NOTES
72•Consolidated financial statements
PANDORAANNUAL REPORT2014
SECTION 2: RESULTS FOR THE YEAR, CONTINUED
2.4 SHARE-BASED PAYMENTSAND EMPLOYEE SHARES, CONTINUED
Accounting policies
Key employees of PANDORA receive remuneration in
the form of share-based payment transactions, whereby
employees render services as consideration for equity
instruments (‘equity-settled transactions’).
Equity-settled transactions
The cost of equity-settled transactionswith employees is
measured by reference to the fair value at the date onwhich
they are granted.The calculated fair values are based on the
Black-Scholesmodel formeasuring share options.The cost
of equity-settled transactions is recognised together with a
corresponding increase in equity over the period inwhich
the performance and/or service conditions are fulfilled.
The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting date
reflects the extent towhich the vesting period has expired
and PANDORA’s best estimate of the number of equity
instruments that will ultimately vest.The income statement
expense or credit for a period represents themovement in
cumulative expenses recognised at the beginning and end
of that period.
Purchase of
Sale
2012
shares
of shares
2013
Executive Board
Allan Leighton
12,380
-
-
12,380
StenDaugaard
10,785
-
-10,785
-
HenrikHolmark
426,825
-
-137,241
289,584
Total number of shares
449,990
-
-148,026
301,964
Board of Directors
MarcelloBottoli
29,461
-
-
29,461
Allan Leighton
12,380
-
-
12,380
Christian Frigast
59,636
1,368,149
-641,269
786,516
TorbenBallegaard Sørensen
192,670
-
-179,996
12,674
AndreaAlvey
6,107
-
-
6,107
NikolajVejlsgaard
57,630
837,158
-393,333
501,455
RonicaWang
4,070
-
-
4,070
Anders Boyer-Søgaard
-
4,121
-
4,121
Total number of shares
361,954
2,209,428
-1,214,598
1,356,784
Allan Leighton transferred to Executive Board
-12,380
-
-
-12,380
Total number of shares
349,574
2,209,428
-1,214,598
1,344,404
Assumptions
Assumptions concerning the calculationof fair value at date
of grant:
Given that the exercise price for one option equals 1%
of themarket price of one share at grant date, the fair value
of one option almost equals themarket value of one share
at grant date.The assumptions listed below therefore have
a very limited impact on the estimated fair value of the
options granted.
Exercise
Expected Risk-free Dividend
Year of grant
price volatility interest rate per share
20143-year
2.99
46% 0.47% 6.50
2013 1-year
2.10
48% 0.09% 5.50
2013 3-year
1.25
48% 0.16% 5.50
20123-year
0.52
100% 1.34% 5.50
For the above programmes, volatility is based on historical
volatility of the PANDORA share based on the preceding
two years.
