Cobalt International Energy, Inc.
Notes to Consolidated Financial Statements (Continued)
14. Equity based Compensation (Continued)
The following table summarizes the information about the restricted stock awarded to employees
for years ended December 31, 2014, 2013 and 2012:
Year Ended December 31,
2014
2013
2012
Weighted
Weighted
Weighted
Average
Average
Average
Grant Date
Grant Date
Grant Date
Restricted Fair Value
Restricted Fair Value
Restricted Fair Value
Shares
Per Share
Shares
Per Share
Shares
Per Share
Non-vested shares at
beginning of year . . . . .
4,334,886 $14.31
4,040,825 $13.05
4,599,783 $11.27
Granted . . . . . . . . . . . . . .
2,275,317 $14.53
620,840 $24.58
487,710 $26.01
Vested . . . . . . . . . . . . . . .
(1,433,172) $16.32
(239,317) $17.37
(738,628) $13.05
Forfeited or expired(1) . . .
(2,374,242) $10.63
(87,462) $20.91
(308,040) $12.17
Non-vested shares at end
of year . . . . . . . . . . . . .
2,802,789 $16.44
4,334,886 $14.31
4,040,825 $13.05
Weighted-average vesting
period remaining . . . . . .
3.08 years
1.22 years
1.87 years
Unrecognized
compensation
($ in thousands) . . . . . . $ 34,066
$ 22,467
$ 23,827
(1) The 2,374,242 forfeited or expired restricted shares for the year ended December 31, 2014 include
2,306,173 restricted shares that were forfeited on December 21, 2014 because the market condition
attached to the vesting terms of the awards was not met.
A total of 58,038 restricted stock units were granted to non-employee directors during the year
ended December 31, 2014. As of December 31, 2014, the Company has granted a cumulative total of
235,801 restricted stock units to non-employee directors. For the years ended December 31, 2014, 2013
and 2012, the Company also granted 26,438, 15,318 and 12,221 shares of common stock, respectively,
for annual retainers to non-employee directors who elected to be compensated by stock in lieu of cash
payments. For the years ended December 31, 2014, 2013 and 2012, the weighted average fair values of
these shares at grant date were $17.52, $25.40 and $21.35 per share, respectively.
Non-Qualified Stock Options.
The Company grants non-qualified stock options to employees at an
exercise price equal to the market value of the Company’s common stock on the grant date. The
non-qualified stock option awards have contractual terms of 10 years. The options granted in February
2014 and 2013 will vest 50% at the end of the third year from date of grant and 50% at the end of the
fourth year from date of grant. The options granted in 2012 were fully vested during the year ended
December 31, 2014.
The fair value of each stock option granted is determined using the Black-Scholes-Merton option-
pricing model based on several assumptions. These assumptions are based on management’s best
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