Registration Document

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Consolidated information
Notes to the Consolidated Financial Statements
4.23 Share-based payment
The Sodexo Board of Directors has granted payment
to employees in the form of Sodexo shares under a
number of stock option plans.
4.23.1 Principal features of stock option
plans
Rules governing stock option plans are as follows:
• stock options are generally granted at the same
time of the year and their exercise price has no
discount;
• contractual life of options: 6-7 years;
• vesting of options is conditional on employment
by the Group and, for plans after 2007, on
attainment of a specified level of Group net
income over a period of three years. However, this
performance condition applies only to a portion
(varying between 0 and 50%) of the stock options
granted to each beneficiary, with the exception of
the Chief Executive Officer, whose entire grant is
Sodexo Registration Document Fiscal 2011
conditional on performance, with the remaining
options vesting in equal tranches over a period
of four years.
On November 8, 2010, the Board of Directors noted
that the performance condition provided for in the
regulations governing the 2008 stock option plans
and requiring attainment of a specified level of Group
net income as of August 31, 2010 had not been met,
and accordingly, confirmed the cancellation of all
options subject to this condition.
4.23.2 Measurement model applied
and assumptions used
Estimation of fair value at date of grant
The fair value of options granted and settled by
delivery of equity instruments is estimated at the
date of grant using a binomial model, which takes
into consideration the terms and conditions of grant
and assumptions about exercise behavior.
In addition to the exercise price of the stock option plans described in note 4.23.3, the table below shows the
data used in the valuation model for each plan measured under IFRS 2.
date of grant
expected
volatility (%)
Contractual
life (years)
Risk-free
interest rate
(%)
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expected
dividend yield
(%)
expected life
(years)
January 18, 2005 33.57% 6 3.35% 3.18% 5
June 16, 2005 32.20% 6 3.33% 4.10% 5
January 10, 2006 31.64% 6 3.33% 3.03% 5
January 17, 2007 29.42% 6 4.18% 2.81% 5
January 17, 2007 29.42% 7 4.18% 2.81% 5
April 24, 2007 28.23% 6 4.37% 2.79% 5
April 24, 2007 28.23% 7 4.37% 2.79% 5
September 11, 2007 28.54% 6 4.04% 2.75% 5
January 7, 2008 28.85% 7 4.01% 2.75% 6
January 7, 2008 28.85% 6 3.95% 2.75% 5
September 9, 2008 29.48% 7 4.15% 2.75% 6
September 9, 2008 29.48% 6 4.11% 2.75% 5
January 19, 2009 37.16% 7 3.28% 3.00% 6
January 19, 2009 37.16% 6 2.90% 3.00% 5
January 11, 2010 28.50% 7 2.97% 3.00% 6
January 11, 2010 28.50% 6 2.45% 3.00% 5
December 13, 2010 25.00% 7 3.27% 3.00% 6
December 13, 2010 25.00% 6 2.63% 3.00% 5