Annual Report 2009 - Von Roll

Financial Reporting 2009 – Consolidated Financial Statements 77In the reporting period, corresponding personnel expenses were recognised to the amount of TCHF 350 (2008:TCHF 194). Social security contributions related to options are chargeable only as of the exercise date. Taxes are tobe borne by the option holder.No options were exercised in the reporting period, neither have any lapsed.Stock option plan for senior and middle managementIn 2008, a stock option plan was introduced for senior and middle management. Non-transferable stock options maybe issued to these managers each year; however, there is no obligation to grant any options. The options may beexercised at any time for a period of five years for a price determined at the grant date if, at the time of exercise,the manager is still employed by the company.The corresponding personnel expenses recognised in 2009 amount to TCHF 785 (2008: TCHF 341). These expensesare accordingly offset in equity. Social security contributions related to options are chargeable only as of the exercisedate. Taxes are to be borne by the option holder.a) 2008 TrancheThe first 33⅓ % of the options granted may be exercised from 1 February 2009. An additional 33⅓ % may be exercisedon the same date in both 2010 and 2011. The options can only be settled in shares (equity settlement). The potentialcommitment to provide shares for options will be covered solely by the purchase of shares on the stock exchange.In 2008, 475,000 options to acquire 475,000 shares were granted to members of senior and middle management.The exercise price was fixed at CHF 10. The options issued under this tranche may be exercised from the date ofgrant until 31 January 2013.The options granted are valued on the basis of the Black-Scholes option pricing model and have an average fairvalue of CHF 2.62. The volatility rate of 52 % is based on historically observed stock prices. The risk-free interest rateof 2.82 % is based on Swiss government bonds with similar maturities. An underlying dividend yield of 1.17 % andfluctuation of 10 % per year are expected.No options were exercised in the reporting period. As of 31 December 2009, 141,000 options of the tranche issuedin 2008 had lapsed.b) 2009 TrancheThe first 33⅓ % of the options granted may be exercised from 1 February 2010. An additional 33⅓ % may be exercisedon the same date in both 2011 and 2012. The options can only be settled in shares (equity settlement). The potentialcommitment to provide shares for options will be covered solely by the purchase of shares on the stock exchange.In 2009, 596,000 options to acquire 596,000 shares were granted to members of senior and middle management.The exercise price was fixed at CHF 11. The options issued under this tranche may be exercised from the date ofgrant until 31 January 2014.The options granted are valued on the basis of the Black-Scholes option pricing model and have an average fairvalue of CHF 1.25. The volatility rate of 43 % is based on historically observed stock prices. The risk-free interest rateof 2.32 % is based on Swiss government bonds with similar maturities. An underlying dividend yield of 1.56 % andfluctuation of 10 % per year are expected.No options were exercised in the reporting period. As of 31 December 2009, 100,200 options of the tranche issuedin 2009 had lapsed.