Mercedes 2010 Annual Report Download - page 212

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Stock Option Plans. In April 2000, the Group’s shareholders
approved the Daimler Stock Option Plan (SOP), which grants stock
options for the purchase of Daimler ordinary shares to eligible
employees. Options granted under the SOP are exercisable at
a reference price per Daimler ordinary share, which is determined
in advance, plus a 20% premium. The options become exercis-
able in equal installments at the earliest on the second and third
anniversaries of the date of grant. All unexercised options expire
ten years after the date of grant. If the market price per Daimler
ordinary share on the date of exercise is at least 20% higher
than the reference price, the holder is entitled to receive a cash
payment equal to the original exercise premium of 20%. No new
stock options were granted after 2004.
In the event of exercise, the Group has generally issued ordinary
shares so far.
The table below shows the basic terms of the SOP (in millions):
Reference
price
Exercise
price
Options
granted
Options
outstanding
Options
exercisable
At December 31, 2010
Year of grant
2001 €55.80 €66.96 18.7 4.6 4.6
2002 €42.93 €51.52 20.0 1.8 1.8
2003 €28.67 €34.40 20.5 1.9 1.9
2004 €36.31 €43.57 18.0 2.8 2.8
Options granted to the Board of Management in 2004 for which
– according to the recommendations of the German Corporate
Governance Code – the Presidential Committee can impose a limit,
or reserve the right to impose a limit in the event of exceptional
and unpredictable developments, are measured at their intrinsic
values as of December 31.
Analysis of the stock options issued is as follows:
Number of
stock options
in millions
2010
Average
exercise price
euros per share
Number of
stock options
in millions
2009
Average
exercise price
euros per share
Balance at beginning of the year 22.4 56.57 24.3 56.61
Options granted – – – –
Exercised -4.5 45.04 -0.2 34.40
Disposals/Forfeited -6.8 70.07 -1.7 60.15
Outstanding at year-end 11.1 52.90 22.4 56.57
Exercisable at year-end 11.1 52.90 22.4 56.57