Nokia 2008 Annual Report Download - page 203

22. Sharebased payment (Continued)
(4)
Includes also performance shares vested under other than global equity plans.
(5)
Based on the performance of the Group during the Interim Measurement Period 20052006, under
the 2005 Performance Share Plan, both performance criteria were met. Hence, 3 980 572 Nokia
shares equalling the threshold number were delivered in 2007. The performance shares related to
the interim settlement of the 2005 Performance Share Plan are included in the number of
performance shares outstanding at December 31, 2007 as these performance shares will remain
outstanding until the final settlement in 2009. The final payout, in 2009, if any, will be adjusted
by the shares delivered based on the Interim Measurement Period.
(6)
Includes performance shares under Performance Share Plan 2006 that vested on December 31,
2008.
Based on the performance of the Group during the Performance Period 20052008, under the 2005
Performance Share Plan and during the Performance Period 20062008 under the Performance Share
Plan 2006, both threshold performance criteria were exceeded. The shares under Performance Share
Plan 2005 will vest as of the date of the Annual General Meeting on April 23, 2009 and the shares
under Performance Share Plan 2006 have vested December 31, 2008. Hence 16 million Nokia shares
are expected to be delivered in 2009.
Restricted shares
The Group has granted restricted shares under global plans to recruit, retain, reward and motivate
selected high potential employees, who are critical to the future success of Nokia. It is Nokia’s
philosophy that restricted shares will be used only for key management positions and other critical
resources. The outstanding global restricted share plans, including their terms and conditions, have
been approved by the Board of Directors. A valid authorization from the Annual General Meeting is
required, when the plans are settled by using Nokia newly issued shares or treasury shares. The
Group may also settle the plans by using cash instead of shares.
All of our restricted share plans have a restriction period of three years after grant, after which period
the granted shares will vest. Once the shares vest, they will be delivered to the participants. Until the
Nokia shares are delivered, the participants will not have any shareholder rights, such as voting or
dividend rights, associated with the restricted shares.
Restricted Shares Outstanding as at December 31, 2008
(1)
Number of
Restricted
Shares
Weighted
average grant
date fair value
EUR
(2)
Restricted Shares at January 1, 2006 ............................ 5 185 676
Granted ..................................................... 1669050 14.71
Forfeited .................................................... 455100
Vested ...................................................... 334750
Restricted Shares at December 31, 2006 ......................... 6 064 876
Granted ..................................................... 1749433 24.37
Forfeited .................................................... 297900
Vested ...................................................... 1521080
Restricted Shares at December 31, 2007 ......................... 5 995 329
Granted
(3)
.................................................... 4799543 13.89
Forfeited .................................................... 358747
Vested ...................................................... 2386728
Restricted Shares at December 31, 2008 ......................... 8 049 397
F59
Notes to the Consolidated Financial Statements (Continued)