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Stock option plan


Stock options were conditionally granted for the last time in 2007. The actual number of options which the Board of Management receives depends on the company’s performance during a three-year vesting period. The total option term is seven years.The performance measure used to determine the number of options that vest is the average of the results of the comparison between planned and realized EVA on Invested Capital (EOI), or economic value created in relation to invested capital during the period of three consecutive years. This measure is used to encourage EVA performance over a longer period of time.

Stock options will not vest below 80 percent of the targeted EOI. The number of options conditionally granted is also the maximum number of options that vest upon achieving the targeted performance. If targeted performance is exceeded, there will be no increase in the number of options that vest. The specific targets have not been disclosed as they qualify as commercially sensitive information.

The exercise price of the stock options is the NYSE Euronext Amsterdam opening price on the first day after the Annual General Meeting of shareholders that the AkzoNobel share is quoted ex-dividend in the year in which the options were conditionally granted.

Based on the EOI performance over the period 2007 to 2009, 100 percent of the stock options (conditionally) granted to the members of the Board of Management in 2007 will become unconditional: (19,800 to the CEO and 13,000 to the other Board members, except for Mr. Nichols, who was appointed to the Board of Management on May 1, 2008, and received 3,750 stock options in respect of the conditional grant to executives in 2007). Mr. Gunning did not receive stock options as he became an employee of the company after January 1, 2008.

Overview performance-related stock options Board of Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006 – 2013

 

 

2007 – 2014

Number of shares

Conditional stock option grant

Fair value at grant

 

Number of vested stock options

Intrinsic value at vesting1

 

Conditional stock option grant

Fair value at grant

1

Share price at moment of vesting minus exercise price.

 

 

 

 

 

 

 

 

 

Hans Wijers

19,800

195,200

 

19,800

nil

 

19,800

235,224

Leif Darner

13,000

128,200

 

13,000

nil

 

13,000

154,440

Rob Frohn

13,000

128,200

 

13,000

nil

 

13,000

154,440

Keith Nichols

3,000

29,600

 

3,000

nil

 

3,750

44,550

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