annual report - FIAT SpA

The following table reflects performance-based share activity under the CNH EIP:
Number of
shares
Weighted
average grant
date fair value
(in USD)
2010 2009
Number of
shares
Weighted
average grant
date fair value
(in USD)
Non-vested at the beginning of the year 1,349,000 31.22 1,870,500 31.28
Granted 2,027,000 34.74 25,000 11.83
Forfeited (1,359,000) 31.25 (546,500) 30.52
Vested - - - -
Non-vested at the end of the year 2,017,000 34.74 1,349,000 31.22
Restricted Share Grants
In September 2010, CNH granted 302,000 restricted share awards to selected key employees under the CNH EIP.
Restricted shares vest in three equal instalments over a three-year period ending 30 September 2013. The fair value
of this award is US$34.74
The following table reflects restricted share activity under the CNH EIP:
Number of
2010
Weighted
average grant
date fair value
shares (in USD)
Non-vested at the beginning of the year - -
Granted 326,000 34.56
Forfeited (2,000) 34.74
Vested (8,000) 32.35
Non-vested at the end of the year 316,000 34.62
As of 31 December 2010, there were 4,992,271 CNH Global N.V. common shares (8,332,115 CNH Global N.V.
common shares at 31 December 2009) available for issue under the CNH EIP.
The Black-Scholes pricing model was used to calculate the fair value of stock options by the CNH – Case New
Holland sector. The weighted-average assumptions used under the Black-Scholes pricing model were as follows:
2010 2009
Equity
Equity
Directors’ plan incentive plan Directors’ plan incentive plan
Option life (years) 5.00 3.73 5.00 3.73
Price volatility of CNH Global N.V. shares (%) 66.9 74.1 62.9 70.6
Expected dividend yield (%) 0.6 0.5 0.8 0.7
Risk-free interest rate (%) 2.0 1.9 2.2 1.6
Based on this model, the weighted-average fair values of stock options awarded by CNH for the years ended
31 December 2010 and 2009 were as follows:
(in USD) 2010 2009
Directors’ Plan 14.60 8.03
Equity incentive plan 16.10 9.03
The total cost recognised in the 2010 income statement for all share-based compensation linked to CNH Global N.V.
ordinary shares amounts to €26 million (€10 million in 2009).
Stock option plan linked to Ferrari S.p.A. ordinary shares
Under this scheme, certain employees of Ferrari S.p.A. on the one hand and the Chairman and the Chief Executive
Officer of the company at the time on the other had the option to acquire respectively 207,200 and 184,000 Ferrari
S.p.A. ordinary shares at a price of €175 per share. Under the scheme the options could be exercised until
31 December 2010, wholly or partially, and in part were subject to the listing of the company. As the conditions for the
plans to vest were not met, the stock option rights granted did not vest.
Fiat Group Consolidated Financial Statements at 31 December 2010 180