Sensitivity
Thousand euros
Equity
Income
2013
2012
2013
2012
+
0,5% (
rise in the rate curve)
-
3,790
1
1
-0,5% (
fall in the rate curve)
-
(3,790)
(1)
(1)
20.-
SHARE-BASED REMUNERATION SCHEMES
At 31 December 2012, the Group had implemented a share-based remuneration scheme approved inMay 2007.
On 28May 2013 the final settlement date of the equity swap expired. On this date, none of the legal rights had been exercised, since the quoted price of the shares of NH
Hoteles S.A. had not reached the minimum required for such exercise, whereupon on that date, pursuant to the legislation applicable to this remuneration scheme, said
legal rights automatically expired.
The changes in the number of rights granted within the framework of this Remuneration Scheme in 2013 and 2012 were as follows:
Plan 2007
In force at 31 December 2011
2,181,604
Cancelled options
(118,075)
In force at 31 December 2012
2,063,529
Cancelled options
(2,063,529)
In force at 31 December 2013
-
In order to hedge the possible financial liabilities of said remuneration scheme, the Group entered into a swap agreement to hedge the possible financial liabilities arising
from the exercise of this share-based incentives plan. Subsequently, a novation amending this agreement was signed on 13 July 2009 to complement the financial hedge
and adjust it to newmarket conditions.
Upon expiry of the last equity swap settlement date, a six-month extension of the swap agreement was granted. Subsequently, on 6 November 2013, the Group settled
the swap for EUR 30,601 thousand.
The change in fair value of this financial instrument to the settlement date has had a positive impact of EUR 9.5 million on the consolidated statement of comprehensive
income for the year ended 31 December 2013 (Note 27.7) (31 December 2012: positive impact of EUR 3 million).
Sensitivity analysis of NHHoteles share price
The changes in fair value of the derivative arranged by the Group with respect to the price of the shares of NH Hoteles, S.A. depended mainly on the change in market
price, the evolution of the euro yield curve and the dividend estimates made by market agents. The net fair value of the aforesaid derivative at the time of its early
settlement was EUR -30.061 million (31 December 2012: EUR -40.344 million).
A breakdown of the sensitivity analysis on the fair values of the derivatives contracted by the Group is shown below:
Sensitivity on Results
Thousand euros
2013
2012
+
10% (
rise in the share price)
-
2,409
-10% (
fall in the share price)
-
(2,409)
The sensitivity analysis shows that the negative fair value of the derivatives falls with increases in the share price, while their negative fair value increases with falls in
the share price.
Long-term share-based incentive plan
The shareholders at the Annual General Meeting held on 25 June 2013 approved the grant of a total of 896,070 shares of the Parent to the CEO. The Group valued
these shares at the closing market price on the date of establishing the commitment with the beneficiary. The item recognised in the income statement for 2013 in this
connection amounted to EUR 483 thousand (Note 30.1).
New long-term incentive plan
On 25 June 2013, the Company’s shareholders at the Annual General Meeting approved a long-term share-based incentive plan (“the plan”) aimed at the NH Hoteles
Group’s executives and employees as follows:
The plan will consist of the grant of ordinary shares of NHHoteles, S.A. to the beneficiaries calculated as a percentage of the fixed salary in accordance with their level of
responsibility. The number of shares to be granted shall be subject to the degree of fulfilment of the following objectives:
REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
90
