Parent Company Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

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

Parent Company Stock-Based Compensation

GM provides certain stock-based compensation plans for employees and key executive officers.

Long-Term Incentive Plan

GM grants to certain employees Restricted Stock Units (“RSUs”), Performance-based Share Units (“PSUs”) and stock options. Shares awarded under the plans are subject to forfeiture if the participant leaves the company for reasons other than those permitted under the plans, such as retirement, death or disability. GM's policy is to issue new shares upon settlement of RSUs.

The following table summarizes the awards granted (units in thousands):



	Year Ended December 31,
	2015	2014	2013
RSUs	317	431	700
PSUs	366	326	—
Stock options	786	—	—

The RSUs awarded either cliff vest or ratably vest over a three-year service period, as defined in the terms for each award. Vesting and subsequent settlement will generally occur based on employment at the end of each specified service period.

The ultimate number of PSUs earned will be determined at the end of the specified performance period, which is three years, based on performance criteria determined by the Executive Compensation Committee of the GM Board of Directors at the time of award. The number of shares earned may equal, exceed or be less than the targeted number of shares depending on whether the performance criteria are met, surpassed or not met. PSU awards generally vest and settle at the end of a three-year period.

Stock options were granted to senior leaders to maintain the leadership consistency needed to achieve our and GM's short-term and long-term goals. Each recipient was required to accept non-compete and non-solicitation covenants. These stock options have a vesting feature whereby two-fifths of the award is exercisable approximately nineteen months after the date of grant and the remainder vest ratably over the next three years based on the performance of GM’s stock relative to that of a specified peer group. The stock options expire ten years from the grant date.

Salary Stock Plan

In the year ended December 31, 2013 a portion of each participant's salary was accrued on each salary payment date and converted to RSUs on a quarterly basis. In June 2013 the plan was amended to provide for cash or share settlement of awards based on election by the participant. The liability for these awards continues to be remeasured to fair value at the end of each reporting period.

RSUs, PSUs and Stock Options

The following table summarizes information about RSU, PSUs and stock options granted to our employees and key executive officers under GM's stock-based compensation programs (units in thousands):



	Year Ended December 31, 2015
	Shares		Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term (years)
Units outstanding at January 1, 2015	1,409		$	32.75	1.5
Granted	1,469		$	34.27
Forfeited or expired	(17	)	$	36.04
Settled	(559	)	$	28.99
Units outstanding at December 31, 2015	2,302		$	34.61	1.3
Units unvested and expected to vest at December 31, 2015	1,464		$	35.40	1.4
Units vested and payable at December 31, 2015	778		$	33.05
Units granted in the year ended December 31, 2014			$	35.96
Units granted in the year ended December 31, 2013			$	33.58

The following table summarizes compensation expense recorded for stock-based incentive plans (in millions):



	Years Ended December 31,
	2015		2014		2013
Compensation expense	$	36	$	19	$	21
Income tax benefit	13		8		8
Compensation expense, net of tax	$	23	$	11	$	13

At December 31, 2015 and 2014, total unrecognized compensation expense for nonvested equity awards granted was $53 million and $31 million. This expense is expected to be recorded over a weighted-average period of 1.4 years. The total fair value of RSUs and PSUs vested in the years ended December 31, 2015, 2014, and 2013 was $13 million, $9 million and $9 million for each year.

In the years ended December 31, 2015, 2014, and 2013, total payments for 254,000, 359,000 and 317,000 RSUs settled in cash under stock incentive plans were $9 million, $13 million and $10 million.