Chrysler 2007 Annual Report Download - page 156

155Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
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” ).
Contractual terms of the plan are as follows:
Strike price Number of
Plan Grant date Expiry date (euros) options vested Vesting date Vesting portion
Stock Options July 2004 July 26, 2004 January 1, 2011 6.583 10,670,000 June 1, 2005 22.2%
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 (subject to the subsequent approval of Stockholders in General
Meeting, which was given on April 5, 2007) 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 once all its conditions have been
satisfied.
The contractual terms of 2006 plan are as follows:
Strike price Number of Vesting
Plan Recipient Expiry date (euros) options vested Vesting date portion
Stock Option November 2006 Chief Executive Officer November 3, 2014 13.37 5,000,000 November 2007 25%
November 2008 25%
November 2009 25%
November 2010 25%
Stock Option November 2006 Chief Executive Officer November 3, 2014 13.37 5,000,000 1st Quarter 2008 (*) 25%*NMC
1st Quarter 2009 (*) 25%*NMC
1st Quarter 2010 (*) 25%*NMC
1st Quarter 2011 (*) 25%*NMC
Stock Option November 2006 Managers November 3, 2014 13.37 10,000,000 1st Quarter 2008 (*) 25%*NMC
1st Quarter 2009 (*) 25%*NMC
1st Quarter 2010 (*) 25%*NMC
1st Quarter 2011 (*) 25%*NMC
(*) On approval of the prior year’s Financial Statements.