+1 - Solvay

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Solvay Global Annual Report 2007
is measured against a set of predetermined
region/business-sector/
function goals as well as other
executive-specific critical objectives
approved by the Board of Directors.
Long-term incentives
The long-term incentive is delivered
through periodic grants of stock
options.
Each year, the Board of Directors,
upon the recommendation of the
Compensation and Appointments
Committee, sets the number of
stock options that are granted
respectively to the Chairman of the
Executive Committee, the members
of the Executive Committee and the
other members of the “Office of the
Executive Committee”. In determining
the actual number of options to be
granted to each group of General
Managers, the Board is guided by
prevailing long-term incentive levels
and practices in the reference market.
The options' strike price is equal
to the average closing price of the
Solvay share on Euronext Brussels
during the 30 days preceding the
start of the offer. The options expire
eight years after the date of grant.
They vest as from the first day of the
year following the third anniversary
of the grant and can be exercised
during specified “open periods”.
Other benefits
The General Managers are entitled
to retirement, death and disability
benefits, as a rule, on the basis of the
provisions of the plans applicable in
their home country.
Other benefits, such as medical care
and company cars or car allowances,
are also provided according to the
rules applicable in the host country.
The nature and magnitude of these
other benefits are largely in line with
the median market practice. The
retained reference market is, as a
rule, a blend of some 20 leading
Belgian companies and Belgian
subsidiaries of foreign-owned
organisations generally considered
as attractive employers by national
and international executive talent
and for which the representative
benefit practices can be regarded
as sufficiently in line with prevailing
European standards at executive
level.