Norsk Hydro's Torvund Exercises Options, Buys Shares
Executive Vice President Tore Torvund, head of Hydro's oil and gas activities, has on December 22, 2006 exercised 67,620 stock options granted in 2002 and 2003 at a total value of NOK 8,368,557. On the same day Torvund purchased 20,000 shares at a price of NOK 190 per share. New shareholding is 38,580 shares.
The options granted in 2002 were related to total shareholder return for the Hydro share during the 3-year period from July 1, 2002 until June 30, 2005. 93.2 percent of the options are exercisable. The exercise price per share is NOK 66.23. The options granted in 2003 were related to total shareholder return for the Hydro share during the 3-year period from July 1, 2003 until June 30, 2006 and the exercise price is NOK 64.32 per share.
The exercise of options is carried out through a payment of cash amount equal to the difference between the exercise price and the average share price over the last five trading days amounting to NOK 189. The grants have been adjusted for the spin-off of Yara International ASA in 2004 and the 5 for 1 share split in 2006. The payment is subject to income tax.
In order to remain eligible to exercise vested options, Tore Torvund is required to convert net after tax value of exercised options into an equivalent value of Hydro shares until the value of the shareholding is equal to 100 percent of his annual base salary.
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