DHL 2008 Annual Report Download - page 194

Deutsche Post World Net Annual Report 2008
Share-based remuneration system
Number
Stock options
Stock appreciation
rights (SAR) 1)
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
1) Due to legal restrictions SAR were granted in some countries instead of stock options.
Due to the fair value determined for the SAR no amounts were added to the provisions in 2008
(previous year: € 2 million).
 e stock options 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 grant date.  e perform-
ance period is the last  trading days before the end of the lock-up
period.  e average price is calculated as the average closing price of
Deutsche Post shares in Deutsche Börse ’s Xetra trading system.
 e absolute performance target depends on the perform-
ance of Deutsche Post shares during the performance period, and is
deemed to have been satis ed if the increase in the price of Deutsche
Post shares 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  Total Return Index.  e relative performance
target is satis ed if the performance of Deutsche Post shares 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 issue price
and the average price of the Deutsche Post shares during the last
 ve trading days prior to the exercise date, at the respective Board
member’s discretion.
pean air hub at Leipzig / Halle Airport.  e Commission concluded
that public investment amounting to some   million to  nance
the new southern runway is compatible with European law on state
aid. At the same time, it considers the  nancial guarantees granted
by Saxony to the bene t of  as inadmissible. If the grants are
statutorily incompatible state aid they will have to be paid back by
 in the opinion of the  Commission. , the Leipzig / Halle
Airport and the state of Saxony appealed against this ruling before
the European Court of First Instance. Neither the ine ectiveness of
the liability regime nor the possibly existing repayment obligation
will a ect the daily operating business of .
In October ,  Global Forwarding, along with all
other major players in the freight forwarding industry, received a
request for information from the Competition Directorate of the
European Commission, a subpoena from the  Department of
Justice’s Antitrust Division and information requests from compe-
tition authorities in other jurisdictions in connection with a formal
investigation into the setting of surcharges and fees in the inter-
national freight forwarding industry. In January , an antitrust
class action law suit was initiated in the New York district court on
behalf of purchasers of freight forwarder services in which Deutsche
Post  and  are named as defendants.  is civil law suit appears
to be based on the fact that anti-trust investigations are on-going,
but not on any known outcome or quanti ed loss.  e Group is not
able to predict or comment on the outcome of the investigations or
the merits of the class action law suit, but believes its  nancial expo-
sure in relation to both is limited and has not, therefore, taken any
provision in its accounts.
55 Share-based remuneration
Share-based remuneration system for executives
(2003 Stock Option Plan)
On the basis of the  Stock Option Plan  resolved
by the Annual General Meeting on  June , no further options
will be granted under the previous  plan. Options were granted
under the   for the  rst time on  August  (Tranche
).  e second tranche (Tranche ) was granted to execu-
tives on  July .  e third – and last – tranche under this plan
(Tranche ) was granted on  July .
 e   allows for a larger number of participants and
a change in the percentage distributions of the stock options among
the di erent groups of participants, in addition to an increase in
the total stock options to be issued.  e grant of stock options to
members of the Board of Management and executives in Group
management level  still requires participants to invest in shares of
Deutsche Post . Participants in Group management levels  and 
receive stock options without any requirement to buy shares.
190