Share-Based Compensation Plans

The Northern Trust Corporation 2017 Long-Term Incentive Plan provides for the grant of non-qualified and incentive stock options; tandem and free-standing stock appreciation rights; stock awards in the form of restricted stock, restricted stock units and other stock awards; and performance awards.

Beginning with the grants made on February 21, 2017 under the Corporation’s prior equity incentive plan, 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.

The Corporation granted 798,669 stock units awards with a total grant-date fair value of $73.4 million during the three months ended March 31, 2019, compared to 793,995 stock units awards with a grant-date fair value of $82.6 million during the three months ended March 31, 2018. Compensation expense for the three months ended March 31, 2019 included $21.2 million attributable to restricted stock units granted to retirement-eligible employees that were expensed in their entirety on the date of grant, compared to $26.9 million in the prior-year quarter.

There were no non-qualified stock option grants in the three months ended March 31, 2019 and 2018.

The Corporation granted 211,269 performance stock units with a total grant-date fair value of $19.6 million during the three months ended March 31, 2019, compared to 242,232 performance stock units with a total grant-date fair value of $25.4 million during the three months ended March 31, 2018. Compensation expense for the three months ended March 31, 2019 included $9.2 million attributable to performance stock units granted to retirement-eligible employees that were expensed in their entirety on the date of grant as there was no requisite service period associated with the grant. Compensation expense for the three months ended March 31, 2018 included $4.7 million attributable to performance stock units granted to retirement-eligible employees that were expensed from grant date through the requisite service period, which ended on June 30, 2018.

Restricted stock unit award compensation expense for the three months ended March 31, 2019 and 2018 included $3.3 million and $2.7 million, respectively, attributable to restricted stock units vested in full and expense in their entirety upon 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, 2019 and 2018.

Table 67: Total Compensation Expense for Share-Based Payment Arrangements



	Three Months Ended March 31,
(In Millions)	2019		2018
Restricted Stock Unit Awards	$	39.2	$	46.7
Stock Options	0.5		0.8
Performance Stock Units	15.6		9.0
Total Share-Based Compensation Expense	55.3		56.5
Tax Benefits Recognized	$	13.7	$	14.0