Under the current plan performance and non-performance related stock options
or stock appreciation rights (SARs) are granted to senior management. Such a
grant takes place on the first day on which the DSM share is quoted
ex-dividend following the Annual General Meeting. The opening price of the DSM
share on that day is the exercise price of the stock options/SARs.
Stock options/SARs have a term of eight years and are subject to a vesting
period of three years. After this 3-year period one third of the stock
options/SARs (non-performance related) vest and two third of the stock
options/SARs which are performance related will become exercisable in whole,
in part, or not at all, depending on the Total Shareholder Return (TSR)
achieved by DSM in comparison with a peer group. Non-vested stock options/SARs
will be forfeited.
The exercise of stock options/SARs is regulated and in any case prohibited if
the Plan participant has insider knowledge. A number of senior officers as
well as a number of officers involved in processing financial statements are
not allowed to exercise their stock options/SARs during predefined closed
periods prior to the publication of quarterly or annual reports. In addition,
senior officers must obtain the approval of an officer ranking one level
higher in the organization.
Senior management that is not included in the before-mentioned groups are not
subject to any predefined black out periods and may exercise their stock
options at any time, provided they have no insider knowledge.
In specific circumstances the Compliance Officer may define special black out
periods for individuals or a group of employees, during which they are not
allowed to trade in any DSM securities.
Download (PDF: 13 Kb) a detailed overview of the management option rights,
personnel option rights and restricted shares.
