The Supervisory Board will issue options to the Executive Board and Management Team again in 2011. The exercise price is fixed at DKK 443.26 based on the average price on NASDAQ OMX Copenhagen for the first 10 business days after publication of Annual Report 2010. 19,426 options will be issued in 2011.
The market value of the issued options has now been determined at € 0.3m. Market value is calculated in accordance with the Black-Scholes model with a volatility of 41% (calculation based on the past 36 months), an interest-rate level of 5% and a share price of DKK 443.26, and it is assumed that the issued options will be exercised in March 2014.
The measurement takes into consideration future dividend distribution corresponding to 3% of the share price.
Background information about Solar’s incentive scheme
In 2006, the Supervisory Board established an incentive scheme for the Executive Board and in 2008, for the Management Team in the Solar Group. The scheme is based on options that entitle the holder to buy shares from the company's holding of treasury shares.
The reason for introducing the scheme was to seek to bind employees closer to the group as well as to establish a share price-dependent incentive for participants, thus enhancing agreement between the interests of shareholders and participants. As at 31 December 2010, share options outstanding totalled 121,362.
Best regards,
Solar A/S
Flemming H. Tomdrup
