palfinger at a glance

noteS TO THE CONSolidated FINANCIAL StatementS
conSolidated FINANCIAL StatementS FOR THE Year ENDED 31 DECEMBER 2011
> search Print
The Annual General Meeting on 31 March 2010 resolved to grant 50,000 stock options to Christoph Kaml,
member of the Management Board.
The following applies to the 2010 stock option programme: Each stock option may be exercised in exchange for
one share at an exercise price of EUR 16.57. The stock options may be exercised (one half each) at two exercise
dates. In order to be able to exercise stock options, the average ratio of earnings before taxes (EBT) and revenue
as reported in the consolidated financial statements of PALFINGER AG must have been at least 4 per cent (exercise
date 1 in 2013) or 5 per cent (exercise date 2 in 2015) for each of the three balance sheet dates preceding
the date the option is exercised.
The maximum number of shares available for subscription is equivalent to the number of options issued. If the
EBT ratio is less than 4 or 5 per cent, no options may be exercised and there is no entitlement to subscription. If
the EBT ratio is 4 or 5 per cent, the entitled person enjoys the right to exercise 25 per cent of his stock options at
the relevant exercise date. If the EBT ratio exceeds 4 or 5 per cent, the number of stock options that may be exercised
by a person at the relevant exercise date rises in linear progression up to an EBT ratio of 9 or 11 per cent.
The fair value of the options granted is recognized as employee benefits expense and offset against additional
paid-in capital in equity. The fair value is determined at the date the option is granted and expensed over a period
during which the employees acquire the unconditional entitlement to the options granted (vesting period).
A Monte Carlo simulation is used to determine the fair value of options, taking into account the terms and conditions
on which the options were granted. The amount, which is to be reported as an expense, is adjusted to take
into account the effect of anticipated staff turnover in order to reflect the expected actual number of options that
may be exercised in the future.
Herbert
Ortner
Christoph
Kaml
Wolfgang
Pilz
Martin
Zehnder
Alexander
Exner
Alexander
Doujak
Number of stock options 40,000 40,000 25,000 25,000 25,000 25,000 25,000 25,000 10,000 0 15,000 15,000
Exercise price in EUR 10.12 10.12 16.57 16.57 10.12 10.12 10.12 10.12 10.12 10.12 10.12 10.12
Exercise period
within 12 weeks
after the AGM 2012 2014 2013 2015 2012 2014 2012 2014 2012 2014 2012 2014
Fair value of option in EUR
at valuation date * 2.58 2.56 4.73 5.77 2.58 2.56 2.58 2.56 2.58 2.56 2.58 2.56
Underlying volatility 50.0% 40.0% 45.0% 45.0% 50.0% 40.0% 50.0% 40.0% 50.0% 40.0% 50.0% 40.0%
Valuation date 25 Mar 2009 31 Mar 2010 25 Mar 2009 25 Mar 2009 25 Mar 2009 25 Mar 2009
Price in EUR
at valuation date 9.29 16.81 9.29 9.29 9.29 9.29
* Valuation model used: Monte Carlo simulation.
Changes in stock options were as follows:
Number of stock options 2011 2010
As at 1 Jan 300,000 250,000
Options granted 0 50,000
Options lapsed 30,000 0
As at 31 Dec 270,000 300,000
Alexander Exner resigned from the Supervisory Board with effect from 30 March 2011. 30,000 of the
stock options granted to him lapsed in connection with his resignation.
128
palfinger Annual Report 2011