Siemens 2008 Annual Report Download - page 297

Notes to Consolidated Financial Statements 201
(in millions of €, except where otherwise stated and per share amounts)
determined by the Managing Board in each case as approved by the Supervisory Board. Compensation in cash
shall be equal to the difference between the exercise price and the opening market price of the Company’s stock
on the day of exercising the stock options.
The issuance of stock options to members of the Managing Board on or after October 1, 2003, has been subject
to the proviso that the Supervisory Board may restrict the stock option exercise in the event of extraordinary,
unforeseen changes in the market price of the Siemens share. Those restrictions may reduce the number of
options exercisable by each Board Member, provide for an exercise in cash for a constricted amount only, or sus-
pend the exercise of the option until the extraordinary effects on the share price have ceased. The fair value of
the options has not been adjusted for effects resulting from such restrictions. Reasonable estimates cannot be
made until it is probable that such adverse events will occur. Since it is not possible to reliably estimate the fair
value of those options at the grant date, compensation costs are determined based on the current intrinsic value
of the option until the date at which the number of shares to which a Board member is entitled to and the exer-
cise price are determinable. Upon that date, fair value will be determined in accordance with the fair value rec-
ognition provisions of IFRS 2, Share-Based Payment, based on an appropriate fair value option pricing model.
The Supervisory and the Managing Board decided to not grant any stock options in scal 2007. The authority to
distribute options under the 2001 Siemens Stock Option Plan expired on December 13, 2006. Accordingly, no
further options will be granted under this plan.
Details on option exercise activity and weighted average exercise prices for the years ended September 30, 2008
and 2007 are as follows:
The following table summarizes information on stock options outstanding and exercisable at September 30,
2008:
Year ended September 30, 2008 Year ended September 30, 2007
Options
Weighted
average
exercise
price
Weighted
average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
value in
millions of € Options
Weighted
average
exercise
price
Outstanding, beginning of period 8,606,272 €72.13 26,729,148 €74.67
Granted – – – –
Options exercised (2,832,839) €69.91 (11,480,500) €70.03
Options forfeited/expired/settled (676,350) €70.30 (6,642,376) €85.98
Outstanding, end of period 5,097,083 €73.60 1.1 – 8,606,272 €72.13
Exercisable, end of period 5,097,083 €73.60 1.1 – 5,754,342 €70.90
Options outstanding Options exercisable
Exercise prices
Number of
Options
outstanding
Weighted
average
remaining
life (years)
Weighted
average
exercise price
per share
Aggregate
Intrinsic
Value as of
September 30,
2008
Number of
Options
exercisable
Weighted
average
remaining
life (years)
Weighted
average
exercise price
per share
Aggregate
Intrinsic
Value as of
September 30,
2008
€72.54 966,950 1.1 €72.54 – 966,950 1.1 €72.54 –
€73.25 2,289,991 0.1 €73.25 – 2,289,991 0.1 €73.25 –
€74.59 1,840,142 2.1 €74.59 – 1,840,142 2.1 €74.59 –