DHL 2006 Annual Report Download - page 137

Notes
Share-based remuneration system
Number Stock options
Stock appreciation
rights (SARs)
Tranche 2001
Board of Management 466,908 0
Other senior executives 5,070,576 345,432
Tranche 2002
Board of Management 1,223,418 0
Other senior executives 9,082,620 446,934
Tranche 2003
Board of Management 1,096,236 0
Other senior executives 11,953,356 731,736
Tranche 2004
Board of Management 841,350 0
Other senior executives 8,486,946 1,116,374
Tranche 2005
Board of Management 829,362 0
Other senior executives 9,233,310 1,216,320
e stock options issued under both stock option plans can only be exercised
within a two-year period following the expiration of a lock-up period of three
years aer the relevant grant date. e options can only be exercised if the
absolute or the relative performance targets have been satised at the end of the
lock-up period. Unexercised options lapse aer the end of the exercise period.
e average price or average index performance during two periods (reference
period = exercise price; performance period = nal price) is compared to
establish whether and to what extent the performance targets have been
satised. e reference period is the  consecutive trading days prior to the
issue date; the performance period is the last  trading days prior to expiration
of the lock-up period. e average price is calculated as the average closing
price of Deutsche Post stock in Deutsche Börse AG’s Xetra trading system.
e absolute performance target depends on the performance of Deutsche
Post stock during the performance period, and is deemed to have been
satised if the increase in the price of Deutsche Post stock exceeds , , ,
or  or more (expressed as the nal price divided by the exercise price).
e relative performance target is tied to the performance of the shares versus
the performance of the Dow Jones EURO STOXX Total Return Index. e
relative performance target is satised if the performance of Deutsche Post
stock during the above-mentioned period matches the performance of the
Index or outperforms it by at least .
For every six options, a maximum of four may be earned on the basis of the
absolute performance target, and a maximum of two on the basis of the
relative performance target. e respective stock options of the tranche
concerned lapse without compensation if the absolute or the relative
performance targets are not satised by the end of the lock-up period.
Each option entitles the holder either to purchase one share in the company
or to receive a cash settlement in the amount of the dierence between the
exercise price and the average price of the stock during the last ve trading days
prior to the exercise date, at the Board of Management’s discretion.
Information on the individual tranches is presented in the following tables:
Stock options
SOP 2000 SOP 2003
Tranche 2001 Tranche 2002 Tranche 2003 Tranche 2004 Tranche 2005
Grant date March 15, 2001 July 1, 2002 August 1, 2003 July 1, 2004 July 1, 2005
Stock options granted 5,537,484 10,306,038 13,049,592 9,328,296 10,062,672
Stock appreciation rights (SARs) granted 345,432 446,934 731,736 1,116,374 1,216,320
Exercise price €23.05 €14.10 €12.40 €17.00 €19.33
Lock-up expires March 14, 2004 June 30, 2005 July 31, 2006 June 30, 2007 June 30, 2008
Number
Outstanding stock options at beginning of year 662,789 2,946,797 11,571,618 8,605,470 9,999,180
Outstanding SARs at beginning of year 27,040 148,558 577,770 680,318 1,191,264
Options exercised 35,574 2,409,323 7,241,224 Not yet exercisable Not yet exercisable
SARs exercised 1,116 28,498 287,990 Not yet exercisable Not yet exercisable
Options lapsed 627,215 0 370,968 683,694 594,462
of which lapsed before end of the lock-up period 0 0 370,968 683,694 594,462
of which lapsed because performance targets not met 0 0 0 Still in lock-up period Still in lock-up period
of which lapsed after end of lock-up period 627,215 0 0 Still in lock-up period Still in lock-up period
SARs lapsed 25,924 0 71,982 85,128 431,238
of which lapsed before end of the lock-up period 0 0 71,982 85,128 431,238
of which lapsed because performance targets not met 0 0 0 Still in lock-up period Still in lock-up period
of which lapsed after end of lock-up period 25,924 0 0 Still in lock-up period Still in lock-up period
Outstanding options at end of year – – – 7,921,776 9,404,718
Outstanding SARs at end of year – – – 595,190 760,026
Options exercisable at end of year 0 537,474 3,959,426 Not yet exercisable Not yet exercisable
SARs exercisable at end of year 0 120,060 217,798 Not yet exercisable Not yet exercisable
Unexercised options from tranche  lapsed without compensation
following the expiration of the exercise period on March , .
Starting in scal year , the SOP has been measured using investment
techniques by applying option pricing models (fair value measurement). e
expense of  million attributable to scal year  (previous year:
 million), comprising  million for the stock options (previous year:
 million) and  million for the SARs (previous year:  million), was
reported under sta costs.
133
Deutsche Post World Net Annual Report 2006
Consolidated Financial Statements