Stock Based Compensation Plans

12 Months Ended

Dec. 31, 2018

STOCK BASED COMPENSATION PLANS

We have long-term incentive award plans (Incentive Plans) that provide for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, incentive shares/performance units, restricted shares, restricted share units, other share-based awards and dollar-denominated awards to executives and, other than incentive stock options, to non-employee directors. Certain Incentive Plan awards may be paid in stock, cash or a combination of stock and cash. We typically grant a substantial portion of our stock-based compensation awards during the first quarter of each year.

Incentive/Performance Unit Awards and Restricted Share/Restricted Share Unit Awards

The fair value of nonvested incentive/performance unit awards and restricted share/restricted share unit awards is initially determined based on prices not less than the market value of our common stock on the date of grant with a reduction for estimated forfeitures. The value of certain incentive/performance unit awards is subsequently remeasured based on the achievement of one or more financial and other performance goals. Additionally, certain incentive/performance unit awards require subsequent adjustment to their current market value due to certain discretionary risk review triggers.

The weighted-average grant date fair value of incentive/performance unit awards and restricted share/restricted share unit awards granted in 2018, 2017 and 2016 was $149.38, $122.10 and $78.37 per share, respectively. The total intrinsic value of incentive/performance unit and restricted share/restricted share unit awards vested during 2018, 2017 and 2016 was approximately $254 million, $235 million and $147 million, respectively. We recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program.

Table 75: Nonvested Incentive/Performance Unit Awards and Restricted Share/Restricted Share Unit Awards Rollforward (a)



Shares in millions	Nonvested Incentive/Performance Units Shares		Weighted-Average Grant Date Fair Value		Nonvested Restricted Share/Restricted Share Units		Weighted-Average Grant Date Fair Value
December 31, 2017	2		$	94.29	3		$	95.64
Granted (b)	—		$	133.74	1		$	152.25
Vested/Released (b)	(1	)	$	89.56	(1	)	$	92.28
December 31, 2018	1		$	104.02	3		$	115.57


(a)	Forfeited awards during 2018 were insignificant.


(b)	Includes adjustments for achieving specific performance goals for Incentive/Performance Unit Share Awards granted in prior periods.

In Table 75, the units and related weighted-average grant date fair value of the incentive/performance unit share awards exclude the effect of dividends on the underlying shares, as those dividends will be paid in cash if and when the underlying shares are issued to the participants.

BlackRock Long-term Incentive Plans (LTIP)

BlackRock adopted the 2002 LTIP program to help attract and retain qualified professionals. At that time, we agreed to transfer up to four million shares of BlackRock common stock to fund a portion of the 2002 LTIP program and future LTIP programs approved by BlackRock’s Board of Directors.

In 2009, our obligation to deliver any remaining BlackRock common shares was replaced with an obligation to deliver shares of BlackRock’s Series C Preferred Stock held by us.

In 2018, we transferred 103,064 shares of BlackRock Series C Preferred Stock to BlackRock in connection with our obligation. At December 31, 2018, we held 143,458 shares of BlackRock Series C Preferred Stock which were available to fund our obligation.

See Note 24 Subsequent Events in Item 8 of this Report for information on our January 31, 2019 transfer of our remaining shares of Series C Preferred Stock to BlackRock to satisfy our obligation under the Share Surrender Agreement.