|
+6 years and pro rata vesting is the sum of the following six values: |
6 years and pro rata vesting is the sum of the following six values:= 5 264.04 ( ) = 4 433.63 ( ) = 3 734.21 ( ) = 3 145.13 ( ) = 2 648.97 ( ) = 2 231.09 ( ) The sum of the discounted variable remuneration is EUR 21 457.07 (5 264.04 + 4 433.63 + 3 734.21 + 3 145.13 + 2 648.97 + 2 231.09). In case of pro rata vesting, the calculation can also be done using the present value formula: ( ) ( ) dvr = discounted variable remuneration vrpr = pro rata amount of variable remuneration (in the above example EUR 6 250) r = 1+i+g+id (i= inflation rate; g = rate for government bonds, id = incentive factor deferral) n = length of the deferral period The total variable remuneration for the purpose of calculating the ratio between the variable and fixed component of remuneration and the ratio between variable and fixed components of remuneration is calculated as follows. The amount of variable remuneration that can be discounted, because it is paid in instruments deferred for a period of at least five years, is EUR 37 500. However, different discount factors (or the present value formula of the box above) have been used, because this amount vests pro rata over a six-year period. The total amount of the discounted part of variable remuneration equals EUR 21 457.07, resulting in a total amount of variable remuneration for the purpose of calculating the ratio between variable and fixed remuneration of EUR 133 957.07; that is (150 000 - 37 500 + 21 457.07). The ratio between variable and fixed components of total remuneration in this example is (133 957.07/135 000)*100 = 99.23%. Comparison of the effect of the discount rate between pro rata vesting and full vesting after 1. Overview
1.1 References1.2 Identified Requirements1.3 Related Standards2. Identified Requirements
3. Related Standards
|