Chrysler 2006 Annual Report Download - page 76

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Fiat Group Consolidated Financial Statements at December 31, 2006 -Notes 149
Contractual terms of the plan are as follows:
Strike price
Plan Grant date Expiry date (euros) N° of options vested Vesting date Vesting portion
Stock Options July 26, 2004 January 1, 2011 6.583 10,670,000 June 1, 2005 22.2%
July 2004 June 1, 2006 22.2%
June 1, 2007 22.2%
June 1, 2008 33.4%*NMC
On November 3, 2006 the Fiat S.p.A. Board of Directors approved an eight year stock option plan, which provides certain managers
of the Group and the Fiat S.p.A. Chief Executive Officer with the right to purchase a determined number of Fiat S.p.A. ordinary
shares at the fixed price of 13.37 euros per share. In particular,the 10,000,000 options granted to employees and the 5,000,000
options granted to the Chief Executive Officer have a vesting period of four years, with a quarter of the number vesting each year,
are subject to achieving certain pre-determined profitability targets (Non-Market Conditions or “NMC”)in the reference period and
may be exercised from the date on which the 2010 financial statements are approved. The remaining 5,000,000 options granted to
the Chief Executive Officer of Fiat S.p.A. also have a vesting period of four years with a quarter of the number vesting each year
and may be exercised from November 2010.
The ability to exercise the options is additionally subject to specific restrictions regarding the duration of the employment
relationship or the continuation of the position held. The stock option plan will become effective after approval by stockholders in
general meeting and once all its conditions have been satisfied.
The contractual terms of 2006 plan proposed by Board of Directors are as follows:
Strike price N° of options
Plan Recipient Expiry date (euros) vested Vesting date Vesting portion
Stock Option Chief Executive November 3, 2014 13.37 5,000,000 November 2007 25%
November 2006 Officer November 2008 25%
November 2009 25%
November 2010 25%
Stock Option Chief Executive November 3, 2014 13.37 5,000,000 Spring 2008 (*)25%*NMC
November 2006 Officer Spring 2009 (*)25%*NMC
Spring 2010 (*)25%*NMC
Spring 2011 (*) 25%*NMC
Stock Option Managers November 3, 2014 13.37 10,000,000 Spring 2008 (*) 25%*NMC
November 2006 Spring 2009 (*) 25%*NMC
Spring 2010 (*) 25%*NMC
Spring 2011 (*) 25%*NMC
(*) On approval of the prior year’s Financial Statements.
The contractual terms of these plans are as follows:
Strike price Number of Vesting
Plan Recipient Grant date Expiry date (euros) options granted Vesting date portion
Stock Options 1999 Managers March 30, 1999 March 31, 2007 26.120 1,248,000 April 1, 2001 50%
April 1, 2002 50%
Stock Options 2000 Managers February 18, 2000 February 18, 2008 28.122 5,158,000 February 18, 2001 25%
February 18, 2002 25%
February 18, 2003 25%
February 18, 2004 25%
Stock Options Chairman July 25, 2000 July 25, 2008 25.459 250,000 July 25, 2001 50%
July 2000 of Fiat S.p.A. May 14, 2002 50%
Stock Options Managers February 27, 2001 February 27, 2009 24.853 785,000 February 27, 2002 25%
February 2001 February 27, 2003 25%
February 27, 2004 25%
February 27, 2005 25%
Stock Options Chairman March 29, 2001 October 30, 2008 23.708 1,000,000 July 1, 2002 100%
March 2001 of Fiat S.p.A.
Stock Options Managers October 31, 2001 October 31, 2009 16.526 5,417,500 October 31, 2002 25%
October 2001 October 31, 2003 25%
October 31, 2004 25%
October 31, 2005 25%
Stock Options Chairman May 14, 2002 January 1, 2010 12.699 1,000,000 January 1, 2005 100%
May 2002 of Fiat S.p.A.
Stock Options Managers September 12, 2002 September 12, 2010 10.397 6,100,000 September 12, 2003 25%
September 2002 September 12, 2004 25%
September 12, 2005 25%
September 12, 2006 25%
On July 26, 2004, the Board of Directors granted to Sergio Marchionne as a part of his compensation as Chief Executive Officer
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, the Officer accrues the right to purchase, from June 1,
2008, an annual maximum of 2,370,000 shares. From June 1, 2008, he will have the right to exercise, effective at that date, the
residual portion of the options on 3,560,000 shares. Vesting of the last block of stock options is subject to certain pre-determined
profitability targets (Non-Market Conditions or “NMC”).
Fiat Group Consolidated Financial Statements at December 31, 2006 -Notes 148