Siemens 2014 Annual Report Download - page 308

108 A. To our Shareholders 131 B. Corporate Governance 171 C. Combined Management Report

. Monthly Investment Plan
In fiscal  and , the Company issued a new tranche
under the Monthly Investment Plan that is a further compo-
nent of the Share Matching Plan and which is available for
employees – other than senior managers – of Siemens AG and
participating Siemens companies. Plan participants may invest
a specified percentage of their compensation in Siemens shares
on a monthly basis over a period of twelve months. The shares
are purchased at market price at a predetermined date once a
month. The Managing Board of the Company will decide annu-
ally, whether shares acquired under the Monthly Investment
Plan (investment shares) may be transferred to the Share
Matching Plan the following year. If the Managing Board
decides that shares acquired under the Monthly Investment
Plan are transferred to the Share Matching Plan, plan partici-
pants will receive the right to matching shares under the same
conditions applying to the Share Matching Plan described
above. Each fiscal year the Managing Board decides, whether
or not to issue a new tranche under the Monthly Invest-
ment Plan.
The Managing Board decided that shares acquired under the
tranches issued in fiscal  and  are transferred to the
Share Matching Plan as of February  and February ,
respectively.
. Base Share Program
In fiscal  and , the Company issued a new tranche
under the Base Share Program. Employees of Siemens AG and
participating domestic Siemens companies can invest a fixed
amount of their compensation into Siemens shares, sponsored
by Siemens with a tax beneficial allowance. The shares are
bought at market price at a predetermined date in the second
quarter and grant the right to receive matching shares under
the same conditions applying to the Share Matching Plan
described above. Each fiscal year, the Managing Board decides
whether or not to issue a new tranche under the Base Share
Program. The fair value of the base share program equals the
amount of the tax beneficial allowance sponsored by Siemens.
In fiscal  and , the Company incurred pretax expense
from continuing operations of €  million and €  million,
respectively.
. Resulting Matching Shares
Year ended September ,
 
Entitlements
to Matching
Shares
Entitlements
to Matching
Shares
Outstanding, beginning of period 1,733,497 1,545,582
Granted 609,758 713,245
Vested and transferred (437,989) (351,548)
Forfeited (92,035) (140,307)
Settled (63,055) (33,475)
Outstanding, end of period 1,750,176 1,733,497
Fair value was determined as the market price of Siemens
shares less the present value of expected dividends during the
vesting period as matching shares do not carry dividend rights
during the vesting period. Non-vesting conditions, i.e. the con-
dition neither to transfer, sell, pledge nor otherwise encumber
the underlying shares, were considered in determining the fair
value. In fiscal  and , the weighted average grant-
date fair value of the resulting matching shares is € . and
€ . per share respectively, based on the number of instru-
ments granted.
JUBILEE SHARE PROGRAM
Under the Jubilee Share Program, eligible employees of
Siemens AG and participating domestic Siemens companies
receive jubilee shares after having been continuously em-
ployed by the Company for  and  years (vesting period),
respectively. Generally, settlement of jubilee grants is in shares.
Jubilee shares are measured at fair value considering bio-
metrical factors. The fair value is determined as the market
price of Siemens shares at grant date less the present value of
dividends expected to be paid during the vesting period for
which the employees are not entitled to. The weighted average
fair value of each jubilee share granted in fiscal  for the th
and the 
th
anniversary is € . and € ., respectively,
based on the number of shares granted. The weighted average
fair value of each jubilee share granted adjusted by biometrical
factors (considering fluctuation) is € . and € ., respec-
tively, in fiscal . The weighted average fair value of each
jubilee share granted in fiscal  for the 
th
and the 
th
anniversary is € . and € . respectively, based on the
number of shares granted. The weighted average fair value
of each jubilee share granted adjusted by biometrical factors
( considering fluctuation) is € . and € . respectively, in
fiscal .