In the first quarter 2009 the Telekom Austria Group launched the sixth tranche ESOP 2009+ of the stock option plan 2004.
For the nine months period ended September 30, 2009 and 2008 the Telekom Austria Group recorded an expense of EUR 1.8 million and a benefit of EUR 9.1 million, respectively, excluding related payroll taxes and social contributions. The benefit in the nine months period ended September 30, 2008 is mainly due to the decline of the Telekom Austria share price at September 30, 2008 compared to December 31, 2007.
Compensation expense is measured based on the fair value of the options at each reporting date and recognized over the service period on a straight-line basis. The fair value estimation is based on a binomial option pricing model by applying the parameters summarized in the following table.