See also
Share options
Options were a substantial component of our share-based program prior to 2004. We discontinued the practice of issuing options and the majority of the original grants have since vested. Share options were granted with an exercise price equal to the market price of Credit Suisse Group’s shares on the date of grant and expire after ten years.
Share options granted to employees entitle the holder to purchase one Credit Suisse Group share at a stated exercise price subject to continued employment with the Group through the vesting period, restrictive covenants and cancellation provisions.
Share options granted as compensation awards generally vest on the grant date, whereas share options granted as retention incentive awards generally vest between one and five years.
The weighted-average fair value of options granted during 2006 and 2005 was CHF 12.12 and CHF 9.50, respectively. There were no options granted during 2007. As of December 31, 2007, the aggregate intrinsic value of options outstanding and exercisable was CHF 454 million and the weighted-average remaining contractual term was 3.5 years. As of the exercise date, the total intrinsic value of options exercised during 2007, 2006 and 2005 was CHF 318 million, CHF 235 million and CHF 141 million, respectively. Cash received from option exercises during 2007, 2006 and 2005 was CHF 350 million, CHF 330 million and CHF 196 million, respectively.
As of December 31, 2007, there were 2.5 million fully vested and exercisable options outstanding containing a cash settlement feature. These options had a weighted-average exercise price of CHF 69.68 and a weighted-average remaining contractual term of 1.9 years. During 2007, there were 0.3 million exercises of options with a cash settlement feature,no forfeitures and 0.7 million of these options were settled for CHF 23.7 million in cash.
| Share option activities
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| 2007 | 2006 | 2005 | ||||||||||||||||||
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Number of share awards in million |
| Weighted- average grant-date fair value in CHF |
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Number of share awards in million |
| Weighted- average grant-date fair value in CHF |
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Number of share awards in million |
| Weighted- average grant-date fair value in CHF |
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| Share options | ||||||||||||||||||||
| Balance at beginning of period | 49.0 | 59.64 | 57.7 | 57.48 | 64.8 | 55.01 | ||||||||||||||
| Granted | – | – | 0.1 | 71.60 | 0.1 | 48.05 | ||||||||||||||
| Exercised | (7.8) | 47.50 | (7.5) | 44.44 | (6.2) | 31.93 | ||||||||||||||
| Settled | (0.7) | 60.19 | (0.6) | 59.34 | (0.1) | 65.88 | ||||||||||||||
| Forfeited | (0.7) | 75.31 | (0.6) | 51.55 | (0.6) | 50.03 | ||||||||||||||
| Expired | (0.2) | 35.52 | (0.1) | 17.65 | (0.3) | 57.09 | ||||||||||||||
| Balance at end of period | 39.6 | 61.86 | 49.0 | 59.64 | 57.7 | 57.48 | ||||||||||||||
| Exercisable at end of period | 38.2 | 61.12 | 44.1 | 60.24 | 53.9 | 58.60 | ||||||||||||||