The Group recognized compensation expense related to its significant share-based compensation plans, described above, as follows:
| in € m. | 2003 | 2002 | 2001 |
| DB Global Partnership1 | 8 | 4 | 19 |
| DB Global Share Plan | 3 | 3 | 4 |
| DB Share Scheme/Restricted Equity Units | 773 | 469 | 726 |
| Global Equity Plan | (3) | (6) | 302 |
| Stock Appreciation Rights Plans2 | (13) | 35 | 93 |
| db Share Plan | (20) | (45) | 53 |
| Total | 748 | 460 | 1,197 |
| 1 | Compensation expense for the years ended December 31, 2003, 2002 and 2001 included € 5.9 million, € 3.9 million and € 19 million, respectively, related to DB Equity Units granted in February 2004, February 2003 and February 2002, respectively. |
| 2 | For the years ended December 31, 2003, 2002 and 2001, net (gains) losses of € (13) million, € 226 million and € 27 million, respectively, from nontrading equity derivatives , used to offset fluctuations in employee share-based compensation expense, were included. |
The following is a summary of the activity in the Group's current compensation plans involving share and option awards for the years ended December 31, 2003, 2002 and 2001 (amounts in thousands of shares, except exercise prices):
| DB Global Partnership | DB Global Share Plan | |||||
| DB Equity | Performance | Weighted- | Shares | Performance | Weighted- | |
| Units1 | Options2 | average | Options3 | average | ||
| Exercise | Exercise | |||||
| Price | Price | |||||
| Balance at December 31, 2000 | – | – | – | – | – | – |
| Granted | – | – | – | – | 176 | € 87.66 |
| Issued | – | – | – | 237 | – | – |
| Forfeited | – | – | – | – | (1) | € 87.66 |
| Balance at December 31, 2001 | – | – | – | N/A | 175 | € 87.66 |
| Granted | 451 | 12,156 | € 89.96 | – | 2,082 | € 55.39 |
| Issued | – | – | – | 471 | – | – |
| Forfeited | (43) | (392) | € 89.96 | – | (22) | € 57.99 |
| Balance at December 31, 2002 | 408 | 11,764 | € 89.96 | N/A | 2,235 | € 57.90 |
| Granted | 122 | 14,615 | € 47.53 | – | 1,691 | € 75.24 |
| Issued | – | – | – | 396 | – | – |
| Forfeited | (3) | (490) | € 58.58 | – | (81) | € 57.00 |
| Balance at December 31, 2003 | 527 | 25,889 | € 66.60 | N/A | 3,845 | € 65.54 |
| Weighted-average remaining contractual life at | ||||||
| 31. Dez 02 | 5 years | 5 years | ||||
| 9 months | ||||||
| 31. Dez 03 | 4 years | 5 years | ||||
| 8 months | 4 months | |||||
| N/A Not applicable. Participant is fully vested for shares purchased under the DB Global Share Plan. | |
| 1 | The weighted-average grant-date fair value per share of deferred share awards granted in 2003 and 2002 was € 38.62 and € 74.96, respectively. |
| 2 | The weighted average grant-date fair value per option, including the PAR, granted during 2003 and 2002 was € 11.97 and € 21.24, respectively. Performance Options and PARs granted in 2003 and 2002 related to the 2002 and 2001 performance year, respectively. |
| 3 | The weighted-average grant-date fair value per option granted during 2003, 2002 and 2001 was € 9.71, € 12.35 and € 22.76, respectively. |
There were no options exercisable under the DB Global Partnership Plan or the DB Global Share Plan at December 31, 2003.
In addition, approximately 101,000 DB Equity Units were granted in February 2004 related to the 2003 performance year and included in compensation expense for the year ended December 31, 2003. Approximately 25,000 DB Equity Units were granted as a retention incentive in February 2004 and not included in compensation expense for the year ended December 31, 2003. The weighted-average grant date fair value per DB Equity Unit was € 58.11.
Approximately 115,000 Performance Options and PARs were granted in February 2004 related to the 2003 performance year and included in compensation expense for the year ended December 31, 2003. The weighted-average grant date fair value per option was € 13.02.
