report

2.23 Treasury shares
The costs of treasury shares of Charles Vögele Holding AG purchased by any Group
company are deducted from the Group’s shareholders’ equity (see “Treasury shares”
under the consolidated statement of changes in Group equity) until the shares are
cancelled, reissued or disposed of. Where such shares are subsequently sold or re-
issued, the difference between the proceeds and the original purchase price is
included in equity with no effect on the income statement.
2.24 Valuation of share option plan
The Group operates an equity-settled, share-based compensation plan (see Note 34).
The fair value of issued options is recognized proportionally over the vesting period
under personnel expenses in the income statement and under shareholders’ equity.
Fair value is assessed using the “Enhanced American Model” (EA Model), which
is in line with generally accepted valuation methods for determining share option
prices and which takes into account all the factors and assumptions that reason-
able contracting market participants would consider when setting prices. When
options are exercised or expire, the fair value originally booked to shareholders’
equity is charged against retained earnings.
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Financial Commentary | Income Statement and Balance Sheet | Cash Flow and Changes in Equity | Notes | Statutory Auditors