Nokia 2006 Annual Report Download - page 177

Notes to the Consolidated Financial Statements (Continued)
23. Sharebased payment (Continued)
Stock options
Nokia’s outstanding global stock option plans were approved by the Annual General Meetings in the
year when each plan was launched, i.e., in 2001, 2003 and 2005.
Each stock option entitles the holder to subscribe for one new Nokia share. Under the 2001 stock
option plan, the stock options are transferable by the participants. Under the 2003 and 2005 plans,
the stock options are nontransferable. All of the stock options have a vesting schedule with a 25%
vesting one year after grant and quarterly vesting thereafter, as specified in the table below. The
stock options granted under the plans generally have a term of five years. The Group determines the
compensation expense for the Global plans on a straightline basis over the vesting period for each
quarterly lot.
The determination of the exercise prices follows the rule approved by the Annual General Meeting for
each plan. The exercise prices are determined at the time of the grant, on a quarterly basis equalling
the trade volume weighted average price of a Nokia share on the Helsinki Stock Exchange during the
trading days of the first whole week of the second month (i.e. February, May, August or November)
of the respective calendar quarter following the approval of the award.
The exercises based on the stock options issued under the 2001, 2003 and 2005 stock option plans
are settled with newly issued Nokia shares which entitle the holder to a dividend for the financial
year in which the subscription occurs. Other shareholder rights commence on the date on which the
shares subscribed for are registered with the Finnish Trade Register.
Pursuant to the stock options issued, an aggregate maximum number of 91 656 401 new Nokia
shares may be subscribed for, representing EUR 5 499 384 of the share capital and approximately
2.3% of the total number of votes at December 31, 2006. During 2006 the exercise of
3 046 079 options resulted in the issuance of 3 046 079 new shares and an increase of the share
capital of the parent company of EUR 182 765.
There were no other stock options or convertible bonds outstanding as of December 31, 2006, which
upon exercise would result in an increase of the share capital of the parent company.
Outstanding global stock option plans of the Group, December 31, 2006
The table below sets forth certain information relating to the stock options outstanding at
December 31, 2006.
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