TomTom 2010 Annual Report Download - page 82

p 80 / TomTom Annual Report and Accounts 2010
22. SHARE-BASED COMPENSATION (continued)
Share option plan 2009:
Under this plan the group issued 6.0 million stock options in May 2010 (2009: 5.8 million). The 2009 share option plan qualifies as an
‘Equity-settled share based payment plan’. The options will vest in three equal yearly portions, the first third after one year, the second
third after two years and the remaining third after three years from the grant date. These terms result in options under the plan that
cannot be transferred, pledged or charged and may be exercised only by the option holder over a period of seven years from the grant
date but only after completion of the vesting period. Options expire after the exercise period.
The options will be covered at the time of exercise by issuing new shares.
The following table summarises information about the stock options outstanding at 31 December 2010:
Outstanding stock options
Number Exercise Weighted Number Weighted
outstanding at price per average exercisable at average
Year of grant 31 Dec 10 share remaining life 31 Dec 10 exercise price
20051 3,021,965 21.85-23.82 1.78 3,021,965 23.16
20061 1,830,125 21.07-31.14 2.77 1,830,125 27.57
20071 36,300 25.55 3.19 36,300 25.55
20091 6,421,672 5.71-6.00 5.46 2,140,557 5.76
2010 5,878,500 4.81-5.48 6.35 0 5.32
1 The number of outstanding options and the exercise price per share are corrected for the Liffe adjustment which has the effect of preserving the existing rights of the
option holders following the rights issue in 2009.
A summary of the group’s stock option plans and the movements during the years 2010 and 2009 are presented below:
Weighted Weighted
average average
Option plans 2010 exercise price2 2009 exercise price
Outstanding at the beginning of the year 12,159,280 13.81 6,496,967 19.20
Granted 6,013,500 5.32 5,813,000 5.71-6.00
Liffe adjustment 0 0 2,203,087 n/a
Exercised -90,011 5.72 -1,534,787 0.62
Forfeited -894,207 16.00 -818,987 25.47
Outstanding at the end of the year 17,188,562 11.06 12,159,280 13.81
2 See footnote 1 above.
Performance share plan
In 2007 and 2008 the group introduced performance share plans for employees. Conditional awards of TomTom shares were made under
the share-based incentive plans of 2007 and 2008. In 2008 all employees, except for Management Board members, were offered the
choice of 100% vesting or the original vesting criteria. The original vesting criteria can result in a vesting ranging from 0-150% of the
conditional award. The actual vesting percentage depends on the total shareholder return of TomTom NV compared to other companies
listed in the AEX index, and the EPS growth of TomTom NV. For the performance shares granted in 2007 and 2008, the measurement
period is three years starting at 1 January 2007 and 1 January 2008 respectively. On 31 December 2010 the liability with regard to the
performance share plan was €2.4 million (2009: €2.1 million).
The following table provides more information about the performance shares which were conditionally awarded in 2007 and 2008. There
were no awards made in 2010 (2009: nil).
Share plans 2010 2009
Outstanding at the beginning of the year 563,860 482,200
Granted 0 0
Liffe adjustment 0 102,669
Exercised -161,872 0
Forfeited -38,988 -21,009
Outstanding at the end of the year 363,000 563,860
Notes to the Consolidated Financial Statements