Stock option schemes - SAP extends stock option.
SAP, Europe’s largest software company, is to extend its stock option scheme to its senior managers in the UK, writes Alex Miller. The move designed to stem the flow of employees leaving the company, will be introduced during the year in what is thought to be the first such move in the UK. It will mean senior managers in the company will be eligible for the stock option and convertible bond program, called the SAP AG 2000 Long Term Incentive Plan. The LTI plan consists of two key programs, stock options and convertible bonds and includes a performance hurdle on the value of the stock options where they only have value provided the growth in the SAP preference share price surpasses the performance of a reference index within a defined period. A spokesman for the company, said: ‘Full details for the UK will be worked out over the coming months, but the move is relevant here.’ SAP co-chief executive Hasso Plattner said: ‘We are in competition for customers but also for workers and we must make sure we can compete with Oracle and Microsoft in this market.’