Cemex 2013 Annual Report Download - page 112

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Notes to the consolidated financial statements
21) Executive stock-based compensation
CEMEXhaslong-termrestrictedstock-basedcompensationprogramsprovidingforthegrantofCEMEX’sCPOstoagroupofexecutives,
pursuanttowhich,newCPOsareissuedundereachannualprogramoveraserviceperiodof4years.Byagreementwiththeexecutives,the
CPOsoftheannualgrant(25%ofeachannualprogram)areplacedinatrustestablishedforthebenetoftheexecutivestocomplywith
a1yearrestrictiononsale.Undertheseprograms,CEMEXgrantedapproximately49.6millionCPOsin2013,46.4millionCPOsin2012
and43.4millionCPOsin2011thatweresubscribedandpendingforpaymentinCEMEX’streasury.OfthetotalCPOsgrantedin2012,
approximately10.3millionCPOswererelatedtoterminationpaymentsassociatedwithrestructuringevents(note6).AsofDecember31,
2013,thereareapproximately82.3millionCPOsassociatedwiththeseannualprogramsthatareexpectedtobeissuedduringthefollowing
yearsastheexecutivesrenderservices.Thecompensationexpenserelatedtotheseprogramsin2013,2012and2011recognizedinthe
operatingresultsamountedtoapproximately$551,$486and$495,respectively.TheweightedaveragepriceperCPOgrantedduringthe
periodwasapproximately$11.11in2013,$10.48in2012and$11.42in2011.
In2012,CEMEXinitiatedanewstock-basedcompensationprogramforagroupofexecutiveswhichislinkedtobothinternalperformance
conditions(increaseinOperatingEBITDA),andmarketconditions(increaseinthepriceofCEMEX’sCPO),overaperiodofthreeyears.Under
thisprogram,CEMEXgrantedawardsoverapproximately39.9millionCPOs,whichbecomevesteduponachievementoftheannualinternalo
externalperformanceconditions,whichwereachievedin2013and2012,representingatotalof50%oftheCPOsgranted.AnyCPOsvested
wouldbeonlydelivered,fullyunrestricted,toactiveexecutivesinMarch2015.Thecompensationexpenserelatedtothisprogramin2013
and2012recognizedintheoperatingresultsagainst“Otherequityreserves”amountedtoapproximately$136inbothperiods.
OptionsoutstandingunderCEMEX’sprogramsrepresentliabilityinstruments(note2S).Theinformationrelatedtooptionsgrantedinrespect
ofCEMEX,S.A.B.deC.V.sharesisasfollows:
Variable Restricted Special
Options Program (A) Program (B) Program (C)
Optionsatthebeginningof2012 543,496 15,022,272 632,792
Changes in 2012:
Optionscancelledandadjustments (279,720) (15,022,272) (125,345)
Optionsattheendof2012 263,776 – 507,447
Changes in 2013:
Optionscancelledandadjustments (263,776) – (160,112)
Optionsexercised – – (111,312)
Optionsattheendof2013 – – 236,023
UnderlyingCPOs1 – – 4,720,450
Weighted average exercise prices per CPO:
Optionsoutstandingatthebeginningof20131 US$1.4 – US$1.4
Optionsexercisedintheyear – – US$1.0
Optionsoutstandingattheendof20131 – – US$1.6
Average life of options: – – 0.8years
1 PricesandthenumberofunderlyingCPOsaretechnicallyadjustedforthedilutiveeffectofstockdividendsandrecapitalizationofretainedearnings.
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