Company: KEY-PI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000091576-25-000038
Chunk: 132

Company: KEYCORP /NEW/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 132
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 Shares in any rolling three-year period.  Stock OptionsStock options granted to employees generally become exercisable at the rate of 25% per year. No option granted by KeyCorp will be exercisable less than one year after, or expire later than ten years from, the grant date. The exercise price is 100-110% of the closing price of our Common Shares on the grant date (or the prior business day if the grant date is not a business day).We determine the fair value of options granted using the Black-Scholes option-pricing model. This model was originally developed to determine the fair value of exchange-traded equity options, which (unlike employee stock options) have no vesting period or transferability restrictions. Because of these differences, the Black-Scholes model does not precisely value an employee stock option, but it is commonly used for this purpose. The model assumes that the estimated fair value of an option is amortized as compensation expense over the option’s vesting period.The Black-Scholes model requires several assumptions, which we developed and update based on historical trends and current market observations. Our determination of the fair value of options is only as accurate as the underlying assumptions. The assumptions pertaining to options issued during 2024, 2023, and 2022 are shown in the following table.Year ended December 31,202420232022Average option life7.0 years6.7 years6.5 yearsFuture dividend yield5.75 %4.28 %3.01 %Historical share price volatility.422 .347 .341 Weighted-average risk-free interest rate4.2 %3.9 %2.0 %The following table summarizes activity, pricing and other information for our stock options for the year ended December 31, 2024:Number ofOptionsWeighted-AverageExercise Price PerOptionWeighted-AverageRemaining Life (in years)AggregateIntrinsicValue(a)Outstanding at December 31, 20234,859,453 $18.28 4.8$4 Granted611,508 15.48 Exercised(819,268)13.54 Lapsed or canceled(272,920)19.08 Outstanding at December 31, 20244,378,773 $18.73 4.6$5 Expected to vest1,212,875 19.74 7.91 Exercisable at December 31,