sain t-gobain annu al report 2008 annual report

Since the November 2007 plan, all stock options are subject
to a four-year vesting period. Under earlier plans, the vesting
period was three years for non-residents and four years
for residents. Options must be exercised within ten years
of the date of grant. All rights to options are forfeited if the
holder leaves the Group, unless expressly agreed otherwise
by both the Chairman of Compagnie de Saint-Gobain
and the Appointments Committee of the Board of Directors.
All options granted between 1999 and 2002 were exercisable
for existing shares, while those granted between 2003 and
2007 were exercisable for new shares. For the November 20,
2008 plan, the origin of the shares will be determined at the
latest at the end of the four-year vesting period. If an option
holder were to die or any of the events provided for in the
General Tax Code were to occur during the four-year vesting
period, only options exercisable for new shares would vest.
For options granted under the November 20, 2008 plan, the
value used to calculate the 10% contribution sociale tax due by
grantees employed by French companies in the Group
is €6.10 per option.
Movements relating to stock options outstanding in 2006,
2007 and 2008 are summarized below:
€4 par value Average
shares exercise price
(in €)
Options outstanding
at December 31, 2005 21,738,119 38.06
Options granted 4,025,800 58.08
Options exercised (3,974,551) 34.79
Options forfeited (241,400) 40.26
Options outstanding
at December 31, 2006 21,547,968 42.38
Options granted 3,673,000 71.56
Options exercised (3,178,885) 33.04
Options forfeited (50,000) 58.10
Options outstanding
at December 31, 2007 21,992,083 48.56
Options granted 3,551,900 28.62
Options exercised (198,376) 33.33
Options not granted
under the 2007 plan (50,000) 71.56
Options outstanding
at December 31, 2008 25,295,607 45.84
At December 31, 2008, 12,127,557 options were exercisable
at an average exercise price of €39.21.
The following table presents information about stock options outstanding at December 31, 2008:
Grant Exercisable options Options not yet exercisable Total options Type
date outstanding of options
Exercice Number Weighted Exercise Number Number
price of options average price of options of options
(in €) contractual (in €)
life (in months)
1999 40.63 324,124 11 - - 324,124 Purchase
2000 37.72 865,760 23 - - 865,760 Purchase
2001 40.22 1,708,804 35 - - 1,708,804 Purchase
2002 23.53 1,183,825 47 - - 1,183,825 Purchase
2003 35.67 2,675,491 59 - - 2,675,491 Subscription
2004 43.56 3,630,853 71 43.56 - 3,630,853 Subscription
2005 45.71 1,738,700 83 45.71 2,018,550 3,757,250 Subscription
2006 58.08 - 95 58.08 3,974,600 3,974,600 Subscription
2007 71.56 - 107 71.56 3,623,000 3,623,000 Subscription
2008 28.62 – 119 28.62 3,551,900 3,551,900 See Note 9.3
above
Total – 12,127,557 – – 13,168,050 25,295,607 –
Following the four-for-one stock split of June 27, 2002, the number of options under the 1999, 2000 and 2001 plans has been
multiplied by four in order to permit meaningful year-on-year comparisons.
NOTES THE PARENT COMPANY FINANCIAL STATMENTS
199
Saint-Gobain – Financial Report 2008