Additional Paid-In CapitalAgio SHARE CAPITAL a. Authorised, Issued and Fully Paid-in Capital
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5122 34. MANAGEMENT STOCK OPTION PLAN continued
MSOP Stage 2
The Annual General Shareholders’ Meeting held on 16 May 2005 approved the MSOP Stage 2 amounting to 312,000,000 share options. Exercise price for each share is Rp1,190.50 full amount for
the first year of execution and Rp2,493 full amount for the remaining exercised period up to the end of the option life time in the fifth year.
The share option period of MSOP Stage 2 is 5 five years, since eligibility date on 21 June 2005. After 4 December 2006, all share options in MSOP Stage 2 could be 100.00 exercised from the total option
granted.
The fair value of MSOP Stage 2 which was granted on 16 May 2005 was Rp642.28 full amount based on a valuation report issued by PT Watson Wyatt Indonesia dated 27 February 2006.
MSOP Stage 3
The Annual General Shareholders’ Meeting held on 22 May 2006 approved the MSOP Stage 3 amounting to 309,416,215 share options. Exercise price per each share is Rp1,495.08 full amount
during the options period.
The decision of the stock options allocation and the policy of MSOP Stage 3 was determined by the Board of Commissioners on 28 July 2006. The option period of MSOP Stage 3 is 5 five years with
maximum execution twice a year which was announced in the Announcement of the Indonesia Stock Exchange formerly Jakarta Stock Exchange No. Peng-989BEJ-PSJP10-2006 dated 31 October
2006.
Based on the policy of the Board of Commissioners, on 30 October 2007, the Bank stated that MSOP Stage 3 can be exercised on the first period 7 May 2007 and 5 November 2007 at the maximum
50.00 from total options granted. The remaining 50.00 can be exercised on the next period the second period or the subsequent periods.
The fair value of MSOP Stage 3 stock options granted on 22 May 2006 was Rp593.89 full amount based on a valuation report issued by PT Watson Wyatt Indonesia dated 22 February 2007.
The fair value of MSOP Stage 1, MSOP Stage 2 and MSOP Stage 3 were estimated using the Black Scholes option pricing model with the following assumptions:
MSOP Stage 1 MSOP Stage 2
MSOP Stage 3
Risk free interest rate 8.46
9.50 11.65
Expected option period 5 years
5 years 5 years
Expected volatility of stock price 24.53
50.00 50.00
Expected dividend yield 7.63
7.63 7.75
Employee turnover rate 1.00
1.00 1.00
Number of options exercised for the period ended 31 December 2010 amounting to 26,377,937 options Notes 33a and 33b which consist of MSOP Stage 2 and MSOP Stage 3 amounting to 6,684,845
options and 19,693,092 options, respectively.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5123 34. MANAGEMENT STOCK OPTION PLAN continued
MSOP Stage 3 continued
Number of options exercised for the year ended 31 December 2009 amounting to 64,469,017 options Notes 33a and 33b which consist of MSOP Stage 2 and MSOP Stage 3 amounting to 86,800 options
and 64,382,217 options, respectively
Number of options exercised for the year ended 31 December 2008 amounting to 92,882,614 options Notes 33a and 33b which consist of MSOP Stage 1, MSOP Stage 2 and MSOP Stage 3 amounting to
4,835,783 options, 55,110 options and 87,991,721 options, respectively.
In relation to Bank Mandiri’s plans to undertake Rights Issue, 11,649,602 options and 3,224,264 options of MSOP Stage 3 have been exercised on 4 November 2010 and 14 December 2010, respectively. The
last period of MSOP Stage 3 execution was brought forward from 4 May 2011 to 14 December 2010. This particular change is in relation with Bank’s plan to undertake a Limited Public Offering Note 60.
As at 31 December 2010, there is no outstanding stock option.
A summary of the Management Stock Option Plan and the movements during the periods full amount:
31 December 2010
Weighted average Weighted average fair
excercise price of Number of
value of options options
options full amount
full amount Value of options
Options outstanding at beginning of the year
26,665,367 606.54
1,755.97 16,174
Options exercised during the year 26,377,937
606.15 1,747 .98
15,989 Options have been expired
287,430 642.09
2,489.09 185
Options that can be exercised at the end of the year
- -
- -
31 December 2009
Weighted average Weighted average fair
excercise price of Number of
value of options options
options full amount
full amount Value of options
Options outstanding at beginning of the year
91,134,384 597.64
1,572.36 54,465
Options exercised during the year 64,469,017
593.96 1,496.42
38,291
Options that can be exercised at the end of the year
26,665,367 606.54
1,755.97 16,174
31 December 2008
Weighted average Weighted average fair
excercise price of Number of
value of options options
options full amount
full amount Value of options
Options outstanding at beginning of the year
187,234,826 573.18
1,500.62 107,320
Options exercised during the year 92,882,614
566.63 1,456.49
52,630 Options have been expired
3,217,828 69.71
742.50 225
Options that can be exercised at the end of the year
91,134,384 597.64
1,572.36 54,465