Tiscali 2007 Annual Report Download - page 142

31. Stock options
Upon the proposal of the Board of Directors, on 3 May 2007
the shareholders’ meeting approved a stock option plan in fa-
vour of the Chief Executive Officer and key employees of the
Company and its Italian subsidiaries, with the aim of aligning
management’s interests with the creation of value for the Ti-
scali Group and its shareholders, encouraging the achieve-
ment of the strategic objectives. With regards to the Chief
Executive Officer, the implementation of the plan, besides re-
presenting a valid incentive tool in line with market practices,
represents the execution of a precise contractual obligation
undertaken by the Company at the time of the formation of
the management relationship.
The plan envisages the allocation:
3to the Chief Executive Officer, of 3,593,143 options for the
purchase of the same amount of ordinary shares in the Com-
pany, deriving from purchases of own shares which the Com-
pany will carry out on the market in compliance with Article
2357 of the Italian Civil Code and on the basis of the autho-
rization of the shareholders’ meeting. The exercise of these
options is dependent on the achievement of the performance
objectives linked to the budget established by the Board of
Directors, involving 40% with reference to the objectives
established for 2006, which are understood to have been
achieved, and the remaining 60% with reference to the ob-
jectives established for 2007.
3to the employees, of up to a maximum of 4,244,131 options
for the subscription of the same amount of newly-issued or-
dinary shares in the Company, deriving from a share capital
increase reserved in accordance with Article 2441.8 of the
Italian Civil Code resolved by the shareholders’ meeting.
By way of implementing the afore-mentioned plan, the Board of
Directors:
TISCALI S.P.A. – SINANCIAL STATEMENTS AT 31 DECEMBER 2007
141
BALANCE SHEET VALUES Notes 31.12.2007 31.12.2006
Trade Financial Trade Financial Stock Option Trade Financial Trade Financial
EUR (000) receivables receivables payables payables reserve receivables receivables payables payables
Energy Byte S.r.l 1 - 112 - - - - 111 - -
Quinary SpA 1 122 328 7 268 - 32 235 7 -
Tiscali B.V. 1 - - - - - 1,140 - 149 8
Tiscali Business Gmbh 1 505 - 546 - - 9,305 - 546 -
Tiscali Deutschland Gmbh 1 4,151 - - - - 12,755 - 30 -
Tiscali Gmbh 1 10,405 - 109 - -----
Tiscali Espana SLU 1 315 - 5 - - 315 - 5 -
Tiscali International BV 1 - - 7,960 234,270 - 125 - 8,085 206,223
Tiscali International Network BV 1 1,715 - 873 - - 973 - 873 1,839
Tiscali International Network SA 1 - - - 16 ----16
Tiscali International Network SpA 1 137 663 - 3 - 137 - - -
Tiscali Italia S.p.A. 1 2,733 31,948 2,179 509 - 4,198 3,892 83 3
Tiscali Media Srl 1 - 321 - - - - 153 - -
Tiscali Motoring Srl 1 - 351 - 69 - - 387 - 74
Tiscali Services S.p.A. 1 526 19,421 2,140 927 - 173 - 1,181 -
Tiscali Telecomunicaciones SA 1 - - - - - - 1 - -
Tiscali UK Holdings Ltd 1 774 - - - - 774 - - -
Tiscali UK Ltd 1 22,185 - 18,362 - - 10,320 - 3,876 -
Total Group companies 43,568 53,144 32,182 236,062 - 40,249 4,779 14,836 208,162
Bizzarri Francesco 2 - - 25 - -----
Borghesi e Colombo Associati Srl 3 - - 270 - -----
Stock options CEO 4 - - - - 447 - - - -
Stock options - employees 4 - - - - 439 - - - -
Other related parties - - 295 - 886 - - - -
Total Group companies and
other related parties 843,568 53,144 32,477 236,062 886 40,249 4,779 14,836 208,162
(1) Group companies
(2) Mr. F. Bizzarri, member of Tiscali Spa’s Board of Directors, has stipulated an IPTV consultancy contract with the Parent Company and with the subsidiary.
(3) Studio Borghesi e Colombo Associati Srl: the director Arnaldo Borghesi, member of Tiscali Spa’s Board of Directors, provides Tiscali Spa with consultancy services as part of extra-
ordinary finance transactions.
(4) Stock option – CEO and employees. Cost recorded in the item Other provisions in the Parent Company’s financial statements.