Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Share Based Payment Award Stock Options Valuation Assumptions

The weighted average grant date assumptions used in the binomial option valuation model are as follows:

	2019		2018		2017
Expected volatility	34.63	%	35.39	%	35.29	%
Expected dividend yield	4.26	%	2.88	%	2.84	%
Expected term	5.54 years		5.49 years		5.60 years
Risk-free interest rate	2.50	%	2.64	%	2.06	%

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

The following chart summarizes the compensation cost recognized and the related income tax benefit for stock options, restricted stock units, performance shares and performance units for the years ended December 31: 

	2019				2018				2017
Omnibus Incentive Plan:	Total Compensation Cost Recognized (1)		Income Tax Benefit		Total Compensation Cost Recognized (1)		Income Tax Benefit		Total Compensation Cost Recognized (1)		Income Tax Benefit
	(in millions)
Employee stock options	$	11	$	3	$	13	$	3	$	12	$	5
Employee restricted stock units	149		35		139		32		142		51
Employee performance shares and performance units	71		17		3		1		109		41
Total	$	231	$	55	$	155	$	36	$	263	$	97

__________

(1) Compensation costs related to retirement eligible participants are recorded on the grant date (typically in the first quarter of every year).

	2019
Assurance IQ Acquisition:	Total Compensation Cost Recognized		Income Tax Benefit
	(in millions)
Employee stock options	$	4	$	1
Employee restricted stock units	1		0
Employee performance shares	0		0
Total	$	5	$	1

Schedule of Share Based Compensation Stock Options Activity

The weighted average remaining contractual term and the aggregate intrinsic value of stock options outstanding and exercisable as of December 31, 2019 is as follows:

	Employee Stock Options
	Omnibus Incentive Plan			Assurance IQ Acquisition
	Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(in years)	(in millions)		(in years)	(in millions)
Outstanding	4.53	$	92	8.47	$	51
Exercisable	3.73	$	92	8.69	$	3

A summary of the status of the Company’s stock option grants is as follows

	Employee Stock Options
	Omnibus Incentive Plan				Assurance IQ Acquisition
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at December 31, 2018	4,584,244		$	72.03	0		$	0.00
Granted	569,137		93.36		584,017		1.36
Exercised	(541,473	)	58.56		(36,825	)	0.98
Forfeited	(165	)	76.71		0		0.00
Expired	(746	)	19.86		0		0.00
Outstanding at December 31, 2019	4,610,997		$	76.26	547,192		$	1.38
Exercisable at December 31, 2019	3,614,679		$	70.03	33,596		$	2.08

Schedule of Nonvested Share Activity

	Restricted Stock Units		Weighted Average Grant Date Fair Value		Performance Share and Performance Unit Awards(1)		Weighted Average Grant Date Fair Value
Restricted at December 31, 2018(2)	4,760,914		$	90.09	1,809,075		$	81.55
Granted(2)	1,919,168		93.35		691,724		90.68
Forfeited	(183,997	)	100.09		(12,947	)	93.26
Performance adjustment(3)					92,841		93.36
Released	(2,024,896	)	65.44		(757,807	)	93.36
Restricted at December 31, 2019(2)	4,471,189		$	102.25	1,822,886		$	80.62

__________

(1) Performance share and performance unit awards reflect the target units awarded, reduced for forfeitures and releases to date. The actual number of units to be awarded at the end of each performance period will range between 0% and 125% of the target number of units granted, based upon a measure of the reported performance for the Company relative to stated goals. Performance awards granted to senior management in 2018 include a stated goal related to diversity & inclusion that can modify the performance result by +/- 10%.

(2) Effective October 1, 2019, the Company modified existing performance share and performance unit awards to remove features of the grants that prevent having a mutual understanding of the key terms and conditions of the award between the employee and employer until the grants vested. Consequently, the weighted average grant date fair value as of December 31, 2019 is the closing stock price of Prudential Financial’s common stock as of September 30, 2019. The weighted average grant date fair value as of 12/31/2018 is the closing stock price of Prudential Financial’s common stock as of December 31, 2018.

(3) Represents the difference between the target units granted and the actual units awarded based upon the attainment of performance goals for the Company.

A summary of the Company’s restricted stock units and performance share awards related to the Acquisition is as follows:

	Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Share Awards(1)	Weighted Average Grant Date Fair Value
Restricted at December 31, 2018	0	$	0	0	$	0.00
Granted	125,788	87.67		1,982,708	89.81
Forfeited	0	0		0	0.00
Performance adjustment(2)	0	0		0	0.00
Released	0	0		0	0.00
Restricted at December 31, 2019	125,788	$	87.67	1,982,708	$	89.81

__________

(1) Performance share awards related to the Assurance IQ acquisition reflect the maximum number of units that have been awarded under the terms of the acquisition. The actual number of units that will be awarded at the end of the performance period will range between 0% and 100% of the number of units granted, based upon a predetermined formula of achieving variable profits between $900 million and $1,300 million.

(2)

Represents the difference between the target units granted and the actual units awarded based upon the attainment of performance goals for the Company