Fortis’ remuneration package for its employees and members of the Executive Committee includes share-related instruments. These benefits take the form of:
- employee-share options
- shares offered at a discount
- restricted shares.
On 25 September 2007, Fortis launched a capital increase in the form of a Rights Issue in order to partly finance its contribution to the bid for ABN AMRO. A substantial number of new Fortis shares were consequently issued at a discount. This brought down the value of portfolios of Fortis stock option holders and participants in restricted share plans.
On 20 September 2007, the Board of Directors of Fortis decided to adjust the conditions of all stock-option plans and all restricted-share plans in order to neutralise the direct impact of the capital increase on the portfolios. These adjustments are made according to the Euronext.liffe formula. The adjustment ratio is 0.83715.
To neutralise the direct impact of the capital increase on portfolios, the exercise price, the number of options and the number of committed restricted shares is amended in accordance with the adjustment ratio, as follows:
- the exercise price of the options will be reduced (current exercise price multiplied by the adjustment ratio)
- the number of options will be increased (current number of options divided by the adjustment ratio)
- the number of committed restricted shares will be increased (current number of committed restricted shares divided by the adjustment ratio).
