Siemens 2010 Annual Report Download - page 292

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
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shares. While for the Share Matching Plan , the price of
the investment shares was fixed at the resolution date, for the
Share Matching Plan  the shares are purchased at the
market price at a predetermined date in the second quarter. Up
to the stipulated grant-dates in the first quarter of each fiscal
year, senior managers have to decide on their investment
amount for which investment shares are purchased. The in-
vestment shares are then issued in the second quarter of the
fiscal year. In exchange, plan participants receive the right to
one free share (matching share) for every three investment
shares continuously held over a period of three years (vesting
period) provided the plan participant has been continuously
employed by Siemens AG or another Siemens company until
the end of the vesting period. During the vesting period,
matching shares are not entitled to dividends. The right to re-
ceive matching shares forfeits if the underlying investment
shares are transferred, sold, pledged or otherwise encum-
bered. The Managing Board and the Supervisory Board of the
Company will decide, each fiscal year, whether a new Share
Matching Plan will be issued. The fair value at grant date of
investment shares resulting from the Share Matching Plan
 is €– as the investment shares are offered at market price.
In the first quarter of fiscal , the Company introduced the
Share Matching Plan  to members of the Managing Board
and to employees of Siemens AG and participating Siemens
companies. Plan participants could invest a certain percentage
of their compensation in Siemens shares at a predetermined
price set at the resolution date (investment shares). In ex-
change, plan participants receive the right to one free share
(matching share) for every three investment shares continu-
ously held over a period of three years (vesting period) pro-
vided the plan participant has been continuously employed by
Siemens AG or another Siemens company until the end of the
vesting period. Up to the stipulated grant-dates in the first
quarter of fiscal year  employees could order the invest-
ment shares, which were issued in the second quarter of the
fiscal year. During the vesting period, matching shares are not
entitled to dividends. The right to receive matching shares
forfeits if the underlying investment shares are transferred,
sold, pledged or otherwise encumbered. Investment Shares
resulting from the Share Matching Plan  are measured at
fair value at grant-date, which is determined as the market
price of Siemens shares less the present value of expected
dividends as investment shares do not carry dividend rights
until they are issued in the second quarter, less the share price
paid by the participating employee. Depending on the grant-
date being either November ,  or December , ,
the fair values amount to €. and €., respectively, per
instrument. The weighted average grant-date fair value
amounts to €. per instrument, based on the number of in-
struments granted.
c) Monthly Investment Plan
In the first quarter of fiscal , the Company introduced the
Monthly Investment Plan as a further component of the Share
Matching Plan. The Monthly Investment Plan is available for
employees – other than senior managers – of Siemens AG and
participating Siemens companies. Plan participants may invest
a certain percentage of their compensation in Siemens shares
on a monthly basis. The Managing Board of the Company will
decide annually, whether shares acquired under the Monthly
Investment Plan (investment shares) may be transferred to the
Share Matching Plan the following year. If management de-
cides that shares acquired under the Monthly Investment Plan
are transferred to the Share Matching Plan, plan participants
will receive the right to one free share (matching share) for
every three investment shares continuously held over a period
of three years (vesting period) provided the plan participant
had been continuously employed by Siemens AG or another
Siemens company until the end of the vesting period. Up to
the stipulated grant-dates in the first quarter of each fiscal
year, employees may decide their participation in the Monthly
Investment Plan and consequently the Share Matching Plan.
The Managing Board will decide, each fiscal year, whether a
new Monthly Investment Plan will be issued.
d) Resulting Matching Shares
Year ended
Sept. , 
Year ended
Sept. , 
Matching Shares Matching Shares
Outstanding, beginning of period 1,266,444 –
Granted  446,324 1,324,596
Forfeited (59,414) (40,637)
Settled (38,625) (17,515)
Outstanding, end of period 1,614,729 1,266,444
1 Thereof 6,837 and 25,962 to the Managing Board in fiscal 2010 and 2009.