Under the Management Share Option Plan (MSOP) adopted by the shareholders of adidas AG on May 20, 1999, and amended by resolution of the Annual General Meeting on May 8, 2002, and on May 13, 2004, the Executive Board was authorised to issue non-transferable stock options for up to 1,373,350 no-par-value bearer shares to members of the Executive Board of adidas AG as well as to managing directors/senior vice presidents of its related companies and to other executives of adidas AG and its related companies until August 27, 2004. The granting of stock options took place in tranches not exceeding 25% of the total volume for each fiscal year.
A two-year vesting period and a term of approximately seven years upon their respective issue applied for the stock options.
Show table: Management Share Option Plan (MSOP)
There were no stock options outstanding at the end of the years ending December 31, 2010 and 2009. No stock options were issued during 2010.
Stock options could only be exercised subject to the attainment of at least one of the following performance objectives:
(1) Absolute Performance: During the period between the issuance and exercise of the stock options, the stock market price for the adidas AG share – calculated upon the basis of the “total shareholder return approach” – has increased by an annual average rate of at least 8%.
(2) Relative Performance: During the same period, the stock market price for the adidas AG share must have developed by an annual average of 1% more favourably than the stock market prices of a basket of global competitors of the adidas Group and in absolute terms may not have fallen.
The stock options could only be exercised against payment of the exercise price. The exercise price corresponded to the arithmetical mean of the closing price of the adidas AG share over the last 20 trading days of the respective exercise period, less a discount, based on the extent to which the share price at exercise exceeded the absolute and relative performance hurdles outlined above. In any case, the exercise price was at least the lowest issue price as stated in § 9 section 1 of the German Stock Corporation Act (AktG), currently € 1.00 (i.e. € 4.00 per option).
Option terms and conditions stipulated that the stock options could have been used for existing common shares in lieu of new shares from the contingent capital, or in the place of common shares the discount was paid in cash.
The new shares participated in profits from the beginning of the year in which they were issued.Top