ING Direct 2008 Annual Report Download - page 170

2.1 Consolidated annual accounts
Exposure arising out of the share plan is not hedged. The obligations with regard to these plans will in the future be funded either by
cash or shares from the delta hedge portfolio at the discretion of the holder. On 31 March 2008, 1,786,762 million own shares were
issued in relation to the vesting of share plans.
The option rights are valid for a period of five or ten years. Option rights that are not exercised within this period lapse. Option rights
granted will remain valid until the expiry date, even if the option scheme is discontinued. The option rights are subject to certain
conditions, including a certain continuous period of service. The exercise prices of the options are the same as the quoted prices of
ING Group shares at the date on which the options are granted.
The entitlement to the share awards is granted conditionally. If the participant remains in employment for an uninterrupted period of
three years from the grant date, the entitlement becomes unconditional. In 2008, 211,049 shares (2007: 139,113; 2006: 52,100) have
been granted to the members of the Executive Board and 3,380,706 shares (2007: 2,415,649; 2006: 2,432,686) have been granted
to senior management and other employees remaining in the service of ING Group.
Every year, the ING Group Executive Board will decide whether the option and share schemes are to be continued and, if so, to what extent.
Changes in option rights outstanding
Options outstanding (in numbers) Weighted average exercise price (in euros)
2008 2007 2006 2008 2007 2006
Opening balance 76,888,553 74,175,909 85,128,950 26.66 25.99 24.42
Granted 14,905,232 12,139,472 13,872,880 21.85 32.13 32.78
Exercised –1,225,856 –7,163,332 –17,213,518 18.09 19.73 20.64
Forfeited –3,304,548 –2,263,496 –1,338,877 28.87 27.68 25.78
Expired –6,273,526 25.99
Closing balance 87,263,381 76,888,553 74,175,909 25.93 26.66 25.99
The weighted average share price at the date of exercise for options exercised during 2008 is EUR 24.07 (2007: EUR 32.48).
Changes in option rights non-vested
Options non-vested (in numbers) Weighted average grant date fair value (in euros)
2008 2007 2006 2008 2007 2006
Opening balance 38,405,158 38,551,921 41,4 07,132 5.83 4.57 3.65
Granted 14,905,232 12,139,472 13,872,880 5.28 6.52 6.49
Vested –13,173,224 –10 ,112 ,3 4 8 –15,390,327 3.49 6.14 4.65
Forfeited –2,269,434 –2,173,887 –1, 337,76 4 5.64 5.46 3.85
Closing balance 37,867,732 38,405,158 38,551,921 6.03 5.83 4.57
Summary of stock options outstanding and exercisable
2008
Range of exercise price in euros
Options
outstanding
as at 31
December
2008
Weighted
average
remaining
contractual life
Weighted
average
exercise
price
Options
exercisable
as at 31
December
2008
Weighted
average
remaining
contractual life
Weighted
average
exercise
price
0.00 – 15.00 5,772,054 4.19 12.11 5,772,054 4.19 12.11
15.00 – 20.00 9,425,787 4.70 18.69 9,149,037 4.55 18.69
20.00 – 25.00 28,055,499 7.49 22.49 14,212,102 5.83 23.22
25.00 – 30.00 15,390,859 2.74 28.57 14,729,456 2.44 28.71
30.00 – 35.00 23,157,582 7.71 32.46 71,400 2.57 33.06
35.00 – 40.00 5,461,600 2.13 35.51 5,461,600 2 .13 35.51
87,263,381 49,395,649
Notes to the consolidated profit and loss account of ING Group (continued)
ING Group Annual Report 2008
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