Chrysler 2009 Annual Report Download - page 199

198 FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2009
NOTES
A summary of outstanding stock options under the CNH Directors’ Plan at 31 December 2009 and 2008 is as follows:
At 31 December 2009 At 31 December 2008
Weighted Average Weighted Average
remaining emaining
Options contractual Options contractual
Exercise price (in USD) outstanding life (in years) outstanding life (in years)
10.22 – 16.00 26,063 9.2 11,358 8.0
16.01 – 26.00 30,612 7.2 19,656 6.7
26.01 – 40.00 40,295 6.6 40,295 7.6
40.01 – 56.00 11,162 8.1 11,162 9.1
56.01 – 66.54 9,287 5.5 10,037 6.1
Total 117,419 92,508
Changes during the year under the CNH Directors’ Plan are as follows:
2009 2008
Average Average
Number exercise price Number exercise price
of options (in USD) of options (in USD)
Outstanding at the beginning of the year 92,508 31.01 73,841 30.93
Granted 29,661 15.51 18,667 31.35
Forfeited - - - -
Exercised (4,000) 9.23 - -
Expired (750) 77.05 - -
Outstanding at the end of the year 117,419 27.54 92,508 31.01
Exercisable at the end of the year 117,419 27.54 64,508 32.45
The CNH Equity Incentive Plan (the “CNH EIP”)
The plan provides for grants of various types of awards on specific performance targets for the Sector linked to the IFRS results of CNH, to officers and
employees of CNH and its subsidiaries. As of 31 December 2009, CNH has reserved 15,900,000 shares for the CNH EIP (15,900,000 shares at December
31, 2008). The plan envisages stock option and share incentives as described below.
Stock option plan
Prior to 2006, certain stock option grants were issued which vest rateably over four years from the grant date and expire after ten years. Additionally, certain
performance-based options, which had an opportunity for accelerated vesting tied to the attainment of specified performance criteria were issued; however,
the performance criteria were not achieved. In any event, vesting of these performance-based options occurred seven years from the grant date. All options
granted prior to 2006 have a contract life of ten years.
Except as noted below, the exercise prices of all options granted under the CNH EIP are equal to or greater than the fair market value of CNH Global N.V.
common shares on the respective grant dates. During 2009 and 2001, CNH granted stock options with an exercise price less than the quoted market price
of CNH common shares at the date of grant. The exercise price of these grants was based upon the average closing price of CNH common shares on the
New York Stock Exchange for the thirty-day period preceding the date of grant.
Beginning in 2006, CNH began to issue awards under plans providing performance-based stock options, performance-based shares and cash. In April, 2009,
CNH granted approximately 4.1 million performance-based stock options (at specific target award levels) under the CNH EIP. Target performance levels for
2009 were not fully achieved, resulting in only a partial vesting. One-third of the options vested with the approval of 2009 results by the Board of Directors
in January 2010. The remaining options will vest equally on the first and second anniversary of the initial vesting date. It is expected that 2.2 million of these
options will vest based on CNH’s 2009 results. Options granted under the CNH EIP in 2009 have a contractual life of five years from the initial vesting date.