NOTES
70•Consolidated financial statements
PANDORAANNUAL REPORT2014
Executive Board
Average exercise
andBoard of
Other
price per
Directors
employees
Total
option, DKK
Share options outstanding at 1 January 2014
263,495
1,248,090
1,511,585
0.93
Share options granted during the year
40,452
187,103
227,555
2.99
Share options exercised during the year
-68,014
-102,770
-170,784
1.47
Share options lapsedduring the year
-25,655
-159,901
-185,556
1.71
Share options outstanding at 31December 2014
210,278
1,172,522
1,382,800
Share options outstanding at 1 January 2013
233,870
874,253
1,108,123
0.70
Share options 2013 one-year programme
-
103,295
103,295
2.10
Share options granted during the year
84,441
352,787
437,228
1.25
Share options lapsedduring the year
-54,816
-82,245
-137,061
0.93
Share options outstanding at 31December 2013
263,495
1,248,090
1,511,585
Accounting policies
Wages and salaries, social security contributions, leave
and sick leave, bonuses and non-monetary benefits are
recognised in the year inwhich the services are rendered by
employees of PANDORA.Whenever PANDORA provides
long-term employee benefits, the costs are accrued to
match the rendering of the services by the employees.
Termination benefits are recognised at the time an
agreement betweenPANDORA and the employee ismade
and no future service is providedby the employee in
exchange for the benefits.
SHARE-BASEDPAYMENTSAND EMPLOYEE SHARES
The decision to grant share options ismade by the Board
of Directors in accordancewith general guidelines on
incentive payments for PANDORAA/S. Share options have
The total cost of share-based paymentswasDKK 71million
(2013: DKK 64million).The cost of share-based payments
is included in staff costs. In the remaining vesting periods,
an amount of DKK 62million (2013: DKK 59million) is
expected to be recognised in respect of the current share
option programmes.
As part of the severance agreement withAllan Leighton,
participation (pro rata) in the upcoming programmes
expected for 2015 and 2016 has been agreed. Salary costs
relating to this participationhas been included in 2014 for
share-basedpaymentswith an amount of DKK 7million.
For options exercised in 2014, the average share price
wasDKK 354.5 at the time of vesting.
been granted tomembers of the Executive Board, selected
members of theBoardof Directors andother key employees
in PANDORA.
Granted in2014
In 2014, PANDORA granted a total of 227,555 share
options.Themarket value at the grant datewasDKK 78
million.The value of the programme is recognisedover the
vesting period basedon the likelihood that targets for group
revenue and EBITDA for 2016will be reached, and that the
share optionswill vest.
Granted in 2013
In 2013, PANDORA granted a total of 540,523 share
options in two different share-basedprogrammes. One
programme comprises 103,295 optionswith a vesting
SECTION 2: RESULTS FOR THE YEAR, CONTINUED
STAFFCOSTS, CONTINUED
2.3
2.4
