talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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276<br />
Financial statem<strong>en</strong>ts Notes<br />
G<strong>en</strong>eral information<br />
Talanx Group. Annual Report <strong>2011</strong><br />
Accounting principles<br />
and policies<br />
Segm<strong>en</strong>t <strong>report</strong>ing Consolidation,<br />
business combinations<br />
Non-curr<strong>en</strong>t assets held for<br />
sale and disposal <strong>group</strong>s<br />
The maximum term of the stock appreciation rights is t<strong>en</strong> years, comm<strong>en</strong>cing at the <strong>en</strong>d of the<br />
year in which they are awarded. Stock appreciation rights which are not exercised by the <strong>en</strong>d of<br />
the 10-year period lapse. Stock appreciation rights may only be exercised after a waiting period<br />
and th<strong>en</strong> only within four exercise periods each year. For 40% of the stock appreciation rights (first<br />
tranche of each allocation year) the waiting period is two years, for each further 20% (tranches two<br />
to four of each allocation year) of the stock appreciation rights the waiting period is ext<strong>en</strong>ded by<br />
one further year. Each exercise period lasts for t<strong>en</strong> trading days, comm<strong>en</strong>cing on the sixth trading<br />
day after the date of publication of each quarterly <strong>report</strong> of Hannover Rückversicherung AG.<br />
On 4 November 2009, the Supervisory Board of Hannover Re resolved to ext<strong>en</strong>d the waiting period<br />
applicable to members of the Executive Board from two to four years for stock appreciation rights<br />
granted from the 2010 allocation onwards; on 23 November 2009 the Executive Board of Hannover<br />
Re decided to ext<strong>en</strong>d the waiting period accordingly for the other members of the Group’s s<strong>en</strong>ior<br />
managem<strong>en</strong>t. Upon expiry of this waiting period a maximum 60% of the stock appreciation rights<br />
awarded for any allocation year may be exercised. The waiting period for each further 20% of the<br />
stock appreciation rights awarded to a member of managerial staff for that allocation year is one<br />
year.<br />
The amount paid out to the party exercising a stock appreciation right is the differ<strong>en</strong>ce betwe<strong>en</strong> the<br />
baseline price and the curr<strong>en</strong>t market price of the Hannover Re share at the time of exercise. In this<br />
context, the baseline price corresponds to the arithmetic mean of the closing prices of Hannover Re<br />
shares on all trading days of the first full cal<strong>en</strong>dar month of the allocation year in question. The curr<strong>en</strong>t<br />
market price of the Hannover Re share at the time wh<strong>en</strong> stock appreciation rights are exercised<br />
is the arithmetic mean of the closing prices of the Hannover Re share on the last 20 trading days<br />
prior to the first day of the exercise period.<br />
The amount paid out is limited to a maximum calculated as the quoti<strong>en</strong>t of the total volume of<br />
remuneration to be granted in the allocation year and the total number of stock appreciation rights<br />
awarded in that year.<br />
If the holder’s contract with the company is terminated by either party or by mutual agreem<strong>en</strong>t or<br />
<strong>en</strong>ds upon expiry of a fixed term, a holder of stock appreciation rights is <strong>en</strong>titled to exercise all such<br />
rights in the first exercise period thereafter. Any stock appreciation rights not exercised within this<br />
period and any in respect of which the waiting period has not yet expired will lapse. Retirem<strong>en</strong>t,<br />
incapacity or death of the member of managem<strong>en</strong>t does not constitute termination for the purpose<br />
of the exercise of stock appreciation rights.