bancorp, Inc. had one stock-based compensation plan, which is described more fully in Note 9 of the consolidated financial statements and notes thereto for the year ended June 30, 2011.

The Company recognized $19,000 and $56,000 in compensation costs and related income tax benefit of $6,000 and $17,000 related to the 2008 Option Plan for the quarters ended September 30, 2011 and 2010, respectively.  At September 30, 2011, all granted shares were fully vested, with no remaining compensation cost to be recognized.

A summary of the Company's stock option activity and related information for its option plans for the three months ended September 30, 2011 and 2010 is as follows:

	2011		2010
		Weighted Average		Weighted Average
		Exercise		Exercise
		Price		Price
	Shares	Per Share	Shares	Per Share
Outstanding at beginning of year	144,834	$12.50	171,750	$12.36
Exercised	---	---	(4,333)	12.50
Outstanding at period end	144,834	$12.50	167,417	$12.36
Exercisable at period end	144,834	$12.50	112,587	$12.29

The following table presents stock options outstanding and exercisable at September 30, 2011:

Options Outstanding and Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$12.50	144,834	7.00	$12.50

There were no options exercised during the three months ended September 30, 2011. The total intrinsic value of the options exercised during the three months ended September 30, 2010, was approximately $15,000. There were no stock options granted during the three months ended September 30, 2011 or 2010.  The Company had no non-vested options outstanding at September 30, 2011 and 54,830 non-vested options outstanding at September 30, 2010.

Phantom Stock Option Plan and Long-term Incentive Plan

On July 12, 2011, Greene County Bancorp, Inc. (the "Company") entered into the Greene County Bancorp, Inc. 2011 Phantom Stock Option and Long-term Incentive Plan (the "Plan"), effective as of July 1, 2011, to promote the long-term financial success of the Company and its subsidiaries by providing a means to attract, retain and reward individuals who contribute to such success and to further align their interests with those of the Company's shareholders.  The Plan is intended to provide benefits to employees and directors of the Company or any subsidiary as designated by the Compensation Committee of the Board of Directors of the Company ("Committee").   A total of 900,000 phantom stock options will be available for awards under the Plan.  A phantom stock option represents the right to receive a cash payment on the date the award vests in the participant equal to the positive difference between the strike price on the grant date and the book value of a share of the Company stock on the determination date, which is the last day of the plan year that is the end of the third plan year after the grant date of the award, unless otherwise specified by the Committee.  The strike price will be the price established by the Committee, which will not be less than 100% of the book value of a share on a specified date, as determined under generally accepted accounting principles (GAAP) as of the last day of the quarter ending on or immediately preceding the valuation date with adjustments made, in the sole discretion of the Committee, to exclude accumulated other comprehensive income.  During the three months ended September 30, 2011, 235,350 phantom stock options were awarded under the plan.  The Company recognized $67,800 in compensation costs related to the phantom stock option plan during the three months ended September 30, 2011.