2010Annual Report - Schneider Electric CZ, s.r.o.

Change in the number of stock grants
CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Number of stock grants Number of existing or new Number of shares Number of shares
Plan no.
at Dec. 31, 2009 shares grants in 2010 cancelled in 2010 outstanding Dec. 31, 2010
2 2,214 (2,214) - -
3 31,115 (30,860) (255) -
4 27,740 - (697) 27,043
5 137,590 - (250) 137,340
6 208,401 - (2,888) 205,513
7 1,250 - - 1,250
8 159,753 - - 159,753
9 390,095 - (4,000) 386,095
10 - 332,762 - 332,762
11 - 580,848 - 580,848
TOTAL 958,158 880,536 (8,090) 1,830,604
For stock grants to vest, the grantee must be an employee or corporate offi cer of the Group. In addition, vesting of some stock grants is
conditional on the achievement of annual objectives based on fi nancial indicators.
21.5.1 Valuation of share-based payments
Stock option valuation
In accordance with the accounting policies described in note 1.20,
the stock option plans have been valued on the basis of an average
estimated life of between seven and ten years using the following
assumptions:
• expected volatility of between 20% and 28%, corresponding to
capped historical volatility;
• a payout rate of between 3.0% and 4.5%;
• a discount rate of between 2.9% and 4.5%, corresponding to a
risk-free rate over the life of the plans (source: Bloomberg).
Based on these assumptions, the amount recorded under “Selling, general and administrative expenses” for stock grant plans set up after
November 7, 2002 breaks down as follows:
2010 2009
Plan 26 - 2
Plan 27 - 5
Plan 28 5 6
Plan 29 1 1
Plan 30 2 -
Plan 31 2 2
Plan 32 - -
Plan 33 4 -
Valuation of stock grants
In accordance with the accounting policies described in Note 1.20,
the stock grant plans have been valued on the basis of an average
estimated life of between four and fi ve years using the following
assumptions:
14 16
• a payout rate of between 3.0% and 4.5%;
• a discount rate of between 2.4% and 4.5%, corresponding to a
risk-free rate over the life of the plans (source: Bloomberg).
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 187
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