Airbus 2015 Annual Report Download - page 236

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 54 l
Notes to the IFRSConsolidatedFinancialStatements
2.6 Employees Costs and Benefits
Besides the equity settled SOP that have been granted in
the past, the Group offers its employees under the employee
share ownership plan (“ESOP”), which is an additional equity
settled share-based payment plan, AirbusGroup shares at
fair value matched with a number of free shares based on a
determining ratio. The fair value of shares provided is reflected
as personnel expense in the Group’s Consolidated Income
Statements with a corresponding increase in equity.
30.1 Stock Option Plans (“SOP”) and Long-Term
Incentive Plan (“LTIP”)
Based on the authorisation given to it by the Shareholders’
meetings, the Group’s Board of Directors approved SOPs in
2006 and 2005 (see dates below). These plans provide to the
members of the Executive Committee as well as to the Group’s
senior management the grant of options for the purchase of
the Group’s shares.
For all of the Group’s SOPs, the granted exercise price exceeded
the share price at the grant date.
In 2015, 2014, 2013, 2012, 2011 and 2010, the Board of Directors
of the Company approved the granting of LTIP Performance
and Restricted Units.
In 2014, the Group decided to hedge the share price risk inherent
in the cash-settled LTIP units by entering in equity swaps where
the reference price is based on the AirbusGroup share price. To
the extent that LTIP units are hedged, compensation expense
recognised for these units will effectively reflect the reference
price fixed under the equity swaps.
In 2015, compensation expense for LTIPs including the
effect of the equity swaps amounted to € 175million (in 2014:
€ 156million). For the SOPs, expenses were neither recognised
in 2015 nor in 2014.
The fair value of units granted per vesting date is as follows (LTIP plan 2015):
Expected vesting date FV of Restricted and Performance Units to be settled in cash
(In € per unit granted)
July2019 56.92
July2020 53.90
As of 31December 2015 provisions of € 320million (2014: € 314million) relating to LTIP have been recognised.
The lifetime of the Performance and Restricted Units is contractually fixed (see the description of the respective tranche). The
measurement is next to other market data, mainly affected by the share price as of the end of the reporting period (€ 62.00 as of
31December 2015) and the lifetime of the units.
The principal characteristics of the SOPs as at 31December 2015 are summarised in the table below:
SOP 2005 SOP 2006
Date of Shareholders’ meeting 11May 2005 4May 2006
Grant date 9December 2005 18December 2006
Number of options granted 7,981,760 1,747, 5 0 0
Number of options outstanding 0264,500
Total number of eligible employees 1,608 221
Vesting conditions(1)
50% of options may be exercised after a period of two years
from the date of grant of the options; 50% of options may be exercised
as of the third anniversary of the date of grant of the options
(subject to specific provisions contained in the Insider Trading Rules
— see “Part 2/3.1.3 Governing Law — Dutch Regulations”)
Expiry date 8December 2015 16December 2016
Conversion right One option for one share
Vested 100% 100%
Exercise price € 33.91 € 25.65
Exercise price conditions 110% of fair market value of the shares at the date of grant
Number of exercised options 5,205,471 1,276,500
(1) As regards the SOP 2005, part of the options granted to the Group’s top Executives were performance related.
Financial Statements 2015
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QRegistration Document 2015
Annual Report 2015 Financial Statements 2015