Chrysler 2010 Annual Report Download - page 223

FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2010
NOTES
222
A summary of outstanding stock options under the CNH Directors’ Plan at 31 December 2010 and 2009 is as follows:
At 31 December 2010 At 31 December 2009
Weighted Average Weighted Average
remaining remaining
Options contractual life Options contractual life
Exercise price (in USD) outstanding (in years) outstanding (in years)
10.22 - 16.00 - - 26,063 9.2
16.01 - 26.00 29,076 6.7 30,612 7.2
26.01 - 40.00 44,188 6.4 40,295 6.6
40.01 - 56.00 11,162 7.1 11,162 8.1
56.01 - 66.54 6,414 6.9 9,287 5.5
Total 90,840 117,419
Changes during the year under the CNH Directors’ Plan are as follows:
2010 2009
Average Average
Number of exercise price Number of exercise price
options (in USD) options (in USD)
Outstanding at the beginning of the year 117,419 27.54 92,508 31.01
Granted 12,904 26.73 29,661 15.51
Forfeited - - - -
Exercised (36,610) 15.61 (4,000) 9.23
Expired (2,873) 59.17 (750) 77.05
Outstanding at the end of the year 90,840 31.24 117,419 27.54
Exercisable at the end of the year 90,840 31.24 117,419 27.54
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 2010, CNH has reserved 15,900,000 shares for the CNH EIP (15,900,000 shares at
31 December 2009). The plan envisages stock options 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
2010, CNH granted approximately 1.5 million performance-based stock options (at target award levels) under the CNH EIP. One-third of the options vested
in February 2011 following the approval of 2010 results by the Board of Directors which met in February 2011. The remaining options will vest equally on the
first and second anniversary of the initial vesting date. As the CNH’s 2010 results exceeded the target performance levels, it is expected that 2.9 million of
these options will vest. Options granted under the CNH EIP in 2010 have a contractual life of five years from the initial vesting date.