Chrysler 2009 Annual Report Download - page 197

196 FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2009
NOTES
The contractual terms of the 2008 plan are as follows:
Strike Number
price of options Vesting
Plan Recipient Expiry date (€) granted Vesting date portion
Stock Option July 2008 Managers 3 November 2014 10.24 1,418,500 1st Quarter 2009 (*) 18%*NMC
1st Quarter 2010 (*) 41%*NMC
1st Quarter 2011 (*) 41%*NMC
(*) On approval of the prior year’s Consolidated financial statements, subject to the continuation of the professional relationship.
A summary of outstanding stock options at 31 December 2009 is as follows:
Managers compensation Compensation as member of the Board
Options Options Average remaining Options Options Average remaining
Exercise outstanding at outstanding at contractual life outstanding at outstanding at contractual life
price (€) 31 December 2009 31 December 2008 (in years) 31 December 2009 31 December 2008 (in years)
6.583 - - - 10,670,000 10,670,000 6.0
10.24 956,530 1,414,000 4.8 - - -
10.397 845,000 921,500 0.7 - - -
12.699 - - - 500,000 500,000 -
13.370 6,536,875 9,497,500 4.8 8,750,000 10,000,000 4.8
16.526 - 1,044,000 - - - -
24.853 - 50,000 - - - -
Total 8,338,405 12,927,000 19,920,000 21,170,000
Changes during the year are as follows:
Managers compensation Compensation as member of the Board
Average Average
Number of options exercise price (€) Number of options exercise price (€)
Outstanding at the beginning of the year 12,927,000 13.11 21,170,000 9.93
Granted - - - -
Forfeited (3,494,595) 12.90 (1,250,000) 13.37
Exercised - - - -
Expired (1,094,000) 16.91 - -
Outstanding at 31 December 2009 8,338,405 12.71 19,920,000 9.72
Exercisable at 31 December 2009 845,000 10.397 500,000 12.699
Exercisable at 31 December 2008 2,015,500 13.93 11,170,000 6.86
The options forfeited during the year consist of unvested options regarding employees who have left the Group and options not vesting during the year due
to the fact that certain non-market conditions were not reached for the November 2006 and July 2008 plans.
As discussed under Significant accounting policies, in the case of stock option the Group applies IFRS 2 to all those stock options granted after 7 November
2002 which had not yet vested at 1 January 2005, namely the July 2004 Revised, November 2006 and July 2008 stock option plans. More specifically,
for the November 2006 and July 2008 plan, since the performance objectives relating to the tranche vesting in the first quarter of 2010 were not reached,
the likelihood that subsequent tranches will vest has been revised; as a consequence, the accrual of฀€14 million in 2009 made in previous periods for the
nominal costs relating to those tranches was released to income by the Group at the end of 2009 (€18 million in 2008). As a consequence the net income
recognised in the income statement in 2009 for stock options linked to Fiat S.p.A. ordinary shares amounts to฀€7 million (€3 million in 2008).