Investor Presentaiton
86
A.P. Moller-Maersk Annual Report 2020
Note 12 Share-based payment - continued
Financials
Consolidated financial statements
Notes index
Amounts in USD million =
Share option plans
In addition to the plan described above, A.P. Moller-Maersk
has share option plans for members of the Executive
Board and other employees. Each share option granted
is a call option to buy an existing B share of nominal DKK
1,000 in A.P. Møller-Mærsk A/S.
Table 12.2
Members of
the Executive
Board
Employees
Total
Average
exercise price¹
Table 12.2
Outstanding share options
1 January 2019
No.
No.
No.
DKK
9,985
36,707
Granted
7,894
22,444
46,692
30,338
Forfeited
6,080
3,125
9,205
Outstanding 31 December 2019
11,799
56,026
67,825
Exercisable 31 December 2019
18,435
18,435
10,006
7,622
9,141
9,057
10,630
Granted
8,741
31,383
40,124
Exercised
Forfeited
18,446
18,446
Outstanding 31 December 2020
Exercisable 31 December 2020
20,540
2,347
1,073
67,890
32,474
1,073
88,430
34,821
8,639
9,968
9,636
8,670
10,187
The following principal assumptions are used in the valuation:
Share options granted to
employees not members of
the Executive Board
2020
2019
The share options are granted at an exercise price cor-
responding to 110% of the average of the market price
on the first five trading days following the release of
A.P. Møller-Mærsk A/S' Annual Report. Exercise of the
share options is contingent upon the option holder still
being employed at the time of exercise. The share options
can be exercised when at least three years and no more
than six years (seven years for share options granted to
employees not members of the Executive Board) have
passed from the time of grant. Special conditions apply
regarding illness, death and resignation as well as changes
in the company's capital structure, etc.
The share options can only be settled in shares. A part of
A.P. Møller-Mærsk A/S' holding of own B shares will be
used to meet the company's obligations in respect of the
share option plans.
Table 12.3
The fair value per option granted to members of the
Executive Board is calculated at DKK 625 (DKK 1,782)
at the time of grant, based on Black & Scholes' option
pricing model. The fair value per option granted to em-
ployees not members of the Executive Board is calcu-
lated at DKK 697 (DKK 1,914) at the time of grant based
on the same option pricing model.
Table 12.3
Share options granted to
2020
members of
the Executive Board
2019
Share price, volume weighted average at the
date of grant, 1 April, DKK
5,975
8,668
5,975
8,668
Share price, five days volume weighted average
after publication of Annual Report, DKK
7,854
8,682
7,854
8,682
The fair value of awards granted to five (five) members of
the Executive Board and 89 (75) employees was USD 4m
(USD 9m) at the time of grant.
Exercise price, DKK
8,639
9,550
8,639
9,550
Exercise price following the demerger of
Maersk Drilling, 2 April 2019, DKK
N/A
7,670
N/A
7,605
Expected volatility (based on historic volatility)
31%
32%
31%
32%
Expected term (years)
5
5
5.75
5.75
Expected dividend per share, DKK
150
150
150
Risk free interest rate
-0.66%
-0.36%
-0.63%
150
-0.28%
The payroll expense related to the share option plan is
USD 5m (USD 5m).
The weighted average share price at the dates of exercise
of share options was DKK 12,389. No share options were
exercised during 2019.
The average remaining contractual life as per 31 December
2020 is 5.1 years (5.2 years) and the exercise price for out-
standing share options is DKK 8,670 (DKK 9,057).
1 Average exercise prices were reduced following the
demerger of Maersk Drilling.View entire presentation