Chrysler 2005 Annual Report Download - page 121

120 Fiat Group Consolidated Financial Statements at D ecember 31, 2005 - N otes to the Consolidated Financial Statements
02 Fiat Group
The contractual terms of these stock option plans were as follows:
Strike price N o. of options
Plan Grant date Expiry date (euros) assigned Vesting date Vesting portion
Stock O ptions O ctober 1, 2003 O ctober 1, 2010 6.678 598,982 O ctober 1, 2004 1/3* 50%+
O ctober 2003 + 1/3* 50%* (target performance)
O ctober 1, 2005 1/3* 50%+
+ 1/3* 50%* (target performance)
O ctober 1, 2006 1/3* 50%+
+ 1/3* 50%* (target performance)
Stock O ptions N ovember 15, 2003 N ovember 15, 2010 6.712 446,961 N ovember 15, 2004 1/3* 1/3+
N ovember 2003 + 1/3* 2/3* (target performance)
N ovember 15, 2005 1/3* 1/3+
+ 1/3* 2/3* (target performance)
N ovember15, 2006 1/3* 1/3+
+ 1/3* 2/3* (target performance)
The two managers to whom these plans relate left the Group in February 2005. Under the stock option contract, the two former employees
maintained their right to exercise the vested portion of the options for one month following their date of leaving, although this right was not
exercised.As a consequence, the plans concerning these two former employees have ceased.
O n March 27, 2003, the Board adopted a resolution to grant to the Chief Executive O fficer Mr. Giuseppe Morchio a number of options
to purchase Fiat S.p.A. ordinary shares at a fixed price.The exercise rights of this plan vested over period of time starting on the vesting date
to the expiry date of the plan.The right to exercise the options was subordinated to certain time limits and was contingent upon meeting a
pre-established performance.
Contractual terms of the plan were as follows:
Strike price N o. of options
Plan Grant date Expiry date (euros) assigned Vesting date Vesting portion
Stock O ptions July 31, 2003 March 27, 2010 5.623 13,338,076 March 27, 2004 20%
March 2003 March 27, 2005 1/3* 20%+
+ 2/3* 20%* (profit objectives)
March 27, 2006 1/3* 20%+
+ 2/3* 20%* (profit objectives)
March 27, 2007 1/3* 20%+
+ 2/3* 20%* (profit objectives)
March 27, 2008 1/3* 20%+
+ 2/3* 20%* (profit objectives)
Mr. Morchio resigned on May 30, 2004, leading to the expiry of 10,670,461 of these options.The remaining options have all vested and were
exercisable until May 30, 2005, but expired unexercised.
O n July 26, 2004, the Board of D irectors granted to Sergio Marchionne as a part of his compensation as Chief Executive O fficer options for
the purchase of 10,670,000 Fiat S.p.A. ordinary shares at the price of 6.583 euros, exercisable from June 1, 2008 to January 1, 2011. In each of
the first three years following the grant date, Mr. Marchionne accrues the right to purchase an annual maximum of 2,370,000 shares. From June
1, 2008, he will have the right to purchase, effective at that date, the residual portion, totalling 3,560,000 shares.Vesting of the last block of
stock options is subject to certain pre-determined profitability targets.