XML 55 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long term retention plan
 3 Months Ended
Mar. 31, 2014
Compensation And Retirement Disclosure [Abstract]  
Long term retention plan
8. Long term retention plan

On March 31, 2014, the Board of Directors, upon the recommendation of the Compensation Committee approved the 2014 employee retention programs (“2014 LTRP”). The awards under 2014 LTRP are payable in cash, common stock or a combination thereof, in addition to the annual salary and bonus of each employee. The Company has granted the right to any LTRP participant to request settlement in cash.

The 2014 LTRP will be paid in 6 equal annual quotas (16.67% each) commencing on March 31, 2015. Each quota is calculated as follows:

 

  •   8.333% of the amount is calculated in nominal terms (“the nominal basis share”),

 

  •   8.333% 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 2013. The average closing stock price for the 2014 LTRP amounted to $118.48 (“the variable share”).

 

The following tables summarize the 2009, 2010, 2011, 2012, 2013 and 2014 LTRP accrued compensation expense for the three-month periods ended March 31, 2014 and 2013:

 

     Three Months Ended March 31,  
     2014 (*)     2013 (*)  

LTRP 2009 (**)

    $ (350,923 )    $ 407,920   

LTRP 2010 (**)

      (182,895 )      393,796   

LTRP 2011 (**)

      (101,112 )      411,200   

LTRP 2012 (**)

      (947 )      497,836   

LTRP 2013

      603,861        —     

LTRP 2014

      797,791        —     
  

 

 

    

 

 

  
   $ 765,775      $ 1,710,752   
  

 

 

    

 

 

  

 

(*) (Gain) / Loss
(**) For the three-months period ended March 31, 2014 the table above shows a reduction of compensation costs for LTRP 2009, 2010, 2011 and 2012 as a consequence of a decrease in the Company’s stock price during the quarter.