The following table details the distribution of options outstanding:
| Range of Exercise Prices | Options Outstanding | Options Exercisable | |||
| Options | Weighted- | Weighted- | Options | Weighted- | |
| Outstanding | average | average | Exercisable | average | |
| Exercise Price1 | Remaining | Exercise Price | |||
| Contractual | |||||
| Life (in Years) | |||||
| € 40.00 – 59.99 | 16,238 | 48.49 | 5.1 | – | N/A |
| € 60.00 – 79.99 | 1,691 | 75.24 | 6 | – | N/A |
| € 80.00 – 99.99 | 11,805 | 89.93 | 4.1 | – | N/A |
| N/A Not applicable. | |
| 1 | The weighted-average exercise price does not include the effect of the PARs for the DB Global Partnership Plan. |
The following is a summary of the activity in the Group’s compensation plans involving share awards (DB Share Scheme and Restricted Equity Units) for the years ended December 31, 2003, 2002 and 2001 (amounts in thousands of shares) broken into two categories in accordance with the Group's expensing policy. Expense for bonus awards is recognized in the applicable performance year. Expense for retention awards is recognized over the vesting period:
in thousands of shares |
Bonus | Retention | Total |
| Awards1 | Awards2 | ||
| Balance at December 31, 2000 | 3,425 | 6,887 | 10,312 |
| Granted | 6,607 | 9,495 | 16,102 |
| Issued | (4,012) | (2,902) | (6,914) |
| Forfeited | (297) | (176) | (473) |
| Balance at December 31, 2001 | 5,723 | 13,304 | 19,027 |
| Granted | 6,386 | 12,148 | 18,534 |
| Issued | (5,603) | (4,243) | (9,846) |
| Forfeited | (417) | (1,610) | (2,027) |
| Balance at December 31, 2002 | 6,089 | 19,599 | 25,688 |
| Granted | 1,036 | 26,823 | 27,859 |
| Issued | (4,439) | (3,210) | (7,649) |
| Forfeited | (228) | (1,749) | (1,977) |
| Balance at December 31, 2003 | 2,458 | 41,463 | 43,921 |
| 1 | The weighted-average grant-date fair values per share of deferred share awards granted during 2003, 2002 and 2001 were € 39.61, € 74.96 and € 97.96, respectively. |
| 2 | The weighted-average grant-date fair values per share of deferred share awards granted during 2003, 2002 and 2001 were € 34.62, € 72.56 and € 66.66, respectively. For the outstanding balance at year-end 2003, the weighted-average grant-date fair value per share was € 47.70 and approximately € 757 million were expensed by year-end 2003. |
In addition to the amounts shown in the table above, the Group granted the following equity awards in February 2004:
(a) Approximately 2.1 million shares under the DB Share Scheme with a fair value of € 60.94 per share were awarded as a bonus for the 2003 performance year and included in compensation expense for the year ended December 31, 2003.
(b) Approximately 19 million shares under the DB Share Scheme and Restricted Equity Units with an average fair value of € 56.96 were awarded as retention awards.
The following is a summary of the Group's share-based compensation plans (for which there will be no future awards) for the years ended December 31, 2003, 2002 and 2001.
| Global Equity | Stock | db Share Plan | ||
| Plan | Appreciation | |||
| Rights Plans | ||||
in thousands of equivalent shares |
Convertible | SARs2 | Shares | Options |
| Bonds1 | ||||
| Balance at December 31, 2000 | 17,396 | 6,508 | N/A | 3,488 |
| Granted-original | – | 16,510 | – | – |
| Exchanged | – | (16,223) | – | – |
| Granted-new | – | 10,328 | – | – |
| Convertible bonds converted | (5,054) | – | – | – |
| Convertible bonds redeemed | (11,086) | – | – | – |
| Forfeited | (649) | (195) | – | (12) |
| Balance at December 31, 2001 | 607 | 16,928 | N/A | 3,476 |
| Granted | – | 3 | – | – |
| Issued | – | (30) | – | (1,453) |
| Convertible bonds converted | (286) | – | – | – |
| Forfeited | (49) | (555) | – | (170) |
| Balance at December 31, 2002 | 272 | 16,346 | N/A | 1,853 |
| Granted | – | – | – | – |
| Issued | – | – | – | – |
| Convertible bonds redeemed | (269) | – | – | – |
| Forfeited | (3) | (175) | – | (14) |
| Expired | – | – | – | (1,839) |
| Balance at December 31, 2003 | – | 16,171 | N/A | – |
| N/A Not applicable. Participant was fully vested for shares purchased under the db Share Plan. | |
| 1 | Convertible bonds were included in long-term debt on the Consolidated Balance Sheet. |
| 2 | SARs were granted at various strike prices. In October 2001, 16,223,276 SARs with a strike price of € 98 vesting in 2004 and expiring in 2007 were replaced by 10,328,417 rights at a strike price of € 67. The weighted-average strike price of the outstanding SARs at December 31, 2003 is € 68.71 with an average remaining life of three years. |