financial report and registration document 2011 - Groupe SEB

5 Notes
Consolidated fi nancial statements
to the consolidated fi nancial statements
The amount recognised in employee benefi ts expense in 2011 in respect of stock options was €3.9 million, versus €5.0 million in 2010 and €5.8 million in
2009. The assumptions used to estimate options under the Black & Scholes model were as follows:
2010 plan 2009 plan 2008 plan 2007 plan
INITIAL VALUE (in € millions)
AMOUNT RECOGNISED IN EMPLOYEE
4.5 2.1 8.7 6.8
BENEFITS EXPENSE (in € millions)
Assumptions
1.2 0.5 1.8 0.4
Share price at the option grant date (in €) 53.9 29.7 37.6 44.0
Volatility 25.0% 26.0% 25.0% 30.0%
Five-year risk-free interest rate 3.40% 3.50% 4.50% 4.42%
Exercise price (in €) 53.86 28.05 38.35 44.00
Life of the options (in years) (a) 5 5 5 5
Dividend rate 2.8% 3.0% 2.5% 2.0%
(a) Corresponding to the average exercise period.
19.2.2. Performance shares
In 2009 and 2010, the Board of Directors granted performance shares to
certain employees and corporate offi cers.
Further information on the performance share plans is provided in the table below:
Shares granted under the plan are subject to a two-year vesting period and
certain performance obligations. The performance targets concern growth
in revenue and operating result from activity (formerly “operating margin”)
and are the same as those used to determine senior management bonuses.
Vested shares are subject to a two-year lock-up.
At 31 December 2011 Date Number of shares
Type of plan Grant date* Vesting date
End of
lock-up Granted Vested Cancelled
Outstanding
Share price at
grant date**
Performance shares 12/06/2009 12/06/2011 12/06/2013 50,472 49,571 901 0 30.08
Performance shares 18/06/2010 18/06/2012 18/06/2014 58,363 0 0 58,363 55.00
* The grant date corresponds to the date of the Board Meeting when the performance share grants were decided.
** Opening price on the day of the Board of Directors’ Meeting.
The fair value of performance shares includes a discount to refl ect the impact
of the lock-up period. The measurement method used to determine this
discount is based on a strategy that consists of selling the shares under
a four-year forward contract (corresponding to the vesting/lock-up period)
The main assumptions used to determine the fair value of performance shares were as follows:
ASSUMPTIONS
and immediately purchasing an equivalent number of shares free of any
restrictions, with the purchase fi nanced by debt repayable at the end of the
lock-up using the proceeds from the forward sale and dividends received
during the lock-up period.
2010 plan 2009 plan
Share price on the grant date (in €) 55.00 30.80
Four-year risk-free interest rate 3.28% 2.50%
Average interest rate on a four-year general purpose loan 6.88% 6.90%
Dividend rate 2.36% 3.28%
INITIAL VALUE (in € millions) 2.7 1.2
COST RECOGNISED IN EMPLOYEE BENEFITS EXPENSE IN 2011 (in € millions) 1.0 0.2
110 GROUPE SEB Financial Report and Registration Document 2011