Share-Based Compensation Plans

6 Months Ended

Jun. 30, 2018

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

The Northern Trust Corporation 2017 Long-Term Incentive Plan provides for the grant of nonqualified 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. Current-quarter compensation expense included $10.6 million attributable to performance stock units granted to retirement-eligible employees that are expensed from the date of grant through the requisite service period which ends on June 30, 2018, compared to $7.2 million in the prior-year quarter.

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, 2018 and 2017.

Table 62: Total Compensation Expense for Share-Based Payment Arrangements



	Three Months Ended June 30,				Six Months Ended June 30,
(In Millions)	2018		2017		2018		2017
Restricted Stock Unit Awards	$	18.1	$	15.6	$	64.8	$	56.8
Stock Options	0.7		1.0		1.5		7.3
Performance Stock Units	14.4		12.0		23.4		20.5
Total Share-Based Compensation Expense	33.2		28.6		89.7		84.6
Tax Benefits Recognized	$	8.2	$	10.7	$	22.2	$	31.9