Philips 2012 Annual Report Download - page 104

10 Supervisory Board report 10.2.7 - 10.2.7
104 Annual Report 2012
The stock option plan vests three years after grant,
dependent upon employment on the vesting date. The
exercise price is the share price upon grant, and the total
option term is 10 years.
A restricted share right is a right to receive a share,
subject to being employed with Philips on the vesting date.
Vesting occurs in three equal tranches 1, 2 and 3 years
respectively after grant. An additional 20% of the
restricted share rights grant is deferred, subject to the
condition that released shares are held for three years
after vesting, and employment with Philips is continued
during this period.
The actual number of stock options and restricted share
rights to be granted to the board members is
performance-related and depends on the ranking of
Philips in the Total Shareholder Return (TSR) peer group
and the realization of the team targets of the Board of
Management. The peer group comprises the following
companies: Electrolux, Emerson Electric, General
Electric, Hitachi, Honeywell International, Johnson &
Johnson, Panasonic, Philips, Schneider, Siemens, Toshiba
and 3M.
The TSR ranking is the basis for the two different
multipliers that apply to the grant of stock options and
restricted share rights. The multipliers are determined in
line with the table below.
TSR multiplier
Philips’ position ranking 1 2 3 4 5 6
restricted share rights 2.0 1.8 1.6 1.4 1.2 1.0
stock options 1.2 1.2 1.2 1.2 1.0 1.0
TSR multiplier
Philips’ position ranking 7 8 9 10 11 12
restricted share rights 1.0 0.8 0.6 0.4 0.2 0.0
stock options 1.0 1.0 0.8 0.8 0.8 0.8
Based on Philips’ share performance over the period
December 2008- December 2011, Philips ranked 8th in its
peer group.
In 2012, members of the Board of Management were
granted 177,000 stock options and 47,205 restricted
share rights under the LTIP (excluding 20% premium
shares deferred for a three-year holding period).
The following tables provide an overview of granted but
not yet vested (locked up) stock option grants and an
overview of restricted share rights granted but not yet
released. The reference date for board membership is
December 31, 2012.
Stock options
in euros
grant date
number of
stock options
value at
grant date
end of
lock up period
value at end
of lock up period
F.A. van Houten 2010 20,4001) 103,428 2013 n.a.
2011 75,000 366,000 2014 n.a.
2012 75,000 212,550 2015 n.a.
R.H. Wirahadiraksa 2009 12,0001) 33,240 2012 34,399
2010 16,5001) 81,675 2013 n.a.
2011 51,000 248,880 2014 n.a.
2012 51,000 144,534 2015 n.a.
P.A.J. Nota 2010 40,8001) 206,856 2013 n.a.
2011 51,000 248,880 2014 n.a.
2012 51,000 144,534 2015 n.a.
1) Awarded before date of appointment as a member of the Board of Management