Chrysler 2010 Annual Report Download - page 343

FIAT S.P.A.
STATUTORY
FINANCIAL
STATEMENTS AT
31 DECEMBER
2010
NOTES
342
On 26 February 2008, the Board of Directors of Fiat S.p.A. passed an incentive plan which was subsequently approved by Shareholders in their annual
general meeting on 31 March 2008, by which an overall maximum of 4 million financial instruments could be assigned on a periodic basis until 2010 in
the form of stock options and/or stock appreciation rights. The plan had the aim of attracting and retaining managers in key roles who had been hired or
promoted following the granting of the stock option plan of 3 November 2006 or who had assumed greater responsibilities since the granting of the 2006
plan, and has the features of that plan in terms of performance, vesting and exercise rights. Implementing the first grant under this program on 23 July 2008,
the Board of Directors assigned 1,418,500 stock options having an exercise price of €10.24 and a vesting period of three years that was subject to achieving
certain predetermined profitability targets (Non-Market Conditions or “NMC”) in the reference period and together with rights exercisable from the date
on which the 2010 financial statements are approved. As these profitability targets had not been met at 31 December 2010, none of the rights granted to
employees vested.
The contractual terms of the 2008 plan were as follows:
Strike price Number of Vesting
Plan Beneficiary Expiry date (€) options granted Vesting date portion
Stock Option Managers 3 November 2014 10.24 1,418,500 1st Quarter 2009 (*) 18%*NMC
July 2008 (forfeited) 1st Quarter 2010 (*) 41%*NMC
1st Quarter 2011 (*) 41%*NMC
(*) On approval of the prior year’s consolidated financial statements; subject to continuation of the professional relationship.
A summary of the terms of the stock option plans outstanding at 31 December 2010 is as follows:
Managers’ compensation Compensation as member of the Board
Exercise Options Options Average remaining Options Options Average remaining
price outstanding at outstanding at contractual life outstanding at outstanding at contractual life
(€) 31 December 2010 31 December 2009 (years) 31 December 2010 31 December 2009 (years)
6.583 - - - 10,670,000 10,670,000 5.0
10.24 - 956,530 - - - -
10.397 - 845,000 - - - -
12.699 - - - - 500,000 -
13.370 2,101,250 6,536,875 3.8 6,250,000 8,750,000 3.8
Total 2,101,250 8,338,405 16,920,000 19,920,000
Changes during the year were as follows:
Managers’ compensation Compensation as member of the Board
Average Average
exercise price exercise price
Number of options (€) Number of options (€)
Outstanding at the beginning of the year 8,338,405 12.71 19,920,000 9.72
Granted - - - -
Forfeited (5,447,155) 12.79 (2,500,000) 13.37
Exercised - - - -
Expired (790,000) 10.397 (500,000) 12.699
Outstanding at 31 December 2010 2,101,250 13.37 16,920,000 9.09
Exercisable at 31 December 2010 - - 5,000,000 13.37
Exercisable at 31 December 2009 845,000 10.397 500,000 12.699
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.