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Stock options
Since the stock option plan was introduced in 2002, Michelin
pursues a cautious and reasonable stock option allocation policy.
The options are granted at market price at the time of their allocation,
without any mark down. They may be exercised after four
years and as a matter of principle, Michelin is against the creation
of plans whereby the exercise price could be reviewed in
the event that the share price had fallen below its level.
By decision of the Annual Shareholders Meeting of May 14, 2004,
the Managing Partners were authorized to grant share subscrip-
Strategy • Fundamentals • Businesses • Résultats Earnings
Additional Information
tion or purchase options to Company heads at management and
top management level.
The total amount of share subscription options to be so allocated
may not be in excess of 2,000,000 shares, or 1.40% of current
issued capital. The Shareholders have moreover authorized in this
connection allocation of options to the Managing Partners, under
Supervisory Board control.
Of the 309,000 share subscription or purchase options granted
in 2004, 10,000 were allocated to each of the Managing Partners
in accordance with the authorization of the Annual Shareholders
Meeting of May 18, 2001.
Mr. Edouard Michelin Mr. René Zingraff
2004 2003 2002 2004 2003 2002
Number of options granted 10,000 15,000 15,000 10,000 15,000 15,000
Call price €40 €32.25 €44 €40 €32.25 €44
Date of 1st call May 17, 2008 May 19, 2007 May 19, 2006 May 17, 2008 May 19, 2007 May 19, 2006
Date of last call May 16, 2013 May 18, 2012 May 18, 2011 May 16, 2013 May 18, 2012 May 18, 2011
Number of options called in 2004 Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Michelin share extremes (€) 47.80 – 34.82 38.11 – 25.02 45.05 – 24.50 47.80 – 34.82 38.11 – 25.02 45.05 – 24.50
The Supervisory Board
In 2004, the following fees were paid to Supervisory Board members for their mission conducted in 2003:
Messrs Eric Bourdais de Charbonnière (Chairman): €32,500
François Grappotte : €27,000
Pierre Michelin : €22,500
Grégoire Puiseux*: €18,000
Edouard de Royère : €22,500
Benoît Potier**: €12,000
* Mr. Puiseux also collected €42,791 in connection with subsidiaries.
** Mr. Potier was appointed by the Annual Shareholders Meeting of May 16, 2003.
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