Annual report 2004 (English) - PDF 3546K - Imperial Tobacco

The average number of the Group’s employees in
2004, by category, was as follows:
Average
Number of
Employees (*)
Management 343
Other line personnel and clerical staff 6,164
Auxiliary staff 3,339
Manual workers 14,202
Total 24,048
(*) Excluding the 680 employees of proportionally
consolidated companies.
As of December 31, 2004, the Group companies
had the following compensation systems linked to
the share price:
1. Stock options on Altadis, S.A. shares:
On June 21, 2000, the Parent Company’s
Shareholders’ Meeting approved a compensation
plan for directors holding executive office,
executives and employees of the Altadis Group
based on the grant of options on the Company’s
shares. Two tranches of compensation were
approved in 2000 and 2002 for a total of
3,925,500 and 5,980,500 stock options,
respectively, at exercise prices of €16.20 and
€23.44 per share, respectively. These rights can
be exercised once four year have elapsed and
before the sixth year from the grant date.
As of December 31, 2004, 1,488,990 of the
options granted in 2000 are pending to be
exercised.
In relation to this stock option plan, in order to
hedge the possible fluctuations in the price of
Altadis, S.A. shares, the Parent Company
arranged two equity swap contracts, one
relating to the 2000 plan at €16.26 per share
and another at €22.74 per share for the 2002
plan.
2. Stock options on SEITA shares:
Altadis Group 2004 Financial Information 115
In 1996, 1997 and 1998 three compensation
plans for certain SEITA employees were
approved, based on the grant of options on the
company’s shares. These plans included a total
of 270,740, 278,633 and 354,815 stock
options which could not be exercised for a
period of five years from the grant date, at the
end of which they may be exercised at any time
in a period of three years, at exercise prices of
€28.86, €28.58 and €45.53 per share,
respectively. Of these plans, 61,239 stock
options had not been exercised as of December
31, 2004. Also, when the Parent Company
acquired its holding in SEITA, the latter’s
employees were guaranteed the possibility of
exchanging the shares relating to these stock
option plans for shares of Altadis, S.A., after the
option is exercised, and maintained the ratio of
the exchange of SEITA shares for shares of
Altadis, S.A. which was approved in the
acquisition of SEITA by Altadis, S.A. (6 shares of
SEITA for 19 shares of Altadis, S.A.). As of
December 31, 2004, the Group had recorded all
the SEITA shares required to meet its
commitments for unexercised stock options in
the “Long-Term Investments – Long-Term
Investment Securities” account. These shares
are valued at €2,566 thousand.
3. Stock options on LOGISTA shares:
In 2000 and 2002 two compensation plans for
certain LOGISTA employees were approved,
based on the grant of options on the company’s
shares. These plans included a total of 506,300
and 722,400 stock options, and it was
established that the options could be exercised
after the third year and before the sixth year of
the plan at exercise prices of €21 and €18.73
per share, respectively. On December 30, 2003,
LOGISTA hedged the possible difference between
the exercise price envisaged in the first option