SECTION 1 -

Employee Stock Ownership Plan
299
New Services: Pro forma Financial Statements and Notes
December, 31, 2009
In April 2007, a leveraged employee rights issue was carried out under the Employee Stock Ownership Plan, whereby for each
share purchased between June 11 and 18, 2007 the bank that partnered Accor in the issue financed an additional nine shares on
behalf of the employee. At the end of the 5‐year lock‐up period, employees will receive a cash payment equal to the average
increase in value of the Accor shares purchased with their own funds and with the financing provided by the bank.
In addition, the employees' initial investment in the shares is guaranteed by the bank.
Details of the plan are as follows:
- Reference share price: €68.61
- Employee discount: 18.9%
- Discounted subscription price: €55.64 (except in Germany where employees were not entitled to the discount but were
awarded stock warrants).
At the close of the subscription period, the Group issued 77,450 new shares purchased by employees under the plan, including
77,107 shares acquired through corporate mutual funds and 343 purchased directly.
The fair value of the New Services’ employee benefit, totaling €1 million, was recognized in full in "Employee benefits expense"
by adjusting equity, in first‐half 2007. The cost represented by the lock‐up clause, determined only for shares purchased by
employees (not for any shares financed by a bank loan) was calculated by discounting the discount over five years at a rate of
5.5% and amounted to €0.02 million. The cost of the lock‐up was measured as 5.5% of the discounted subscription price.
Note 15.3. Performance share plans granted to New Services employees
2007 Plan
On May 14, 2007, Accor granted performance shares to senior executives and certain employees, including 7,260 performance
shares granted to New Services employees.
The performance shares were subject to vesting conditions based on growth in Accor's return on capital employed (ROCE) and
profit after tax and before non‐recurring items for each of the years 2007 and 2008. Half of the shares would vest in each year if
both performance targets were met. If only one of the performance targets was met, a quarter of the shares would vest.
For all of the shares to vest, ROCE and profit after tax and before non‐recurring items would have to increase by around 10% or
more per year. If ROCE and profit after tax and before non‐recurring items increased by less than 10% (but more than 0%), the
number of vested shares would be reduced based on the ratio between the actual increase and 10%.
The shares are subject to a two‐year lock‐up.
The cost of the plan ‐ corresponding to the fair value of the performance shares granted to New Services’ employees ‐ amounted
to €0.5 million and was recognized on a straight‐line basis over the vesting period under "Employee benefits expense" with a
corresponding adjustment to equity. The fair value of the performance shares was measured as the average of the Accor share
prices for the twenty trading days preceding the grant date multiplied by the number of shares granted under the plan.
At December 31, 2007
The performance criteria were met in 2007.
At December 31, 2008
The performance criteria were only partly met in 2008. As a result, the fair value of the performance shares was recalculated and
amounted to €0.4 million at December 31, 2008.
At December 31, 2009
The vesting period expired on May 14, 2009. Based on actual Group performance in relation to the performance criteria and on
the grantees who were still on the Group's payroll as of May 14, 2009, a total of 6,092 shares vested.
The ultimate total fair value of the performance shares granted under the plan was €0.4 million.