SEC Document


The following table summarizes option and share-based payment activity (including SARs) under these plans during the fiscal year ended May 31, 2017:

 

                             2017                   
Share-Based Payments            Weighted Average            
         Exercise Price            
             Number of Shares    
    Under Option        
     
(Shares in thousands)                    

Balance at June 1, 2016

     $ 31.88               3,213      

Options granted

       50.99               600      

Options exercised

       19.21               (758)       
              

 

 

      

Balance at May 31, 2017

       38.77                   3,055      
              

 

 

      

Exercisable at May 31, 2017

     $   31.38                     1,615            
SARs            2017            2016          2015        
(In millions, except per share amounts)                    

Weighted-average grant-date fair value per SAR

     $ 10.90      $   10.73           $   10.63    

Intrinsic value of options exercised

     $ 26.5      $ 22.3           $ 7.5    

Tax benefit from options exercised

     $ 9.7      $ 8.1           $ 2.5    

Fair value of SARS vested

     $ 4.6      $ 4.0                 $ 3.3    

 

At May 31, 2017, the aggregate intrinsic value and weighted-average remaining contractual life of options outstanding was $47.2 million and 6.8 years respectively, while the aggregate intrinsic value and weighted-average remaining contractual life of options exercisable was $36.9 million and 5.6 years, respectively.

At May 31, 2017, the total unamortized stock-based compensation expense related to SARs that were previously granted was $10.1 million, which is expected to be recognized over 3.25 years. We anticipate that approximately 1.4 million shares at a weighted-average exercise price of $47.06 and a weighted-average remaining contractual term of 8.2 years will ultimately vest under these plans.

Restricted Stock Plans

We also grant stock-based awards, which may be made in the form of restricted stock, restricted stock units, performance stock and performance stock units. These awards are granted to eligible employees or directors, and entitle the holder to shares of our common stock as the award vests. The fair value of the awards is determined and fixed based on the stock price at the date of grant. A description of our restricted stock plans follows.

Under the 2004 Omnibus Plan, a total of 12,000,000 shares of our common stock were subject to awards. Of the 12,000,000 shares of common stock issuable under the 2004 Omnibus Plan, up to 6,000,000 shares were subject to “full-value” awards such as restricted stock, restricted stock unit, performance stock and performance stock unit awards.

Under the 2014 Omnibus Plan, a total of 6,000,000 shares of our common stock may be subject to awards. Of those issuable shares, up to 3,000,000 shares of common stock may be subject to “full-value” awards similar to those issued under the 2014 Omnibus Plan.

The following table summarizes the share-based performance-earned restricted stock (“PERS”) activity during the fiscal year ended May 31, 2017:

 

     Weighted-Average
Grant-Date
    
(Shares in thousands)    Fair Value    2017   

Balance at June 1, 2016

     $   41.80                1,417   

Shares granted

       50.84                486   

Shares forfeited

       43.51                (13)  

Shares vested

       35.48                (476)  
         

 

 

 

Balance at May 31, 2017

     $ 47.02                        1,414   

The weighted-average grant-date fair value was $50.84, $45.79 and $44.28 for the fiscal years ended May 31, 2017, 2016 and 2015, respectively. The restricted stock cliff vest after three years. Nonvested restricted shares of common stock under the 2004 Omnibus Plan are eligible for dividend payments. At May 31, 2017, unamortized deferred compensation expense remaining totaled $27.1 million, of which $1.6 million and $25.5 million was associated with the 2004 and 2014 plans, respectively. The remaining amount is being amortized over the applicable vesting period for each participant.

On October 7, 2010, our Compensation Committee approved contingent awards of Performance Contingent Restricted Stock, (“PCRS”), for certain executives. During October 2010, 680,000 shares were granted at a weighted-average grant-date price of $20.73. Additional grants were made in July 2011, June 2012 and July 2012, totaling 115,000 shares, 10,000 shares and 50,000 shares, respectively, and were granted at a weighted-average grant-date price of $22.16, $25.76 and $25.87, respectively. The awards are contingent upon the level of attainment of performance goals for the three-year and five-year periods from June 1, 2010 ending May 31, 2013, and from June 1, 2010 ending May 31, 2015, respectively. Compensation cost for these awards is recognized on a straight-line basis over the related performance period, with consideration given to the probability of attaining the performance goals.

 

 

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