LensCrafters 2011 Annual Report Download - page 251

| 175 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
• identify the employees to grant the options based on appropriate criteria;
• regulate the effect of the termination of the employment relationships with the
Company or its subsidiaries and the effects of the employee death on the options
granted by specific provision included in the agreements entered into with the
employees.
Upon execution of the proxy received from the Stockholders’ Meeting, the Board of
Directors has granted a total of 53,833,300 options of which, as of December 31, 2011,
16,851,677 have been exercised.
On April 28, 2011, the Board of Directors granted 715,500 options to employees domiciled
in the United States with a fair value of Euro 6.49 per option as well as 1,323,500 options to
employees domiciled outside the United States with a fair value of Euro 6.61.
On May 7, 2009, the Board of Directors authorized the reassignment of new options to
employees who were then beneficiaries of the Company’s 2006 and 2007 ordinary plans
and the Company’s 2006 performance plan, which, considering market conditions and the
financial crisis, had an exercise price that was undermining the performance incentives that
typically form the foundation of these plans. The new options’ exercise price was consistent
with the market values of Luxottica shares being equal to the greater of the stock price
on the grant date of the new options or the previous 30-day average. In connection with
the reassignment of options related to the Company’s 2006 and 2007 ordinary plans, the
employees who surrendered their options received the right to purchase the same number
of Luxottica Group ordinary shares that were subject to the options he or she previously
held for a total amount of 2,885,000 options. For the new options assigned to the US
citizen beneficiaries of the 2006 and 2007 plans, the Company recognized an incremental
fair value per share of Euro 2.16 and Euro 2.20, respectively. For the new options assigned
to the non-US citizen beneficiaries of the 2006 and 2007 plans, the Company recognized
an incremental fair value per share of Euro 2.68 and Euro 2.77, respectively.
In connection with the reassignment of options related to the Company’s 2006 performance
plan, the employees who surrendered their options received the right to purchase the
same number of Luxottica Group ordinary shares that were subject to the options he or
she previously held pursuant to the above-mentioned grant, reduced by 50 percent , for a
total amount of 5,700,000 options.