ING Direct 2009 Annual Report Download - page 187

Summary of stock options outstanding and exercisable
2009
Range of exercise price in euros
Options
outstanding
as at 31
December 2009
Weighted
average
remaining
contractual life
Weighted
average
exercise
price
Options
exercisable
as at 31
December 2009
Weighted
average
remaining
contractual life
Weighted
average
exercise
price
0.00 – 5.00 18,394,697 3.57 2.88
5.00 – 10.00 7,257,362 8.76 9.17 6,826,298 3.18 9.20
10.00 – 15.00 11,132 ,430 3.51 14.20 10,802,627 3.35 14.20
15.00 – 20.00 35,095,363 6.19 17. 29 17, 396,930 4.50 17.77
20.00 – 25.00 28,576,153 4.02 23.38 15,861,602 1.73 22.38
25.00 – 30.00 21,878,481 4.50 25.82 21,130,364 4.40 25.83
122,334,486 72,017,821
Summary of stock options outstanding and exercisable (1)
2008
Range of exercise price in euros
Options
outstanding as at
31 December
2008
Weighted
average
remaining
contractual life
Weighted
average
exercise
price
Options
exercisable as
at 31 December
2008
Weighted
average
remaining
contractual life
Weighted
average
exercise
price
0.00 – 15.00 5,772,054 4.19 12.11 5,772,054 4.19 12.11
15.00 – 20.00 9,425,787 4.70 18.69 9,149,037 4.55 18.69
20.00 – 25.00 28,055,499 7.49 22.49 14,212,102 5.83 23.22
25.00 – 30.00 15,390,859 2.74 28.57 14,729,456 2.44 28.71
30.00 – 35.00 23,157,582 7.71 32.46 71,400 2.57 33.06
35.00 – 40.00 5,461,600 2.13 35.51 5,461,600 2.13 35.51
87, 263,381 49,395,649
(1) 2008 reflects original numbers and amounts, not restated for the rights issue adjustment factor.
Summary of stock options outstanding and exercisable (1)
2007
Range of exercise price in euros
Options
outstanding as at
31 December
2007
Weighted
average
remaining
contractual life
Weighted
average
exercise
price
Options
exercisable as
at 31 December
2007
Weighted
average
remaining
contractual life
Weighted
average
exercise
price
0.00 – 15.00 6,236,710 5.19 12.02 6,236,710 5.19 12.02
15.00 – 20.00 9,773,356 5.55 18.47 9,773,356 5.55 18.47
20.00 – 25.00 15,180,545 6.84 23.10 1,556,832 3.21 21.83
25.00 – 30.00 15,338,397 3.46 28.72 15,206,363 3.42 28.74
30.00 – 35.00 24,726,711 8.69 32.47 77,30 0 3.59 33.08
35.00 – 40.00 5,632,834 3.14 35.51 5,632,834 3.14 35.51
76,888,553 38,483,395
(1) 2007 reflects original numbers and amounts, not restated for the rights issue adjustment factor.
The aggregate intrinsic value of options outstanding and exercisable as at 31 December 2009 was EUR 74 million and nil, respectively.
As at 31 December 2009 total unrecognised compensation costs related to stock options amounted to EUR 62 million
(2008: EUR 94 million; 2007: EUR 69 million). These costs are expected to be recognised over a weighted average period of 1.6 years
(2008: 1.8 years; 2007: 1.7 years). Cash received from stock option exercises for the year ended 31 December 2009 was nil
(2008: EUR 22 million; 2007: EUR 131 million).
The fair value of options granted is recognised as an expense under staff expenses and is allocated over the vesting period of the options.
The fair values of the option awards have been determined by using a Monte Carlo simulation. This model takes the risk free interest rate
into account (2.64% to 4.62%), as well as the expected life of the options granted (5 year to 8 years), the exercise price, the current share
price (EUR 2.90 - EUR 26.05), the expected volatility of the certificates of ING Group shares (25% - 84%) and the expected dividends yield
(0.94% to 8.99%). The source for implied volatilities used for the valuation of the stock options is ING’s trading system. The implied
volatilities in this system are determined by ING’s traders and are based on market data implied volatilities not on historical volatilities.
Due to timing differences in granting option rights and buying shares to hedge them, an equity difference can occur if shares are
purchased at a different price than the exercise price of the options. However, ING Group does not intentionally create a position and
occurring positions are closed as soon as possible. If option rights expire, the results on the (sale of) shares which were bought to hedge
these option rights are recognised in Shareholders’ equity.
2.1 Consolidated annual accounts
ING Group Annual Report 2009 185
Notes to the consolidated profit and loss account of ING Group (continued)