ANNUAL REPORT 2004 - Luxottica Group

STOCK OPTIONS PLANS
At the Extraordinary Shareholders’ Meeting on March
10, 1998, shareholders approved the adoption of a
Stock Options Plan under which the value of the
Luxottica Group shares dedicated to the stock
options plan may be increased one or more times, by
a maximum amount of Lire 1,225,000,000, through
the issue of 12,250,000 ordinary shares to officers
and key employees of the Group. The conversion of
Luxottica Group’s authorized and issued share capital
into Euro, approved on June 26, 2001, resulted in a
decrease in the number of ordinary shares available
for the aforementioned Stock Options Plan.
In consideration of the reduction of the number of
ordinary shares available for the Stock Options Plan,
and the growing size of Luxottica Group resulting in a
larger number of potential employee beneficiaries of
stock options, on September 20, 2001, the
Extraordinary Shareholders’ Meeting approved a
Stock Options Plan under which the value of the
Luxottica Group shares dedicated to the stock
options plan could be increased one or more times,
by a maximum amount of Euro 660,000, through the
issue of new ordinary shares to officers and key
employees of the Group.
On September 14, 2004, Luxottica Group announced
that its majority shareholder, Leonardo Del Vecchio,
allocated 2.11%, or 9.6 million, of the shares held by
him through the holding company La Leonardo
Finanziaria S.r.l., to a stock options plan for the
Group’s top management. Options issued through
this plan will become exercisable upon the
accomplishment of certain financial objectives.
Consequently, the cost of these shares, calculated
based on the market value, will not be recorded in the
balance sheet until such a time as the number of
exercisable options is known.
SHARE BUY BACK PLANS
ANNUAL REPORT 2004
STOCK OPTIONS PLANS
AND SHARE BUY BACK PLANS
On September 25, 2002, Luxottica U.S. Holdings
Corp., a U.S. subsidiary of Luxottica Group, approved
the purchase of up to 11,500,000 Luxottica Group’s
ADS, representing an equal number of ordinary
shares, equivalent to 2.5% of Luxottica Group’s
authorized and issued share capital. This plan, now
expired, required that the purchase be carried out on
the New York Stock Exchange within 18 months of its
approval.
On March 20, 2003, Luxottica U.S. Holdings Corp.
approved the purchase of up to 10,000,000 Luxottica
Group ADS, representing an equal number of ordinary
shares, and equivalent to 2.2% of Luxottica Group’s
authorized and issued share capital, to be purchased
on the New York Stock Exchange within 18 months of
its approval. As of its expiration date, Luxottica U.S.
Holdings Corp. had acquired 6,434,786 Luxottica
Group ADS.
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