Panalpina Annual Report 2006

Consolidated and Annual Financial Statements 2006
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102 Panalpina Annual Report 2006
The following weighted parameters have been chosen as the actual basis:
The overall expected return of plan assets is based on country-specific long-term market expectations at the beginning of
the period.
A 5-years summary of the Group’s defined benefit plans is shown in the table below:
Share options
2006 2005
Discount rate 3.45% 3.45%
Expected return on pension plan assets 3.08% 3.30%
Salary increase 1.50% 1.70%
Rate in pension increase 0.50% 0.40%
in thousand CHF 2006 2005 2004 2003 2002
DBO 263,151 242,137 242,836 222,789 206,247
Plan assets (266,449) (261,744) (237,033) (226,302) (205,822)
(Deficit) surplus (3,298) (19,607) 5,803 (3,513) 425
Experienced gains (losses) on plan liability (14,210) 9,832 (10,692) (2,756) 9,178
Experienced gains (losses) on plan assets (514) 11,993 874 10,360 (39,724)
Share and option ownership programs are offered to members of the Board of Directors, members of the Executive Board
and selected preferential employees. The Group operates the following programs:
Management Incentive Program I (MIP I)
Participants of the program were offered a certain amount of registered shares at the offering price of CHF 80.00 each with
a lock-up period of one year. For every purchased share, the subscribers of the program had been allocated two options,
each option entitling them to purchase one further share at the offering price. The options can not be settled in cash. The
options are exercisable unconditionally starting one year from the grant date. The options have a remaining contractual
option term of two years.
Management Incentive Program II (MIP II)
Participants had the right to purchase shares with a discount of 25% based on the share price corresponding to the average
closing price of one share at the SWX Swiss Exchange during the months January to May in the respective year of purchase.
The difference between the discounted share price at grant date and the share price paid by the participants is recognized
as personnel expenses at the date of the issue of the shares. The shares are subject to a 1-year lock-up period. During the
reporting period, participants of the program subscribed 54,520 of those shares.
For every purchased share under this plan, the Group grants one option free of charge to the participants. The options have
a contractual term of six years and a vesting period of one to three years. Each option entitles the participant to obtain
one share of Panalpina World Transport (Holding) Ltd at a predetermined strike price which equals the average closing price
of one share at the SWX Swiss Exchange during the months January to May in 2006. The share options cannot be settled
in cash.