|
Salaries, wages and other employee benefits | ||||
|
|
|
| ||
|
In € millions |
2010 |
2011 | ||
|
Salaries and wages |
(2,204) |
(2,298) | ||
|
Pension and other post-retirement cost |
(316) |
(320) | ||
|
Other social charges |
(460) |
(463) | ||
|
Total |
(2,980) |
(3,081) | ||
|
Employees | ||||
|
|
|
| ||
|
Average number during the year |
2010 |
2011 | ||
|
Decorative Paints |
21,800 |
22,400 | ||
|
Performance Coatings |
20,600 |
21,300 | ||
|
Specialty Chemicals |
11,100 |
11,300 | ||
|
Corporate and other |
1,600 |
1,400 | ||
|
Total |
55,100 |
56,400 | ||
At year-end 2011, we employed 57,240 staff for ongoing activities (year-end 2010: 55,590 employees). The net increase was due to:
- A net increase of 900 due to acquisitions and divestments, mainly from the Schramm acquisition (790 employees).
- A decrease of 1,050 employees due to ongoing restructuring.
- An increase of 1,800 employees, mainly due to new hires in high growth markets.
The average number of employees working outside the Netherlands was 51,400 (2010: 50,100).
|
Salaries, wages and other employee benefits per cost category | ||||
|
|
|
| ||
|
In € millions |
2010 |
2011 | ||
|
Cost of sales |
(978) |
(969) | ||
|
Selling expenses |
(1,109) |
(1,173) | ||
|
Research and development expenses |
(206) |
(235) | ||
|
General and administrative expenses |
(587) |
(645) | ||
|
Net financing expenses related to pensions and other post-retirement benefits |
(100) |
(59) | ||
|
Total |
(2,980) |
(3,081) | ||
Share-based compensation
Share-based compensation relates to the performance-related share plan as well as the performance-related stock option plan. Charges recognized in the 2011 statement of income for share-based compensation amounted to €34 million and are included in salaries and wages (2010: €30 million).
Performance-related share plan
Under the performance-related share plan, a number of conditional shares are granted to the members of the Board of Management and executives each year. The number of participants of the performance-related share plan at year-end 2011 was 636 (2010: 589).
The conditional grant of shares is for 50 percent linked to the ranking of our company in the Dow Jones Sustainability Index (DJSI) and the remaining 50 percent is linked to the relative TSR performance of the company compared to the peer group. As from the series 2011–2013, the grant will be linked for 50 percent to the Sustainable Asset Management (SAM) benchmark. The conditional shares vested in 2011 as follows:
-
Our TSR performance over the 2009-2011 series resulted in an 11th position within the ranking of the peer group companies. This did not result in vesting of conditional shares.
-
The average position in the DJSI benchmark resulted in an 2nd position within the ranking.
As a result, the conditional shares of the 2009-2011 series vested for 62.5 percent (series 2008-2010: zero percent), including dividend shares of 11.68 percent, the final vesting percentage amounted to 69.8 percent (series 2008-2010: zero percent).
|
Performance-related shares | ||||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||
|
Series |
Balance per January 1, 2011 |
Granted in 2011 |
Vested in 2011 |
Forfeited in 2011 |
Dividend in 20111 |
Balance at December 31, 2011 |
Vested on January 1, 2012 | |||||||||
| ||||||||||||||||
|
2009 – 2011 |
1,175,233 |
1,942 |
– |
(458,041) |
36,350 |
755,484 |
755,484 | |||||||||
|
2010 – 2012 |
755,184 |
10,694 |
– |
(10,137) |
24,659 |
780,400 |
– | |||||||||
|
2011 – 2013 |
– |
845,967 |
– |
(5,742) |
25,879 |
866,104 |
– | |||||||||
|
Total |
1,930,417 |
858,603 |
– |
(473,920) |
86,888 |
2,401,988 |
755,484 | |||||||||
The fair value of the performance-related share plan at grant date is amortized as a charge against income over the three-year vesting period. The average fair value was calculated by external experts and amounted to €46.91 per performance-related share conditionally granted in 2011 (2010: €46.24). The 2011 charge recognized for performance-related shares aggregated €34 million (2010: €29 million).
The share price of a common AkzoNobel share at December 31, 2011, amounted to €37.36 (2010: €46.49). For further details on our performance-related share plan, refer to the Remuneration report.
|
Stock options | ||||||||||||||
|
|
|
|
|
|
|
|
| |||||||
|
Year of issue |
Exercise price in € |
Outstanding per January 1, 2011 |
Exercised in 2011 |
Expired in 2011 |
Forfeited in 2011 |
Outstanding at December 31, 2011 |
Expiry date | |||||||
|
2001 |
46.75 |
51,322 |
(51,322) |
– |
– |
– |
April 30, 2011 | |||||||
|
2002 |
46.53 |
107,250 |
– |
– |
– |
107,250 |
April 25, 2012 | |||||||
|
2004 |
31.45 |
202,200 |
(199,900) |
(2,300) |
– |
– |
April 25, 2011 | |||||||
|
2005 |
31.98 |
296,581 |
(91,896) |
– |
(1,925) |
202,760 |
April 24, 2012 | |||||||
|
2006 |
46.46 |
451,459 |
(51,881) |
– |
(2,100) |
397,478 |
April 26, 2013 | |||||||
|
2007 |
58.89 |
502,369 |
– |
– |
(6,263) |
496,106 |
April 26, 2014 | |||||||
|
Total |
|
1,611,181 |
(394,999) |
(2,300) |
(10,288) |
1,203,594 |
| |||||||
|
Number and weighted average exercise price stock options | ||||
|
|
|
| ||
|
|
Number of options |
Weighted average exercise price in € | ||
|
Balance at January 1, 2010 |
1,897,850 |
43.14 | ||
|
Forfeited during the period |
(7,237) |
45.71 | ||
|
Exercised during the period |
(279,432) |
27.76 | ||
|
Balance at December 31, 2010 |
1,611,181 |
45.80 | ||
|
Forfeited during the period |
(12,588) |
47.69 | ||
|
Exercised during the period |
(394,999) |
35.53 | ||
|
Balance at December 31, 2011 |
1,203,594 |
49.15 | ||
Stock option plans
Prior to 2008, performance-related stock options were granted to members of the Board of Management and executives. We have not purchased own shares in connection with the stock option plan. The stock options are equity-settled and all exercisable. No options on American Depositary Receipts were outstanding at year-end (2010: 23,000).
For stock options exercised during 2011, the weighted average of the actual share price at date of exercise amounted to €49.71 (2010: €44.00). A number of 1.0 million outstanding stock options are non-dilutive but could potentially dilute basic earnings per share in the future.
