Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

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

Stock-Based Compensation

STOCK-BASED COMPENSATION

The Jones Lang LaSalle Amended and Restated Stock Award and Incentive Plan (“SAIP”) provides for the granting of various stock awards to eligible employees of Jones Lang LaSalle. Such awards include restricted stock units and options to purchase a specified number of shares of common stock, although we have not granted stock options since 2003. There were approximately 1.1 million shares available for grant under the SAIP at December 31, 2013. We also have a stock-based compensation plan for our United Kingdom and Ireland based employees, the Jones Lang LaSalle Savings Related Share Option Plan (“Save As You Earn” or “SAYE” plan), that allows for the purchase of stock at a 15% discount from the market price at the beginning of the plan’s three and five year vesting periods.

Share-based compensation expense is included within Compensation and benefits expense in our Consolidated Statements of Comprehensive Income. Share-based compensation expense for the years ended December 31, 2013, 2012 and 2011 consisted of the following ($ in thousands):

	2013		2012	2011
Restricted stock unit awards	$	21,292	31,553	33,915
UK SAYE	1,030		938	726
	$	22,322	32,491	34,641

We amortize the fair value of share-based compensation on a straight-line basis over the associated vesting periods for each separately vesting portion of an award. Employees age 55 or older, with a sum of age plus years of service with the Company which meets or exceeds 65, are eligible to be considered for receipt of retirement benefits upon departure from the Company. These criteria trigger application of certain provisions of ASC Topic 718, “Compensation - Stock Compensation,” whereby compensation expense for restricted stock unit awards granted to employees meeting these criteria are accelerated such that all expense is recognized by the time that these employees meet the criteria to be considered for retirement eligibility.

Restricted Stock Unit Awards

Historically a significant portion of restricted stock units granted each year have been granted in the first quarter of the year under our Stock Ownership Program (the “SOP”). The SOP generally required that from 10% to 20% of incentive compensation (or “bonus”) of certain senior employees be deferred and delivered in restricted stock units. Under the SOP plan we have granted approximately 365,000 and 212,000 shares of restricted stock in 2012, and 2011, respectively. In the second quarter of 2012, we terminated the SOP in connection with incentive compensation payments for 2012 performance, such that no additional restricted stock units were issued under the SOP in the first quarter of 2013 or will be thereafter. Since the start of the SOP, our employee population has grown significantly and other aspects of our compensation programs have evolved, as a result of which we have determined that (1) there are other more targeted and strategic approaches we can take in order to enhance our equity incentive compensation programs, and (2) we can do so in a way that will be less dilutive to shareholders than the SOP would be if we continued this plan.

Restricted stock unit activity for the years ending December 31, 2013 and 2012 is as follows:

		Shares (thousands)		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life
Unvested at January 1, 2012		1,362.3		$	66.29
	Granted	606.3		67.34
	Vested	(577.7	)	62.24
	Forfeited	(45.0	)	66.52
Unvested at December 31, 2012		1,345.9		$	68.50	1.91
	Granted	244.4		91.01
	Vested	(522.8	)	70.51
	Forfeited	(42.5	)	62.29
Unvested at December 31, 2013		1,025.0		$	73.10	2.03
Unvested shares expected to vest		992.3		$	73.22	2.03

We determine the fair value of restricted stock units based on the market price of the Company’s common stock on the grant date. As of December 31, 2013, we had $28.6 million of remaining unamortized deferred compensation related to unvested restricted stock units. We will recognize the remaining cost of unvested restricted stock units outstanding at December 31, 2013 over varying periods into 2018.

Shares vested during the years ended December 31, 2013, 2012 and 2011, had grant date fair values of $36.9 million, $36.0 million, and $49.7 million, respectively. Shares granted during the years ended December 31, 2013, 2012 and 2011 had grant date fair values of $22.2 million, $40.8 million and $37.5 million, respectively.

Other Stock Compensation Programs

We also have a stock-based compensation plan for our United Kingdom and Ireland based employees, the Jones Lang LaSalle Savings Related Share Option Plan ("Save as You Earn" or "SAYE"). Under this plan, employees make an annual election to contribute to the plan to purchase stock at a 15% discount from the market price at the beginning of the plan’s three and five year vesting periods. There were approximately 586,000 shares available for grant under the SAYE plan at December 31, 2013.

Options activity under the SAYE plan for the years ended December 31, 2013 and 2012 are as follows:

	2013		2012
Options granted	25,400		127,400
Exercise price - options granted	$	77.65	$	59.26
Options exercised	22,241		172,980
Weighted average exercise price	$	47.32	$	19.78

The fair values of options granted under the SAYE plan are amortized over their respective vesting periods. There were approximately 227,800 and 237,400 options outstanding under the SAYE plan at December 31, 2013 and 2012, respectively.