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Long Term Retention Plan
 6 Months Ended
Jun. 30, 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 six and three-month periods ended June 30, 2014 and 2013:

 

     Six Months Ended June 30,      Three Months Ended June 30,  
     2014 (*)     2013      2014 (*)     2013  

LTRP 2009 (**)

    $ (439,050 )    $ 1,117,678       $ (88,128 )    $ 709,758   

LTRP 2010 (**)

      (190,575 )      1,017,936         (7,680 )      624,140   

LTRP 2011 (**)

      (57,217 )      1,006,713         43,895        595,513   

LTRP 2012

      89,984        1,155,216         90,931        657,381   

LTRP 2013

      1,039,219        —           435,358        —     

LTRP 2014

      1,488,721        —           690,929        —     
  

 

 

    

 

 

     

 

 

    

 

 

  
   $ 1,931,082      $ 4,297,543       $ 1,165,305      $ 2,586,792   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

(*) (Gain) / Loss
(**) For the six and three-month periods ended June 30, 2014, the table above shows a reduction of compensation costs for LTRP 2009, 2010 and 2011 as a consequence of a decrease in the Company’s stock price during the quarter.