Siemens 2007 Annual Report Download - page 305

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Notes to Consolidated Financial Statements 305
(in millions of €, except where otherwise stated and per share amounts) 
Notes to Consolidated Financial Statements
In fi scal 2007, the Company granted 1,232,893 stock awards to 5,162 employees
and members of the Managing Board, of which 37,302 awards were granted to the
Managing Board. In fi scal 2006, the Company granted 1,076,860 stock awards to
5,198 employees and members of the Managing Board, of which 25,221 awards
were granted to the Managing Board. Details on stock award activity and weighted
average grant-date fair value are summarized in the table below:
Fair value was determined as the market price of Siemens shares less the pres-
ent value of dividends expected during the 4 year vesting period which resulted in
a fair value of €67.70 and €57.28, respectively, per stock award granted in fi scal
2007 and 2006. Total fair value of stock awards granted in fi scal 2007 and 2006
amounted to €83 and €62, respectively.
As of September 30, 2007, unrecognized compensation costs related to stock
awards amounted to €99, which is expected to be recognized over a weighted aver-
age vesting period of 2.5 years.
Employee share purchase program
Under an employee share purchase program with compensation character,
employees may purchase a limited number of shares in the Company at preferen-
tial prices once a year. Up to a stipulated date in the fi rst quarter of each fi scal
year, employees may order the shares, which are usually issued in the second
quarter of the fi scal year. The employee share purchase program is measured at
fair value. During the years ended September 30, 2007 and 2006 the Company
incurred compensation expense (before income taxes) of €27 and €38, respec-
tively, related to the sale of repurchased shares to employees, based on a preferen-
tial employee share price of €51.20 and €46.12, respectively, and a grant-date fair
value of €20.79 and €21.19, respectively, per share. For information on corre-
sponding Siemens share repurchases, see Note 26.
Year ended September 30,
2007 2006
Awards
Weighted
average
Grant-Date
Fair Value Awards
Weighted
average
Grant-Date
Fair Value
Nonvested, beginning of period 2,154,871 €56.44 1,136,048 €55.63
Granted 1,232,893 €67.70 1,076,860 €57.28
Vested – – – –
Forfeited (116,854) €59.38 (58,037) €56.17
Nonvested, end of period 3,270,910 €60.58 2,154,871 €56.44