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Long-Term Incentive Plan.
The following changes in the number of outstanding LTIP options occurred in the year under review:
|
LTIP |
2003 tranche |
2004 tranche |
|
Outstanding at the start of the fiscal year |
13,200 |
85,000 |
|
Change in grant/expired |
|
-33,500 |
|
Exercised |
-13,200 |
-39,500 |
|
Outstanding at the end of the fiscal year |
0 |
12,000 |
|
Exercisable at the end of the fiscal year |
0 |
12,000 |
The average weighted share price as of the exercise date amounted to €77.06 for the options from LTIP exercised in fiscal 2008. The exercise price of the outstanding LTIP options as of the balance-sheet date was €17.73. The weighted average remaining contractual term amounted to 0.4 years.
Beat.
The fair value of the performance shares Glossary conditionally granted in the Beat programme amounted to €22.25 per share as of the grant date for the 2008 tranche, €24.99 per share for the 2007 tranche, and €17.48 per share for the 2006 tranche. These values were calculated externally using a standard multivariate Black-Scholes model via Monte Carlo simulations on the basis of one million scenarios each. In the calculations, due consideration was taken of the maximum payment stipulated in the programme’s conditions for each conditionally granted performance share, the discount rates for the remaining term, the volatilities and the expected dividends of peer companies as well as the expected dividends of RWE AG.
In the year under review, the number of performance shares issued in the Beat programme developed as follows:
|
Beat |
2005 tranche |
2006 tranche |
2007 tranche |
2008 tranche |
|
Outstanding at the start of the fiscal year |
2,283,118 |
2,421,361 |
1,463,550 |
0 |
|
Granted |
|
|
|
1,668,836 |
|
Change in grant / expired |
|
-48,006 |
-12,246 |
-4,597 |
|
Paid out |
-2,283,118 |
|
|
|
|
Outstanding at the end of the fiscal year |
0 |
2,373,355 |
1,451,304 |
1,664,239 |
|
Payable at the end of the fiscal year |
0 |
2,373,355 |
0 |
0 |
The remaining contractual term amounted to one year for the 2007 tranche and two years for the 2008 tranche. The contractual term for the 2006 tranche ended upon completion of the year under review. In accordance with the plan regulations, the payment amount is €32.49 per performance share.
