SHAW GROUP INC - 10-Q filing on 2011-12-21

Note 11 - Share-Based Compensation	3 Months Ended
Nov. 30, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 11 — Share-Based Compensation During the three months ended November 30, 2011 and 2010, restricted stock units (RSUs) totaling 1,043,736 shares at a weighted-average per share price of $23.25 and 569,419 shares at a weighted-average per share price of $30.56, respectively, were awarded with vesting over three and approximately four years, respectively. Of the RSUs awarded during the three months ended November 30, 2011 and 2010, 688,411 shares and 269,511 shares, respectively, were classified as liability awards at November 30, 2011, due to the settlement of these awards in cash. During the three months ended November 30, 2011, there were no options awarded. During the three months ended November 30, 2010, options for the purchase of 600,073 shares at a weighted-average price of $30.56 per share, were awarded, vesting over approximately four years. The contractual lives of the awards during the three months ended November 30, 2010, are consistent with those of prior years. There were no significant changes in the assumptions or estimates used in the valuation of options subsequent to our year-end, August 31, 2011. During the three months ended November 30, 2011 and 2010, options were exercised for the purchase of 30,040 shares at a weighted-average exercise price of $17.28 per share and 110,840 shares at a weighted-average exercise price of $22.23 per share, respectively. There were no stock appreciation rights (SARs) awarded during the three months ended November 30, 2011. During the three months ended November 30, 2010, we awarded 358,751 SARs at a weighted average price of $30.56 per share, vesting over approximately four years. The Binomial valuation method was used to re-measure the fair value of the SARs at November 30, 2011. The SARs are classified as liability awards at November 30, 2011, due to the settlement of these awards in cash. During the three months ended November 30, 2011, we awarded 11,661,500 performance cash units (PCUs), at a weighted average fair value of $1.13 per unit, vesting over approximately three years. The PCUs represent the right to receive $1 for each earned PCU if specified performance goals are met over the three-year performance period. The PCU recipients may earn between 0% and 200% of their individual target award amount depending on the level of performance achieved. The fair value of PCUs was estimated at the grant date based on the probability of satisfying the performance goals associated with the PCUs using a Monte Carlo simulation model. The PCUs are classified as liability awards at November 30, 2011, due to the settlement of these awards in cash. Compensation cost for liability-classified awards is re-measured at each reporting period and is recognized as an expense over the requisite service period. For additional information related to these share-based compensation plans, see Note 13 — Share-Based Compensation of our consolidated financial statements in our 2011 Form 10-K.

Note 11 - Share-Based Compensation

3 Months Ended

Nov. 30, 2011

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

Note 11 — Share-Based Compensation

During the three months ended November 30, 2011 and 2010, restricted stock units (RSUs) totaling 1,043,736 shares at a weighted-average per share price of $23.25 and 569,419 shares at a weighted-average per share price of $30.56, respectively, were awarded with vesting over three and approximately four years, respectively. Of the RSUs awarded during the three months ended November 30, 2011 and 2010, 688,411 shares and 269,511 shares, respectively, were classified as liability awards at November 30, 2011, due to the settlement of these awards in cash.

During the three months ended November 30, 2011, there were no options awarded. During the three months ended November 30, 2010, options for the purchase of 600,073 shares at a weighted-average price of $30.56 per share, were awarded, vesting over approximately four years. The contractual lives of the awards during the three months ended November 30, 2010, are consistent with those of prior years. There were no significant changes in the assumptions or estimates used in the valuation of options subsequent to our year-end, August 31, 2011.

During the three months ended November 30, 2011 and 2010, options were exercised for the purchase of 30,040 shares at a weighted-average exercise price of $17.28 per share and 110,840 shares at a weighted-average exercise price of $22.23 per share, respectively.

There were no stock appreciation rights (SARs) awarded during the three months ended November 30, 2011. During the three months ended November 30, 2010, we awarded 358,751 SARs at a weighted average price of $30.56 per share, vesting over approximately four years. The Binomial valuation method was used to re-measure the fair value of the SARs at November 30, 2011. The SARs are classified as liability awards at November 30, 2011, due to the settlement of these awards in cash.

During the three months ended November 30, 2011, we awarded 11,661,500 performance cash units (PCUs), at a weighted average fair value of $1.13 per unit, vesting over approximately three years. The PCUs represent the right to receive $1 for each earned PCU if specified performance goals are met over the three-year performance period. The PCU recipients may earn between 0% and 200% of their individual target award amount depending on the level of performance achieved. The fair value of PCUs was estimated at the grant date based on the probability of satisfying the performance goals associated with the PCUs using a Monte Carlo simulation model. The PCUs are classified as liability awards at November 30, 2011, due to the settlement of these awards in cash.

Compensation cost for liability-classified awards is re-measured at each reporting period and is recognized as an expense over the requisite service period.

For additional information related to these share-based compensation plans, see Note 13 — Share-Based Compensation of our consolidated financial statements in our 2011 Form 10-K.