Share-based programmes in 2008 

Option programme (2008)
The Board of Directors decided to discontinue the option programme introduced in 1999.

Two share-award programmes (2008)
The two share-based programmes that were introduced in 2004 have been continued in 2008. The weighting between plans has been changed with a higher percentage of grants being under the performance related plan. The 2007 programme for Group Executives remains in place, but no additional grants were made.

The general performance related plan will deliver awards over a three-year period starting 1 March 2009, based on the Group performance during each of the preceding financial years. If the target is not reached no shares will be granted, but if the target is exceeded, up to 150% of the granted shares can be vested. The target is decided upon on an annual basis and for the first vesting in 2009 the target is ROCE 9.5%, which corresponds to the weighted average cost of capital. A maximum vesting will be reached at a ROCE at 12.0%, and no shares will vest if ROCE is below 8.0%. These measures are decided by the Compensation Committee after consideration of the forecasts of financial results. In 2007 ROCE (after adjustment for  non-recurring items) was 8.4%.

The second programme - the restricted share plan - is not performance related. Shares delivered over a 3 year period starting 1 March 2009, based on continued employment.
The target number of shares granted in the performance related programme totals 727 000 shares, but the vesting can then vary according to the company’s results between 0–1 091 000 shares. A total of 385 000 shares may be awarded under the restricted share programme during the period 2008 to 2010.

GET members did not receive awards in the 2008 share plans; they received awards in 2007 in the Senior Executive section of the performance share plan intended to cover 2007 and 2008.

Under all share programmes, the rights to shares are lost if the employee resigns his position or employment is terminated by the company.

Key talents (2008)
There is also a share programme directed towards key talents. The shares are allocated to a maximum of 50 key talents with a condition that they remain in employment for at least 5 years. The maximum number of shares that may be issued is 187 500.