8 Personnel Expenses Resulting from Share-Based Payments

In the first nine months of 2014, personnel expenses resulting from share-based payments totaling € 3.2 million were recognized in the income statement (1-9/2013: € 4.1 million). This amount was comprised of € 2.9 million in share-based payments settled with equity instruments, of which personnel expenses in the amount of € 1.6 million were related to performance shares from LTI programs. Additional personnel expenses of € 0.3 million resulted from cash settled share-based payments in connection with stock appreciation rights.

The decline in the total of personnel expenses recognized is related to the modifications carried out in financial year 2013 for the 2011 and 2012 LTI programs. The vesting periods were modified so that the beneficiaries' claims from the 2011 LTI program become vested by one quarter on a yearly basis. However, in the case of the 2012 LTI program, claims become vested on a pro-rata temporis basis. With this modification, changes in the interpretation and development of the labor law were taken into account. As a result of the modification, expenses are recognized comparatively earlier within the four-year period resulting in a decline in personnel expenses in 2014 compared to the previous year.

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