Deutsche Bank Annual Report 2003 - Share-Based Compensation

Effective January 1, 2003, the Group adopted the fair-value -based method under SFAS 123 prospectively for all employee awards granted, modified or settled after January 1, 2003, excluding those related to the 2002 performance year. Prior to this the Group applied the intrinsic-value-based provisions of APB 25. Compensation expense for share-based awards is included in compensation and benefits on the Consolidated Statement of Income. See Note 1 for a discussion on the Group's accounting for share-based compensation.

In accordance with the requirements of SFAS 123, the pro forma disclosures relating to net income and earnings per common share as if the Group had always applied the fair-value-based method are provided in Note [1].

The Group’s share-based compensation plans currently used for granting new awards are summarized in the table below. These plans, and those plans no longer used for granting new awards, are described in more detail in the text that follows:


Plan Name	Eligibility	Vesting Period*	Expenses	Equity or	Performance
			Treatment	Equity Units	Options/
					Partnership
					Appreciation
					Rights
Share-based Compensation Plans
Restricted Equity Units	Select Executives	4.5 years	⁴	X
DB Global Partnership Plan
DB Equity Units
as bonus grants	Select Executives	2 years	³	X
as retention grants	Select Executives	3.5 years	⁴	X
Performance Options	Select Executives¹	4 years	³		X
Partnership Appreciation Rights	Select Executives¹	4 years	³		X
DB Share Scheme
as bonus grants	Select Employees	3 years	³	X
as retention grants	Select Employees	3 years	⁴	X
Employee Stock Purchase Plans
DB Global Share Plan
Share Purchases	All Employees²	None	²	X
Performance Options	All Employees²	2 years	⁴		X


*	Approximate period after which all portions of the award are no longer subject to the plan specific forfeiture provisions.
¹	Performance options and partnership appreciation rights are granted as a unit.
²	Employees electing to purchase shares are granted performance options. German employees and retirees are eligible to purchase shares at a discount, which is recognized as part of compensation expense during the year the shares are purchased.
³	The value is recognized during the applicable performance year as part of compensation expense.
⁴	The value is recognized on a straight-line basis over the vesting period as part of compensation expense.