Annual Report 2010 - SBM Offshore

Report of Board of Management
With respect to the options granted in 2005, both
Managing Directors exercised their options upon expiry
at the prevailing share price of €12.88 and received no
net proceeds from such exercise.
With respect to the conditional awards made in 2007
(under the LTI 2005), the three year performance period
ended upon completion of the financial year 2009.
Based upon the audited financial statements, the
three-year period 2007-2009 generated an average
annualised EPS growth below the threshold of 5%. The
conditional performance share awards and conditional
option grants made in 2007 therefore did not vest in
March 2010. With regard to the conditional grants
made in 2008, the target threshold was not reached
and therefore none of the conditional performance
share awards made in 2008 will vest in March 2011.
Costs incurred by the Company in
2010 in respect of the Remuneration
of Managing Directors
In thousands of €
Base salary Short-Term
Incentive (4)
Expense recognised
for
share-based
payments (NOT
ONLY LTI) (5)
Benefits excluding
pension
payments
Pension
payments
Total costs
A.J. Mace 490 357 146 105 66 1,164
M.A.S. Miles 396 288 104 101 38 927
(4) This is the total amount of the Short-Term Incentive, i.e. the
part payable in cash (80%) and the part payable in shares
(20%).
(5) The fair value of all share-based payments, i.e. the expense
recognised in 2010 as a pro rata over the entire vesting
period. Reference is made to note 3 to the financial statements
(prepared in US Dollars, being the Company’s
reporting currency).
42 SBM Offshore – Annual Report 2010