Chrysler 2005 Annual Report Download - page 124

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Fiat Group Consolidated Financial Statements at December 31, 2005 - N otes to the Consolidated Financial Statements
Such performance-based restricted shares vest no later than seven years from the award date. Effective for the 2002 plan year only, a special
incentive plan was approved which provided a grant of restricted stock to certain senior executives upon meeting a specified financial
position target. In 2004, for individuals electing to not take the restricted stock earned under this plan, CN H issued an equivalent number of
common shares to individuals who remained employed by CN H as of the vesting date for the restricted shares.
In 2004 a new performance-vesting long-term incentive award was granted to selected key employees and executive officers, which is
subject to their achieving certain performance-based criteria over the three year period 2004-2006.At the end of the performance cycle,
any earned awards will be satisfied equally with cash and CN H common shares, as determined at the beginning of the performance cycle,
for minimum target and maximum award levels. A minimum payout from the plan requires meeting certain threshold levels of performance.
As a transition to the plan, for the first award under the performance cycle of 2004-2006, participants have an opportunity to receive an
accelerated payment of 50% of the targeted award after the first two years of the performance cycle. In 2005, an additional award was
approved under the same plan for the 3 year performance cycle 2005-2007.
A summary of outstanding stock options at D ecember 31, 2005 is as follows:
D irectors’ plan Equity incentive plan
O ptions Average remaining O ptions Average remaining
outstanding at contractual life outstanding at contractual life
Exercise price (in USD ) D ecember 31, 2005 (in years) December 31, 2005 (in years)
9.15 - 15.70 64,348 8.3 886,260 6.6
15.71 - 26.20 71,055 8.4 – –
26.21 - 40.00 18,654 5.5 625,000 5.6
40.01 - 56.00 4,460 4.9 – –
56.01 - 77.05 10,525 4.3 529,810 4.1
Total at December 31, 2005 169,042 7.7 2,041,070 5.6
Changes during the period are as follows:
D irectors’ plan Equity incentive plan
N umber of shares Average exercise N umber of shares Average exercise
price (in USD ) price (in USD )
O utstanding at the beginning of the year 142,005 22.41 2,464,575 33.68
Granted during the year 31,037 17.90 10,000 18.06
Forfeited during the year (4,000) 17.28 (249,805) 49.83
Exercised during the year – – (183,700) 16.18
Expired during the year – – – –
O utstanding at December 31, 2005 169,042 21.71 2,041,070 34.62
Exercisable at December 31, 2005 141,872 22.50 1,747,634 36.76