ING Direct 2009 Annual Report Download - page 186

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 own shares were issued in relation
to the vesting of share plans.
ING Groep N.V. has bought 7,260,000 (depositary receipts for) ordinary shares for its delta hedge portfolio, which is used to hedge
employee options. The shares were bought on the open market between 19 March and 23 March 2009 at an average price of EUR 4.24
per share.
ING Groep N.V. has sold 5,230,000 (depositary receipts for) ordinary shares for its delta hedge portfolio, which is used to hedge employee
options. The shares were sold on the open market between 2 June and 5 June 2009 at an average price of EUR 7.80 per share.
ING Groep N.V. has sold 1,450,000 (depositary receipts for) ordinary shares for its delta hedge portfolio, which is used to hedge employee
options. The shares were sold on the open market on 1 September and 2 September 2009 at an average price of EUR 10.53 per share.
In connection with the rights issue, ING has sold 34.3 million rights it received on (depositary receipts for) shares held in the delta hedge
portfolio, which is used to hedge employee options. The rights were sold through private placements at an average price of EUR 1.85 per
right. ING used the proceeds to partially fund the purchase of 10.4 million (depositary receipts for) shares at a price of EUR 6.55 per share.
These transactions were executed in order to maintain ING’s economic position in the delta hedge book.
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 2009, no shares (2008: 211,049; 2007: 139,113) have been granted
to the members of the Executive Board of ING Group, Management Boards of ING Bank and ING Insurance and 6,273,467 shares (2008:
3,380,706; 2007: 2,415,649) 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(1)
Options outstanding (in numbers) Weighted average exercise price (in euros)
2009 2008 2007 2009 2008 2007
Opening balance 87,263,381 76,888,553 74,175,909 25.93 26.66 25.99
Granted 14,803,109 14,905,232 12,139,472 3.93 21.85 32.13
Exercised –22,757 –1,225,856 –7,163,332 5.33 18.09 19.73
Forfeited –5,974,275 –3,304,548 –2,263,496 26.30 28.87 27.68
Rights issue 28,395,811
Expired –2,130,783 32.11
Closing balance 122,334,486 87, 263,381 76,888,553 17.31 25.93 26.66
(1) 2008 and 2007 reflect original numbers and amounts, not restated for the rights issue adjustment factor.
As per 31 December 2009 total options outstanding consists of 103,523,988 options (2008: 73,826,891) relating to equity-settled
share-based payment arrangements and 18,810,498 options (2008: 13,436,490) relating to cash-settled share-based payment
arrangements.
The weighted average share price at the date of exercise for options exercised during 2009 is EUR 8.57 (2008: EUR 24.07).
Changes in option rights non-vested (1)
Options non-vested (in numbers) Weighted average grant date fair value (in euros)
2009 2008 2007 2009 2008 2007
Opening balance 37,867,732 38,405,158 38,551,921 6.03 5.83 4.57
Granted 14,803,109 14,905,232 12,139,472 2.52 5.28 6.52
Vested –11,10 0,675 –13,173,224 –10,112, 3 48 6.48 3.49 6.14
Forfeited –2,931,533 –2,269,434 –2,173,887 5.67 5.64 5.46
Rights issue 11,678,032
Closing balance 50,316,665 37,867,732 38,405,158 3.52 6.03 5.83
(1) 2008 and 2007 reflect original numbers and amounts, not restated for the rights issue adjustment factor.
2.1 Consolidated annual accounts
ING Group Annual Report 2009
184
Notes to the consolidated profit and loss account of ING Group (continued)