2010
Following the expiry of Bank Package I, the Group granted rights to conditional shares to staff at Danske Markets and Danske Capital. The grant was part of the variable remuneration for 2010 and complies with international guidelines.
The calculation of fair value at the end of 2010 is based on the following assumptions: Share price: 143 (2009:118). Dividend payout ratio: 1.5% (2009: 0%). Rate of interest: 1.2-1.8% (2009: 1.6-2.7%), equal to the swap rate. Volatility: 35% (2009: 52%). Average time of exercise: 1-2 years (2009: 1-3 years). The volatility estimate is based on historical volatility.
The fair value of the conditional shares is calculated as the share price less the payment made by the employee.