Nokia 2007 Annual Report Download - page 195

22. Sharebased payment (Continued)
Performance Shares Outstanding as at December 31, 2007
(1)
Number of
performance
shares at
threshold
Weighted
average
grant date
fair value
EUR
(2)
Performance shares at January 1, 2005 ............................ 3 910 840
Granted ....................................................... 4469219 11.86
Forfeited ...................................................... 337242
Performance shares at December 31, 2005 ......................... 8 042 817
Granted ....................................................... 5140736 14.83
Forfeited ...................................................... 569164
Performance shares at December 31, 2006
(3)
....................... 12 614 389
Granted ....................................................... 2163901 19.96
Forfeited ...................................................... 1001332
Vested
(4)
...................................................... 222400
Performance shares at December 31, 2007
(5)
....................... 13 554 558
(1)
Includes also a minor number of performance shares granted under other than global equity
plans. For further information see “Other equity plans for employees” below.
(2)
The fair value of performance shares is estimated based on the grant date market price of the
Company’s share less the present value of dividends expected to be paid during the vesting
period.
(3)
Based on the performance of the Group during the Interim Measurement Period 20042005, under
the 2004 Performance Share Plan, both performance criteria were met. Hence, 3 595 339 Nokia
shares equalling the threshold number were delivered in 2006.
The performance shares related to the interim settlement of the 2004 Performance Share Plan are
included in the number of performance shares outstanding at December 31, 2006 as these perfor
mance shares will remain outstanding until the final settlement in 2008. The final payout, in
2008, will be adjusted by the shares delivered based on the Interim Measurement Period.
(4)
Includes also performance shares vested under other than global equity plans.
(5)
Based on the performance of the Group during the Interim Measurement Period 20052006, under
the 2005 Performance Share Plan, both performance criteria were met. Hence, 3 980 572 Nokia
shares equalling the threshold number were delivered in 2007. The performance shares related to
the interim settlement of the 2005 Performance Share Plan are included in the number of perfor
mance shares outstanding at December 31, 2007 as these performance shares will remain out
standing until the final settlement in 2009. The final payout, in 2009, if any, will be adjusted by
the shares delivered based on the Interim Measurement Period.
Based on the performance of the Group during the Performance Period 20042007, under the 2004
Performance Share Plan, both threshold performance criteria were exceeded. Hence 7.6 million Nokia
shares are expected to vest in 2008. The shares will vest as of the date of the Annual General Meeting
on May 8, 2008.
Restricted shares
The Group has granted restricted shares to recruit, retain, reward and motivate selected high potential
employees, who are critical to the future success of Nokia. It is Nokia’s philosophy that restricted
F52
Notes to the Consolidated Financial Statements (Continued)