Chrysler 2005 Annual Report Download - page 125

124 Fiat Group Consolidated Financial Statements at D ecember 31, 2005 - N otes to the Consolidated Financial Statements
02 Fiat Group
The Black-Scholes pricing model is used to calculate the fair value of the share-based compensation for the CN H Sector;based on this model,
the weighted average fair value of stock options granted for the year ended D ecember 31, 2005 is 10.13 USD for the outside directors’
compensation plan and 10.18 USD for the equity incentive plan, determined on the basis of the following assumptions:
Directors’ plan Equity incentive plan
O ption life (years) 55
Expected volatility of CN H Global N .V. shares (%) 72.0 71.5
Expected dividend yield (%) 1.3 1.3
Risk-free interest rate (%) 3.9 3.7
The total cost recognised in the income statement for share-based compensation linked to CN H Global N .V. ordinary shares amounted to
1 million euros in 2005 (0.4 million euros in 2004).
Stock Option linked to Ferrari S.p.A. ordinary shares
Under this scheme, on the one hand the employees of Ferrari S.p.A., and on the other the Chairman and the Chief Executive O fficer of the
company, have the option to acquire respectively 207,200 and 184, 000 Ferrari S.p.A. ordinary shares at a strike price of 175 euros per share.
Under the scheme the options may be exercised until D ecember 31, 2010, wholly or partially, and are subject to a limited extent to the
company’s listing process.
Cash-settled share-based payments
Certain entities of the Fiat Powertrain Technologies Sector have agreed with a number of employees a total of four cash-settled share-based
payment defined Stock Appreciation Rights (SAR) plans. Under these plans, the 54 employees involved have the right to receive a payment
corresponding to the increase in share price between the grant date and the exercise date of General Motors $1 2/3 shares listed in N ew
York and Fiat S.p.A. ordinary shares listed in Milan.The right is exercisable from the vesting date to the expiry date of the plans and is
subordinated to certain conditions (N on-Market Conditions “N MC”).The contractual terms of these rights are as follows:
O utstanding rights O utstanding rights
on GM $1 2/3 on Fiat S.p.A. Grant price Grant price
Vesting date shares at shares at GM $1 2/3 Fiat S.p.A. Vesting
Plan Grant date From Until December 31, 2005 D ecember 31, 2005 (in USD) (in euros) portion
2001 February 12, 2002 March 1, 2002 February 12, 2009 45,053 217,936 49.57 15.50 100%* N MC
2002 February 12, 2002 February 12, 2003 February 12, 2010 44,580 205,150 49.57 15.50 1/3* N MC
February 12, 2004 February 12, 2010 1/3* N MC
February 12, 2005 February 12, 2010 1/3* N MC
2003 February 11, 2003 February 11, 2004 February 11, 2011 46,644 218,880 36.26 7.95 1/3* N MC
February 11, 2005 February 11, 2011 1/3* N MC
February 11, 2006 February 11, 2011 1/3* N MC
2004 February 10, 2004 February 10, 2005 February 11, 2012 40,470 205,169 49.26 6.03 1/3* N MC
February 10, 2006 February 11, 2012 1/3* N MC
February 10, 2007 February 11, 2012 1/3* N MC