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Performance-related share plan


Under the performance-related share plan, a number of conditional shares are granted to the members of the Board of Management and executives each year. The number of participants of the performance – related share plan at year-end 2009 was 579 (2008: 548). The actual number of shares that will vest depends on our Total Shareholder Return (TSR) performance over a three-year period, compared with the TSR performance of a specified peer group. Our TSR performance over the period January 1, 2007, until December 31, 2009, resulted in a second position within the ranking of the peer group companies. The vesting percentage of the 2007 grant amounted to 135 percent (series 2006 – 2008: 70 percent), including dividend shares of 11.69 percent (series 2006 – 2008: 9.09 percent), the final vesting percentage amounted to 150.78 percent (series 2006 – 2008: 76.36 percent).

As from 2009, the conditional grant of shares is linked for 50 percent to the ranking of the company in the Dow Jones Sustainability Indexes and the remaining 50 percent to the relative TSR performance of the company compared with the peer group.

The fair value of the performance-related shares at grant date is amortized as a charge against income over the three-year vesting period. The average fair value was calculated by external specialists and amounted to €26.39 per performance-related share conditionally granted in 2009 (2008: €33.98). The 2009 charge recognized for performance-related shares aggregated €21 million (2008: €16 million).

For further details on our performance-related share plan, see Performance share plan.

Performance-related shares

 

 

 

 

 

 

 

 

Series

Balance at January 1, 2009

Granted in 2009

Vested in 2009

Forfeited in 2009

Dividend in 20091

Balance at December 31, 2009

Vested on January 1, 2010

1

Equivalent in shares related to accumulated dividend, which is included in the balances on balance sheet date.

 

 

 

 

 

 

 

 

2006 – 2008

442,226

(442,226)

2007 – 2009

672,987

226,766

(15,100)

59,001

943,654

943,654

2008 – 2010

526,152

10,422

(8,855)

26,921

554,640

2009 – 2011

1,127,705

(11,813)

56,799

1,172,691

 

 

 

 

 

 

 

 

Total

1,641,365

1,364,893

(442,226)

(35,768)

142,721

2,670,985

943,654

The shares of the series 2006 – 2008 have vested and were delivered to the participants in 2009. The share price of a common AkzoNobel share at December 31, 2009, amounted to €46.40 (2008: €29.44).

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