2011 Annual Report - Italcementi Group

2011 Annual Report
Presentation 4
General information 15
Annual Report Consolidated Annual Report Directors’ report 28
Extraordinary session Italcementi S.p.A. Annual Report Consolidated financial statements 63
With reference to the stock option plan granted on June 4, 2008, for senior managers, the Board of Directors
meeting of March 4, 2011, assessed the performance targets assigned at inception, which provided for a
maximum grant of 2,000,000 options. Based on targets achieved, the Board granted a total of 1,564,750
options; the difference with respect to the maximum number of 2,000,000 generated a reduction in the plan
value of 1,709 thousand euro, with a net gain of 611 thousand euro on the 2011 income statement.
The grant date is the date of the Board of Directors’ meeting that approved the stock option plan.
The average residual life of unexercised options is approximately 2 years and 7 months.
The number and average exercise price of Italcementi S.p.A. options in the periods in question are set out
below:
2011 2010
number of options average subscription
price
number of options average subscription
price
Unexercised options at beginning of year 5,230,216 € 15.447 6,280,216 € 16.828
Granted during year
Cancelled during year * (435,250) (1,050,000)
Exercised during year
Expired during year
Unexercised options at end of year 4,794,966 € 15.637 5,230,216 € 15.447
Vested options at end of year 4,794,966 2,606,916
* in 2011, a lower number of options granted on the June 4, 2008 plan; in 2010, waiver of grant
The average ordinary share price in financial year 2011 was 5.9 euro (7.2 euro in 2010).
The option exercise price at December 31, 2011, was between 8.627 euro and 23.049 euro.
Only options granted after November 7, 2002, that had not vested at December 31, 2003, were measured and
recognized at the date of transition to the IFRS.
The following table sets out the details of all Group stock option plans and their cost, carried under “employee
expense”:
(in thousands of euro)
Grant date
Company
No. options
granted
Vesting period
Employee expense
2011 2010
March 7, 2007 Italcementi S.p.A. 1,020,200 3 years - 350
March 23, 2007 Ciments Français S.A. 166,400 3 years - 477
June 20, 2007 Italcementi S.p.A. 701,250 3 years - (1,407)
March 26, 2008 Italcementi S.p.A. 623,300 3 years 120 555
April 14, 2008 Ciments Français S.A. 152,900 3 years 308 1,080
June 4, 2008 Italcementi S.p.A. 1,564,750 3 years (611) 2,620
Total 4,228,800 (183) 3,675
Stock option plan fair value at the grant date is estimated using a binomial model that takes dividends into
account. The total option term is ten years. Volatility projections assume that past volatility, determined as the
annual average for the past period net of extraordinary events, is indicative of future trends.
No other stock option plan feature is taken into consideration when measuring fair value.
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