Stock-Based Plans

3 Months Ended

Mar. 31, 2013

Stock-Based Plans

Stock-Based Plans

(11) The company’s executive and director stock-based compensation plans are described, and informational disclosures provided, in the Notes to Consolidated Financial Statements included in the Form 10-K for the year ended December 31, 2012. In the first quarter of 2013 and 2012, restricted stock units of 453,185 and 366,033, respectively, were granted to executives and directors at weighted-average per share prices of $61.43 and $62.50, respectively. For the company’s executives, the restricted units and shares granted in 2013 and 2012 vest ratably over three years. For the company’s directors, the restricted units and shares granted in 2013 and 2012 vest or vested on the first anniversary of the grant. During the first quarter of 2013 and 2012, options for the purchase of 884,574 shares at a weighted-average exercise price of $61.45 per share and 641,817 shares at a weighted-average exercise price of $62.50 per share, respectively, were awarded to executives. The options granted in 2013 and 2012 vest ratably over three years. The options expire ten years after the grant date. In the first quarter of 2013 and 2012, performance-based Value Driver Incentive (“VDI”) units totaling 385,742 and 329,289, respectively, were granted to executives at weighted-average per share prices of $61.45 and $62.50, respectively. The number of units is adjusted at the end of each performance period based on the achievement of performance criteria. The VDI awards granted in 2013 vest after a period of approximately three years. The VDI awards granted in 2012 vest on the first and third anniversaries of the date of grant.