Nokia 2005 Annual Report Download - page 183

Notes to the Consolidated Financial Statements (Continued)
24. Share-based payment (Continued)
performance period of the plan. For the 2004 plan the performance period consists of the fiscal
years 2004 through 2007 and for the 2005 plan the years 2005 through 2008.
For both the 2004 and 2005 plans, if either of the required performance levels are achieved, the
first settlement will take place after two years’ interim measurement period and is limited to a
maximum vesting equal to the Threshold Number. The second and final settlement, if any, will be
after the close of the four year performance period. Any settlement made after the Interim
Measurement Period, will be deducted from the final settlement after the full Performance Period.
The following tables give certain information about our 2004 and 2005 performance share plans.
Total Plan Size Number of Interim
(Threshold participants Measurement Performance 1st (Interim) 2nd (Final)
Plan name Number) (approx.) Period Period Settlement Settlement
2004 .................. 3,685,063 11,000 2004-2005 2005-2008 2006 2009
2005 .................. 4,357,754 12,000 2005-2006 2006-2009 2007 2010
Performance criterion(1) 2004 Plan 2005 Plan
Threshold EPS growth Interim Measurement Period ..... 0.80 0.75
Performance Performance Period ............. 0.84 0.82
Vesting (no. of shares)(2) ......... 1.84 million 2.18 million
Average Annual Interim Measurement Period 4% 3%
Net Sales Performance Period ............. 4% 3%
Growth Vesting (no. of shares)(2) ......... 1.84 million 2.18 million
Maximum EPS growth Interim Measurement Period ..... 0.94 0.96
Performance Performance Period ............. 1.18 1.33
Vesting (no. of shares)(2) ......... 7.37 million 8.72 million
Average Annual Interim Measurement Period 16% 12%
Net Sales Performance Period ............. 16% 12%
Growth Vesting (no. of shares)(2) ......... 7.37 million 8.72 million
(1) Both the EPS and Average Annual Net Sales Growth criteria have an equal weight of 50%.
(2) A performance share represents the grant at threshold. At maximum performance, the
settlement amounts to 4 times the number of shares originally granted at threshold.
In accordance with the plan rules, prior to vesting, the Group will determine the method by which
the shares are obtained for delivery, which may also include cash settlement. Until the shares are
transferred and delivered, the recipients will not have any shareholder rights, such as voting or
dividend rights associated with respect to the performance shares.
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