Financial Report and Registration Document 2010 - Groupe Seb

3
CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
19.2. STOCK OPTIONS AND PERFORMANCE SHARES
19.2.1. Stock options
Information about stock option plans at 31 December 2010 is provided below:
STOCK OPTIONS
At 31 December 2010 Date Number of options**
Type of option
Option grant
date***
Option
exercise date
Option expiry
date Granted Exercised Cancelled
Outstanding
Exercise price**
(in €)
To purchase
existing shares 19/04/2002 19/04/2006 19/04/2010 417,450 396,000 21,450 0 27.88
To purchase
existing shares 17/10/2002 17/10/2006 17/10/2010 598,125 488,895 109,230 0 25.15
To purchase
existing shares 18/06/2003 18/06/2007 18/06/2011 612,150 544,824 27,730 39,596 24.24
To purchase
existing shares 18/06/2004 18/06/2008 18/06/2012 539,100 308,104 17,400 213,596 31.67
To purchase
existing shares 08/04/2005 08/04/2009 08/04/2013 554,700 376,267 20,100 158,333 28.00
To purchase
existing shares 16/06/2006 16/06/2010 16/06/2014 589,798 294,594 14,707 280,497 29.33
To purchase
existing shares 20/04/2007 20/04/2011 20/04/2015 579,150 0 8,100 571,050 44.00
To purchase
existing shares 13/05/2008 13/05/2012 13/05/2016 1,005,900 0 17,700 988,200 38.35
To purchase
existing shares 12/06/2009 12/06/2013 12/06/2017 371,300 0 1,050 370,250 28.05
To purchase
existing shares 18/06/2010 18/06/2014 18/06/2018 412,592 0 0 412,592 53.86
TOTAL* 5,680,265 2,408,684 237,467 3,034,114
* Of which, movements in 2010 412,592 1,153,549 36,452 (777,409)
Total options to purchase existing shares 5,680,265 2,408,684 237,467 3,034,114
Total options to purchase new shares 0 0 0 0
3
** The number of options and the exercise price for plans prior to 16 June 2008 were adjusted following the three-for-one stock split that took place on 16 June 2008.
*** The grant date corresponds to the date of the Board Meeting when the option grants were decided.
In accordance with IFRS 2 – Share-Based Payment, stock options are
measured at the grant date. The valuation method used is based on the
Black & Scholes option pricing model. The initial valuation is not adjusted
for any subsequent changes in value after the grant date.
The value is recognised in employee benefits expense on a straight-line basis
over the option vesting period by adjusting equity.
IFRS 2 has been applied only to stock options granted after 7 November
2002 that had not yet vested at 1 January 2005. As allowed under IFRS 2,
options granted before 7 November 2002 have not been measured or
recognised in the accounts.
The amount recognised in employee benefits expense in 2010 in respect of stock options was €5.0 million, versus €5.8 million in 2009 and €4.7 million in
2008. The assumptions used to value options under the Black & Scholes model are as follows:
2010 plan 2009 plan 2008 plan 2007 plan 2006 plan
INITIAL VALUE (IN € MILLIONS) 4.5 2.1 8.7 6.8 2.5
AMOUNT RECOGNISED IN EMPLOYEE
BENEFITS EXPENSE (IN € MILLIONS) 0.7 0.6 2.0 1.5 0.2
ASSUMPTIONS
Share price at the option grant date (in €) 53.9 29.7 37.6 44.0 29.3
Volatility 25.0% 26.0% 25.0% 30.0% 20.0%
Risk-free interest rate 3.40% 3.50% 4.50% 4.42% 3.80%
Exercise price (in €) 53.86 28.05 38.35 44.00 29.33
Life of the options (in years) (a) 5 5 5 5 5
Dividend rate 2.8% 3.0% 2.5% 2.0% 3.0%
(a) Corresponding to the average exercise period.
GROUPE SEB
FINANCIAL REPORT AND REGISTRATION DOCUMENT 2010
91