DHL 2009 Annual Report Download - page 207

before the end of the lock-up period.  e average (closing) price is
calculated as the average closing price of Deutsche Post shares in
Deutsche Börse ’s Xetra trading system.
 e absolute performance target is met if the closing price of
the Deutsche Post share is at least , ,  or   above the issue
price.  e relative performance target is tied to the performance of
the shares in relation to the Dow Jones   Index (,
 ). It is met if the share price equals the index
performance during the performance period or if it outperforms
the index by at least  .
A maximum of four out of every six  can be “earned” via
the absolute performance target, and a maximum of two via the
relative performance target. If neither an absolute nor a relative per-
formance target is met by the end of the lock-up period, the  of
the related tranche will expire, and no replacement or compensa-
tion of any form will be provided. More details on the  
tranches are shown in the following table:
 
Stock options Tranche 2006 Tranche 2007 Tranche 2008 Tranche 2009
Grant date 1 July 2006 1 July 2007 1 July 2008 1 July 2009
Issue price € 20.70 € 24.02 €18.40 € 9.52
Lock-up expires 30 June 2009 30 June 2010 30 June 2011 30 June 2013
 e fair value of the   Plan and the Long Term Incen-
tive Plan for members of the Board of Management  
was determined using a stochastic simulation model. As a result,
an expense of   million had to be recognised for  nancial year
 (previous year:   million). For further disclosures on share
based remuneration of members of the Board of Management see
Note ..
For the   and the   Plan (Board of Manage-
ment and executives) a provision was recognised as at the balance
sheet date in the amount of   million (previous year:   million).
 Related-party disclosures
. Related-party disclosures (companies and Federal Republic
of Germany)
All companies classi ed as related parties that are controlled
by the Group or on which the Group can exercise signi cant in u-
ence are recorded in the list of shareholdings together with informa-
tion on the equity interest held, their equity and their net pro t or
loss for the period, broken down by geographical areas.
 e  has been measured using investment techniques
by applying option pricing models (fair value measurement). No
sta costs were recognised for the options forfeited in  nancial
year  (previous year:   million). As in the previous year, no
sta costs were recognised for  under this plan, either. Further
details on share-based remuneration of members of the Board of
Management can be found in Note .
  Plan for executives
 e  Plan supersedes the  , under which options
could last be issued in . As at  July , selected executives
received stock appreciation rights under the new plan.  is gives
executives the chance to receive a cash payment within a de ned
period in the amount of the di erence between the respective price
of Deutsche Post shares and the  xed issue price, if demanding per-
formance targets were met.
Long-Term Incentive Plan   for members
of the Board of Management
 e   supersedes the  , under which options
could last be issued in . As at  July , the members of the
Board of Management received stock appreciation rights under the
new plan. Each  under the   entitles the holder to re-
ceive a cash settlement equal to the di erence between the average
of closing prices of the Deutsche Post share during the last  ve trad-
ing days before the exercise date and the issue price of the .
As in the past, the members of the Board of Management must
each personally invest   of their annual target salary for each
tranche.  e number of  issued to the members of the Board
of Management will be determined by the Supervisory Board or its
Executive Committee as each tranche is issued.  e other essential
features of the stock option plan have been retained. For example,
following a three-year lock-up period that begins on the issue date,
the  granted until  can be fully or partly exercised within
a period of two years only if an absolute or relative performance
target is achieved at the end of the lock-up period. Any  not
exercised during this two-year period will be forfeited. Pursuant
to the Gesetz zur Angemessenheit der Vorstandsvergütung (German
act on the appropriateness of management board remuneration) the
lock-up period for  issued in  was extended to four years.
To determine how many – if any – of the granted  can be
exercised, the average share price or the average index is compared
for the reference period and the performance period.  e refer-
ence period comprises the last  consecutive trading days before
the issue date.  e performance period is the last  trading days
Deutsche Post DHL Annual Report 
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