Mercedes 2010 Annual Report Download - page 211

Consolidated Financial Statements | Notes to the Consolidated Financial Statements | 207
21. Share-based payment
As of December 31, 2010, the Group has the 2007-2010 Perfor-
mance Phantom Share Plans (PPSP) and the Stock Option Plans
2001-2004 outstanding. The unexercised rights from Stock Option
Plan 2000 expired on April 21, 2010. The exercisable stock options
of 2003 and 2004 are equity-settled share-based payment
instruments and are measured at fair value at the date of grant.
The PPSP are cash-settled share-based payment instruments
and are measured at their respective fair values at the balance
sheet date.
The PPSP are paid off at the end of the stipulated holding period;
earlier, pro-rated payoff is possible only if certain defined
conditions are met. PPSP 2006 was paid off as planned in the
first quarter of 2010.
The effects of share-based payment arrangements on the con-
solidated statement of income/loss and statement of financial
position were as follows (before income taxes):
Remuneration
expense
Provision
at December 31,
2010 2009 2010 2009
In millions of euros
PPSP -69 -31 124 72
SOP -4 -1 ––
-73 -32 124 72
Expenses in the consolidated statement of income/loss result-
ing from rights of current members of the Board of Management
are as follows:
Dr. Dieter Zetsche Dr. Wolfgang Bernhard Wilfried Porth
2010 2009 2010 2009 2010 2009
In millions of euros
PPSP -3.5 -1.7 -0.6 –-0.9 -0.3
SOP -2.0 -0.1 ––––
Andreas Renschler Bodo Uebber Dr. Thomas Weber
2010 2009 2010 2009 2010 2009
In millions of euros
PPSP -1.6 -0.7 -1.7 -0.8 -1.5 -0.7
SOP ––-0.9 -0.1 -0.8 -0.1
The details shown in the overview do not represent any paid or
committed remuneration, but refer to expense which has been
calculated according to IFRS. Details regarding remuneration of
the members of the Board of Management in 2010 can be found
in the Remuneration Report (see page 152).
Performance Phantom Share Plans. In 2010, the Group adopted
a Performance Phantom Share Plan (PPSP), similar to that used
from 2005 to 2009, under which eligible employees are granted
phantom shares entitling them to receive cash payments after
four years. The amount of cash paid to eligible employees is based
on the number of vested phantom shares (determined over
a three-year performance period) multiplied by the quoted price
of Daimler’s ordinary shares (calculated as an average price
over a specified period at the end of the four years of service).
For the plans granted in 2009 and 2010, the quoted price
of Daimler’s ordinary shares to be used for the payout is limited
to 2.5 times the Daimler share price at the date of grant.
The number of phantom shares that vest will depend on the
achievement of corporate performance goals based on competi-
tive and internal benchmarks (return on net assets and return
on sales).
The Group recognizes a provision for awarding the PPSP. Since
payment per vested phantom share depends on the quoted
price of one Daimler ordinary share, the quoted price almost
completely represents the fair value of each phantom share.
The proportionate remuneration expenses for the individual years
are determined on the basis of the year-end quoted price of
Daimler ordinary shares and the estimated target achievement.