ANNUAL REPORT 2004 - ELMOS Semiconductor AG

MANAGEMENT BOARD ELMOS – THE COMPANY THE ELMOS SHARE CORPORATE GOVERNANCE
92
Differences between the statutory tax rate and the company’s effective income tax
are as follows:
8. SHARE CAPITAL
The company’s share capital consists of 19,300,000 shares as of December 31, 2004
and December 31, 2003 (common shares exclusively).
9. SHARE OPTION PROGRAM
The company has a share option program for Management Board members, other
executives, and employees. The objective of this plan is the safeguarding of the
company’s success by providing employees the opportunity to acquire shares. Under
this program the company is authorized to grant up to 1,000,000 new unit shares, of
which 116,525 shares were granted in a first tranche in the fiscal year 1999.
The exercise price is equivalent to 120 percent of the average closing price of the
company’s share on the ten business days prior to the Management Board resolution
on issue and particulars of the respective tranche. The options can only be exercised
if the share’s closing price equals or exceeds the exercise price. The options vest after
three or rather two years of continued employment (third and fourth tranche) and
expire six or rather five years (third and fourth tranche) subsequent to the date of
grant.
2004
Percent
2003
Percent
German statutory tax rate 39,90 41,40
Non-deductible amortization of participations 0,00 0,60
Expenses disallowable against tax 0,40 0,40
Dividends on interest in corporations – 3,90 – 0,50
Foreign tax rate differential – 1,60 – 1,61
Others 0,00 0,50
Effective tax rate 34,80 40,79