Mercedes 2008 Annual Report Download - page 184

180
Expenses / (income) in the consolidated statements of income
resulting from rights of members of the Board of Management
are as follows:
The details of the overview do not represent any paid or committed
remuneration, but refer to income and expense which has been
calculated according to IFRS. Details regarding remuneration in
2008 can be found in the Remuneration Report (see page 122).
Performance Phantom Share Plans. In 2008, the Group adopted
a Performance Phantom Share Plan (PPSP), similar to that used in
2007, 2006 and 2005, under which eligible employees are grant-
ed phantom shares entitling them to receive cash payments after
four years. The amount of cash paid to eligible employees is
based on the number of vested phantom shares (determined over
a three-year performance period) multiplied by the quoted price
of Daimler’s Ordinary Shares (calculated as an average price over
a specified period at the end of the four years of service). The
number of phantom shares that vest will depend on the achieve-
ment of corporate performance goals, based on competitive and
internal benchmarks (return on net assets and return on sales).
The Group recognizes a provision for awarding the PPSP. Since
payment per vested phantom share depends on the quoted price
of one Daimler Ordinary Share, the quoted price represents the
fair value of each phantom share. The proportionate remuneration
expenses for the years 2005 to 2008 are determined on the
basis of the year-end quoted price of Daimler Ordinary Shares
and the estimated target achievement.
Stock Option Plans. In April 2000, the Group’s shareholders
approved the Daimler Stock Option Plan (SOP), which grants stock
options for the purchase of Daimler Ordinary Shares to eligible
employees. Options granted under the SOP are exercisable at a
reference price per Daimler Ordinary Share, which is determined
in advance, plus a 20% premium. The options become exercisable
in equal installments at the earliest on the second and third
anniversaries from the date of grant. All unexercised options expire
ten years after the date of grant. If the market price per Daimler
Ordinary Share on the date of exercise is at least 20% higher than
the reference price, the holder is entitled to receive a cash pay-
ment equal to the original exercise premium of 20%. After 2004 no
new stock options were granted.
In the event of exercise, the Group has generally issued common
shares so far.
1.2
.
0.8
Dr. Rüdiger Grube
2006
Günther Fleig
2006
Dr. Dieter Zetsche
2006 200720072007
(1.4)
-
(2.3)
(1.3)
.
(2.3)
(2.7)
(0.2)
(4.5)
0.6
.
0.4
0.6
-
0.4
2.5
-
1.5
2.5
.
1.5
5.1
0.1
3.0
PPSP
SAR
SOP
in millions of €
2008 2008 2008
0.6
.
0.1
Dr. Thomas Weber
2006
Bodo Uebber
2006
Andreas Renschler
2006 200720072007
(1.3)
-
(1.8)
(1.5)
.
(1.8)
(1.4)
.
–
0.7
.
0.3
0.6
.
0.3
2.5
-
1.2
2.7
.
1.2
2.6
.
.
PPSP
SAR
SOP
in millions of €
2008 2008 2008
0.7
-
0.1
Thomas W. Sidlik
2006
Eric R. Ridenour
2006
Thomas W. LaSorda
2006 200720072007
-
-
-
-
-
-
-
-
-
0.5
-
0.1
0.6
.
0.4
0.8
0.1
1.5
0.6
-
.
0.9
-
.
PPSP
SAR
SOP
in millions of €
2008 2008 2008