Stock options were conditionally granted for the last time in 2007 and vested for the last time in 2010. The actual number of options which the Board of Management received depended 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 was 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 was used to encourage EVA performance over a longer period of time.
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 became 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 in 2007). Mr. Gunning did not receive stock options as he became an employee of the company after January 1, 2008.