Mercedes 2008 Annual Report Download - page 188

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With regard to the figures shown in the above table, it has to
be considered that benefits from the stock option plans only arise
if the Daimler share price exceeds the hurdle which has been
individually defined for each stock option plan and if the owner
of the stock option plan has realized an exercise. As variable
compensation, only the difference between the reference and
exercise price of the respective stock option plan is paid out.
The following average exercise price is only a statistical factor,
which results from the weighted average of the exercise prices
shown in the table for the basic terms of the SOP. The sum of rights
shown here is calculated from the addition of the different
amounts of options that were granted in the years 2000 to 2004.
Stock Appreciation Rights Plans.
In 1999, Daimler established a stock appreciation rights plan
(the SAR Plan 1999), which provides eligible employees of the
Group with the right to receive cash equal to the appreciation
of Daimler Ordinary Shares subsequent to the date of grant. The
stock appreciation rights granted under the SAR Plan 1999
vest in equal installments on the second and third anniversaries
of the grant date. All unexercised SARs expire ten years after
the grant date. The exercise price of a SAR is equal to the fair
market value of Daimler’s Ordinary Shares on the grant date.
On February 24, 1999, the Group issued 11.4 million SARs at
an exercise price of €89.70 each (US $98.76 for Chrysler
employees), of which 3.3 million are outstanding and exercisable
at December 31, 2008.
The fair value of the SAR Plan is taken into account in provisions
for other risks at the balance sheet date. Both the fair values and
the intrinsic values of the SARs were zero at year-end.
21. Pensions and similar obligations
The provisions for pension benefit plans and similar obligations
are comprised of the following components:
Defined pension benefit plans
The Group provides pension benefits with defined entitlements
to almost all of its employees which have to be accounted for as
defined benefit plans and are funded partially with assets. Start-
ing in 2008, the majority of the active employees are entitled to
pay-related defined pension benefits. Under these plans, employ-
ees earn benefits for each year of service. The benefits earned per
year of service are based on the salary level and age of the
respective employees.
2007
Average
exercise price
€ per share
Thomas W. Sidlik
2008
Average
exercise price
€ per share
Number of
stock options
in millions
Number of
stock options
in millions
56.54
-
-
-
56.54
56.54
3.6 years
0.6
-
-
-
0.6
0.6
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at beginning of year
Options granted
Exercised
Disposals / Forfeited
Outstanding at August 3, 2007
Exercisable at August 3, 2007
Weighted Maturity
2006
Average
exercise price
€ per share
Number of
stock options
in millions
56.54
-
-
-
56.54
57.49
4.8 years
0.6
-
-
-
0.6
0.5
At December 31,
2007
2008
3,282
848
10
4,140
3,038
790
24
3,852
Provision for pension benefits (pension plans)
Provision for other post-employment benefits
Provision for other benefits
in millions of €