Hydro Annual Report 2011b

F32
FINANCIAL STATEMENTS
Note 11 - Employee and management remuneration
During 2011 no options were exercised and 4,060 options expired. As of December 31, 2011 the trust's balance of Hydro
shares was 423,813 and 271,687 Statoil shares. There were 11,893 options outstanding as of December 31, 2011, with an
average strike price equivalent to NOK 58.89 per share.
Employee share purchase plan
Hydro has established a share purchase plan for employees in Norway. The plan payout is based on share price performance,
and whether the share price (adjusted for dividend paid) increases with at least 12 percent or not during the performance
period. Under the plan offered in 2011, eligible Hydro employees received a NOK 2,500 share-purchase rebate to purchase
NOK 10,000 of shares of Norsk Hydro ASA, which corresponds to a 25 percent discount from the market price, as
shareholder return did not exceed 12 percent in the period from January 1 to December 31, 2010 (the performance
measurement period).
In the performance period January 1 to December 31, 2011 shareholder return did not exceed 12 percent. Therefore, under
the plan to be offered in 2012, employees will receive a rebate of NOK 2,500 on their purchase of NOK 10,000 of Norsk
Hydro ASA shares. The rebate of NOK 2,500 corresponds to a 25 percent discount from the market price.
Employees are eligible to receive an offer to purchase shares under this plan if they were 1) employed by Norsk Hydro ASA or a
more than 90 percent owned Norwegian subsidiary, and 2) employed as of December 31 through the final acceptance date of
the share purchase offer.
Compensation expense related to the 2010 performance measurement period was accrued and recognized over the service
period of December 31, 2010 through April 1, 2011, the final acceptance date of the offer. In 2011 and 2010 the participation
rates of eligible employees in the employee share purchase plan were 82 and 88 percent, respectively. Details related to the
employee share purchase plan are given in the table below.
Employee share purchase plan
Performance measurement period 2011 2010 2009
Total shareholder return performance target achieved