annual Report 2009 - STRATEC Biomedical AG

Report of the board of Management
Report of the supervisory board
THE share
Corporate Governance
Group Management report
Consolidated financial statements
Service
Upon preparation of the separate financial statements of STRATEC AG in line with the German Commercial Code (HGB),
the Board of Management and Supervisory Board allocated an amount of u 3,000 thousand from the net earnings for
2009 to the free revenue reserves as of December 31, 2009.
Stock option programs
STRATEC AG introduced its first stock option programs for managers and employees in the 2000 financial year already.
The company had four stock option programs as of December 31, 2009. These stock option programs are especially
well-suited to provide a sustainable performance incentive for members of the Board of Management and employees of
the company, as well as for members of the management and employees of associates, and thus to help increase the
value of the company in the interests of the company and its shareholders. For members of the Board of Management
of STRATEC AG, the stock options allocated to them simultaneously serve as variable components of compensation of
a long-term incentive nature.
The following specific conditions apply to all stock option programs:
Each stock option entitles its bearer to subscribe one STRATEC share at a later date in return for payment of an exercise
price determined upon the options being granted. Stock options granted prior to the capital increase from company
funds executed on July 14, 2006 entitle their bearers to subscribe 2.9942188 STRATEC shares due to the share split
resulting from this capital increase. The exercise price is equivalent to the average closing price of the STRATEC shares
on the five trading days prior to the decision being taken to grant stock options, with the par value of one euro per share
representing the minimum possible exercise price. Following the expiry of qualifying periods and the meeting of specified
performance targets, the stock options may only be exercised in predetermined exercise windows. Up to 50 % of
the stock options granted may only be exercised at the earliest following a qualifying period of two years and provided
that STRATEC’s share has risen in value by at least 10 % compared with the exercise price between the date of the option
rights being granted and the date marking the expiry of the qualifying period. Following a qualifying period of a further
year, up to 100 percent of the stock options granted may be exercised provided that STRATEC’s share has risen in value
by at least 15 % between the date of the option rights being granted and the date marking the expiry of the qualifying
period. Following a seven-year term the option rights lapse without compensation.
The individual stock option programs, fair value calculation using the Black / Scholes option pricing model, and calculation
of the related personnel expenses in the individual periods (taking due account of personnel turnover) have been
based on the following key parameters (with expected volatility derived from historic volatility figures):
(1) (2) (3) (4) (5) (6)
Granted in 2004 2005 2006
Subscription price per share* in u 9.84 26.08 39.53 15.36 20.27 20.74
Subscription price per share following capital increase
from company funds (bonus shares)* in 3.28 8.71 13.20 15.36 20.27 20.74
Expected share price volatility in % 50.0 50.0 50.0 50.0 50.0 50.0
Expected dividend yield in % 1.00 1.00 0.66 0.65 0.50 0.50
Risk-free interest rate in % 3.15 2.30 2.60 3.70 3.70 3.70
Assumed turnover of personnel
entitled to subscribe in % 3.50 3.50 3.50 3.50 3.50 3.50
Allocable personnel expenses in u thousand 149 60 28 86 13 7
* Following the capital increase from company funds on July 14, 2006 (1:2.9942188) 2.9942188 ordinary shares with a nominal value of u 1.00 each are granted for the
subscription prices for Plans (1) to (3) depicted above, to the extent that these had not been exercised by July 14, 2006.
stratec Annual Report 2009
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