Share-Based Compensation Plans

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

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.

For the three and six months ended June 30, 2019, there was no compensation expense and $9.2 million of compensation expense, respectively, attributable to performance stock units granted to retirement-eligible employees in 2019 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 and six months ended June 30, 2018 included $10.6 million and $15.3 million of compensation expense, respectively, 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.

Total compensation expense for share-based payment arrangements and the associated tax impacts were as follows for the three and six months ended June 30, 2019 and 2018.

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



	Three Months Ended June 30,				Six Months Ended June 30,
(In Millions)	2019		2018		2019		2018
Restricted Stock Unit Awards	$	15.3	$	18.1	$	54.5	$	64.8
Stock Options	0.2		0.7		0.7		1.5
Performance Stock Units	3.2		14.4		18.8		23.4
Total Share-Based Compensation Expense	18.7		33.2		74.0		89.7
Tax Benefits Recognized	$	4.7	$	8.2	$	18.4	$	22.2