XML 54 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Long Term Retention Plan
 3 Months Ended
Mar. 31, 2012
Long Term Retention Plan [Abstract]  
Long Term Retention Plan

9. Long Term Retention Plan

On August 8, 2008, the Board of Directors approved an employee retention program (“the 2008 LTRP”) that will be payable 50% in cash and 50% in shares, in addition to the annual salary and bonus of certain executives. Payments will be made in the first quarter on annual basis according to the following vesting schedule:

 

  •  

Year 1 (2008): 17%

 

  •  

Year 2 (2009): 22%

 

  •  

Year 3 (2010): 27%

 

  •  

Year 4 (2011): 34%

The shares granted for the 2008 LTRP were valued at the grant-date fair market value of $36.8 per share. As of March 31, 2012, the Company fully paid the 2008 LTRP.

For the three-month period ended March 31, 2012, the related accrued compensation expense was $20,595 corresponding $11,036 to the share portion of the award credited to Additional Paid-in Capital and $9,559 to the cash portion included in the Balance Sheet as Social security payable.

For the three-month period ended March 31, 2011, the related accrued compensation expense was $69,818 corresponding $33,710 to the share portion of the award credited to Additional Paid-in Capital and $36,108 to the cash portion included in the Balance Sheet as Social security payable.

On July 15, 2009, June 25, 2010 and August 1, 2011, the Board of Directors, upon the recommendation of the compensation Committee approved the 2009, the 2010 and the 2011 employee retention programs (“the 2009, 2010 and 2011 LTRP”). The 2011 LTRP was approved by the Compensation Committee on June 27, 2011. The awards under the 2009, 2010 and 2011 LTRP are fully payable in cash in addition to the annual salary and bonus of each employee.

 

The 2009, 2010 and 2011 LTRP will be paid in 8 equal annual quotas (12.5% each) commencing on March 31, 2010, March 31, 2011 and March 31, 2012, respectively. Each quota is calculated as follows:

 

  •  

6.25% of the amount is calculated in nominal terms (“the nominal basis share”),

 

  •  

6.25% is adjusted by multiplying the nominal amount by the average closing stock price for the last 60 trading days of the year previous to the payment date and divided by the average closing stock price for the last 60 trading days of 2008, 2009 and 2010 for the 2009, 2010 and 2011 LTRP, respectively. The average closing stock price for the 2009, 2010 and 2011 LTRP amounted to $13.81, $45.75 and $65.41, respectively (“the variable share”).

The 2008, 2009, 2010 and 2011 LTRP have performance and/or eligibility conditions to be achieved at each year end and also require the employee to stay in the Company at the payment date.

The following tables summarize the LTRP accrued compensation expense for the three-month periods ended March 31, 2012 and 2011:

 

 

                 
    Three Months Ended March 31,  
    2012     2011  

LTRP    2009

   $ 677,819     $ 519,086  

LTRP    2010

     584,157       507,977  

LTRP    2011

     567,062       —