Financial Statements - Solvay

(20) Capital increase / redemption
As in 2007, the Solvay group reimbursed in 2008 to minority shareholders a portion of the capital of our natural carbonate
activities in the United States (EUR -12 million).
(21) Acquisition / sale of treasury shares
At the end of December 2007, Solvay S.A. held 2 638 000 treasury shares to cover the share options offered to
Group executives. At the end of 2008, the company held 2 567 568 treasury shares, which have been deducted from
consolidated shareholders’ equity.
As it has in every year since 1999, the Board of Directors renewed the share option plan offered to executive staff (around
300 persons) with a view to involving them more closely in the long-term development of the Group. The majority of
the managers in question subscribed the options offered them in 2008 with an exercise price of EUR 58.81, representing
the average stock market price of the share for the 30 days prior to the offer.
The 3-year vesting period is followed by a 5-year exercise period, at the end of which any unexercised options expire.
The settlement method is in equity.
Share options 2002 2003 2004 2005 2006 2007 2008
Number of share options granted and
still outstanding at 31/12/2007
187 000 267 200 446 900 512 100 499 100 508 800
Granted share options 522 700
Forfeitures of rights and expiries -2 000
Share options exercised -9 500 -7 400 -12 700
Number of share options at 31/12/2008 177 500 259 800 434 200 512 100 499 100 506 800 522 700
Share options exercisable at 31/12/2008 177 500 259 800 434 200 0 0 0 0
Exercise price (EUR) 63.76 65.83 82.88 97.30 109.09 96.79 58.81
Fair value of options
at measurement date (EUR)
9.60 9.50 7.25 10.12 21.20 18.68 14.95
Number of
share options
2007 2008
Weighted
average
exercise price
Number of
share options
Weighted
average
exercise price
At 1/1 2 142 200 86.78 2 421 100 90.90
Granted during the year 508 800 96.79 522 700 58.81
Forfeitures of rights and expiries during the year 0 - -2 000 96.79
Exercised during the year -229 900 65.54 -29 600 72.48
At 31/12 2 421 100 90.90 2 912 200 85.32
Exercisable at 31/12 454 200 871 500
The share options resulted in a charge in 2008 of EUR 8 million calculated by a third party according to the Monte Carlo
model and recorded in the income statement under commercial and administrative costs.
The model places a value on the options taking into account the fact that some of them will be exercised
before the option maturity.
Financial
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Solvay Global Annual Report 2008
Financial