Chrysler 2008 Annual Report Download - page 298

connection with this plan, on 22 January 2009 the Board of Directors considered it a priority for the Group to propose a motion to
shareholders, in the General meeting being called by the Board, to adopt changes having the aim of reinstating and extending the
extent to which the plan encourages loyalty. More specifically, the changes to be proposed regard the introduction of a new vesting
period, depending solely on CEO’s permanence in office, which would mean that the options cannot be exercised until 1 January
2011, and the extension of the exercise period to 1 January 2016, with all the other conditions remaining unaltered.
The existing contractual terms of the plan are as follows:
Strike price Number of Vesting
Plan Grant date Expiry date (€) options granted Vesting date portion
Stock Option July 2004 26 July 2004 1 January 2011 6.583 10,670,000 1 June 2005 22.2%
1 June 2006 22.2%
1 June 2007 22.2%
1 June 2008 33.4%*NMC
On 3 November 2006 the Fiat S.p.A. Board of Directors resolved an eight year stock option plan (subject to approval by
Shareholders, which was given on 5 April 2007), which provides certain managers of the Group and the Chief Executive Officer of
Fiat S.p.A. with the right to purchase a determined number of Fiat S.p.A. ordinary shares at the fixed price of €13.37 per share. In
particular, the 10,000,000 options granted to employees and the 5,000,000 options granted to Mr. Marchionne 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.
In addition, 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.
Fiat S.p.A. Statutory Financial Statements at 31 December 2008 297