Adidas 2000 Annual Report Download - page 96

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Under the adopted stock option plan, the Executive Board has
been authorized to issue non-transferable stock options for up
to 1,367,187 no-par-value bearer shares to the above mentioned
persons until August 27, 2004. The granting of stock options
can take place in tranches that shall not exceed 25% of the
total volume for each fiscal year.
There is a two-year vesting period for the stock options and a
term of approximately three years upon their respective issue.
In the reporting year, 329,700 stock options were issued in
Tranche II of the program. Of these issued options, 315,350
still exist on the balance sheet date. Of the 263,000 stock
options issued in Tranche I, issued in the previous reporting
year, 213,050 still exist at year-end 2000.
The stock options can only be exercised subject to the attain-
ment of at least one of the following performance objectives:
(a) Absolute Performance
During the period between the issue and exercise of the stock
options, the stock market price for the Company’s shares –
calculated upon the basis of the Total Shareholder Return
Approach – has increased by an annual average of at least 8%.
(b) Relative Performance
During the same period, the stock market price for the Com-
pany’s shares must have developed by an annual average of
1% more favorably than the stock market prices of the major
competitors of adidas-Salomon globally and in absolute terms
may not have fallen.
The stock options can only be exercised against payment of
the exercise price. The exercise price corresponds to the arith-
metical mean of the closing prices of the adidas-Salomon share
over the last 20 trading days of the respective exercise period,
less a discount, which is composed of the absolute and relative
performance components. In any case, the exercise price shall
be at least the lowest issue price as stipulated in § 9 section 1
of the German Stock Corporation Act (AktG), currently c 2.56.
The option terms and conditions stipulate that the stock options
can be used for existing common shares in lieu of new shares
from the contingent capital, or in the place of common shares
the discount is paid in cash.
Compensation costs for the difference between the exercise
price and the fair value of the shares or the intrinsic value of
share options granted will not be recognized in the financial
statements.
Other Stock Option Plans
At Salomon S.A., France, a tranche of the existing stock option
plan was exercised during the year 2000 by the beneficiaries.
As a result of the acquisition of Salomon S.A., this stock option
plan was linked with a fixed rate of 0.73 to the price of the
shares of adidas-Salomon AG. The effect of this exercise was
treated as additional acquisition cost for adidas Salomon
France S.A.
Effective January 1, 2000 Taylor Made Golf Co., Inc., United
States, implemented a Long-Term Incentive Plan (LTIP) for its
key employees. Under the adopted plan, a total of 450,000
stock appreciation rights were granted with a latest exercise
date of December 31, 2002. Taylor Made Golf Co., Inc. had
issued 371,284 rights by December 31, 2000.
30. Other Information
Employees
The average numbers of employees are as follows:
2000 1999
Sales companies 8,435 8,048
Sourcing/Production 3,224 3,062
Global marketing/Research
and development 918 811
Central functions 580 512
Total 13,157 12,433
Remuneration of the Supervisory Board and
Executive Board of adidas-Salomon AG
(euros in thousands) 2000 1999
Supervisory Board remuneration 217 212
Executive Board remuneration 7,609 10,408
Thereof: SRIP (see note 29) 0 1,523
Remuneration of former members
of the Executive Board 68 66
Thereof: Pension payments to former
members of the Executive Board 68 66
Pension obligations regarding former
members of the Executive Board 1,968 1,668
Herzogenaurach, February 16, 2001
The Executive Board of adidas-Salomon AG