+1 - Solvay

Financial
The 3-year vesting period is followed by a 5-year exercise period, at the end of which any unexercised options expire.
Share options 2002 2003 2004 2005 2006 2007
Number of share options at 31/12/2006 218 800 465 300 446 900 512 100 499 100 0
Granted share options 508 800
Forfeitures of rights and expiries
Share options exercised -31 800 -198 100 0
Number of share options at 31/12/2007 187 000 267 200 446 900 512 100 499 100 508 800
Share options exercisable at 31/12/2007 187 000 267 200 0 0 0 0
Exercise price (EUR) 63.76 65.83 82.88 97.30 109.09 96.79
Fair value of options
at measurement date (EUR)
9.60 9.50 7.25 10.12 21.20 18.68
Number
of share
options
2006 2007
Weighted
average
exercise
price
Number
of share
options
Weighted
average
exercise
price
At 1/1 1 931 500 77.68 2 142 200 86.78
Granted during the year 499 100 109.09 508 800 96.79
Forfeitures of rights and expiries during the year -11 600 81.97 0 -
Exercised during the year -276 800 63.76 -229 900 65.54
At 31/12 2 142 200 86.78 2 421 100 90.90
Exercisable at 31/12 218 800 454 200
85
The share options resulted in a charge in 2007 of EUR 6 million calculated by a third party according to
the Black & Scholes model and recorded in the income statement under commercial and administrative costs.
The model places a value on European type options, i.e. exerciseable at option maturity.
The value of the option is based on:
– the price of the underlying asset (Solvay share): EUR 95.70 at 31 December 2007,
– the time outstanding until the option maturity: - exercisable from 15 February 2011,
– the option exercise price: EUR 96.79,
– lthe risk-free return: 4.61 %,
– the volatility of the underlying yield: 25 %.
Solvay Global Annual Report 2007