Pallet-Management-Services - AFM

| ANNUAL REPORT 2006 | IFCO SYSTEMS N.V. |
12. Employee benefi t plans
Stock option plan
In March 2000, the Company’s Board of Directors (the Board)
approved the 2000 Stock Option Plan, (the Stock Option Plan).
The Stock Option Plan provides for the granting of stock options
to directors, executive officers, and other employees of the
Company and terminates in March 2010. In general, the terms of
the option awards are established by the Board.
During 2003, the Board granted options to purchase an
aggregate of approximately 1.5 million ordinary shares of the
Company to certain managers and members of the Board. The
exercise price for each of these options was equal to the value
of the Company’s ordinary shares on the date of issuance. The
options expire between 3 and 5 years from the date of their
vesting.
During 2004, the Board granted options to purchase an
aggregate of approximately 0.8 million ordinary shares of the
Company to certain managers. The exercise price for each of
these options was equal to the value of the Company’s ordinary
shares on the date of issuance. The options expire 5 years
from the date of their vesting, which is contingent upon certain
defined operational targets being met during each of 2004,
2005 and 2006.
During 2006, the Board of Managing Directors granted options
to purchase an aggregate of approximately 0.1 million ordinary
shares of the Company to certain managers. The exercise
price for each of these options was equal to the value of the
Company’s ordinary shares on the date of issuance. The options
expire 5 years from the date of their vesting, which is contingent
upon certain defined operational targets being met during each
of 2007, 2008 and 2009.
During 2006 and 2005, the Company recorded total stock
based compensation expense of US $0.7 million and
US $1.5 million, respectively. The portion of that expense
arising from equity-settled share-based payment transactions is
US $0.2 million (2005: US $0.4 million).
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