Share-Based Compensation Plans

3 Months Ended

Mar. 31, 2017

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

The Northern Trust Corporation 2012 Stock Plan provides for the grant of nonqualified stock options, incentive stock options, stock appreciation rights, stock awards, restricted stock units and performance stock units.

Beginning with grants made on or after February 21, 2017, restricted stock unit and performance stock unit grants continue to vest in accordance with the original terms of the award if the applicable employee retires, after satisfying applicable age and service requirements. For all applicable periods, stock option grants continue to vest in accordance with the original terms of the award if the applicable employee retires, after satisfying applicable age and service requirements.

In the first quarter of 2017, the Corporation granted 468,381 non-qualified stock options with a total grant-date fair value of $9.0 million, 839,354 stock unit awards with a total grant-date value of $73.9 million, and 206,091 performance stock units with a total grant-date fair value of $18.1 million.

Compensation expense for the three months ended March 31, 2017 of $21.6 million and $5.5 million was attributable to restricted stock units and stock options, respectively, granted to retirement-eligible employees that were expensed in their entirety on the date of grant. Compensation expense for the three months ended March 31, 2016 of $5.5 million was attributable to stock options granted to retirement-eligible employees that were expensed in their entirety on the date of grant.

Compensation expense for the three months ended March 31, 2017 of $3.3 million was attributable to performance stock units granted to retirement-eligible employees that are expensed from the date of grant through the requisite service period which ends on June 30, 2017.

Restricted stock unit award compensation expense for the three months ended March 31, 2017 and 2016 includes $2.5 million and $2.0 million, respectively, attributable to restricted stock units vested in full and were expensed in the entirety upon their date of grant.

Total compensation expense for share-based payment arrangements and the associated tax impacts were as follows for the three months ended March 31, 2017 and 2016.

Table 59: Total Compensation Expense for Share-Based Payment Arrangements



	Three Months Ended March 31,
(In Millions)	2017		2016
Restricted Stock Unit Awards	$	41.2	$	15.3
Stock Options	6.3		6.4
Performance Stock Units	8.5		4.1
Total Share-Based Compensation Expense	56.0		25.8
Tax Benefits Recognized	$	21.2	$	9.7

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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