Loreal 2011 Annual Report Download - page 163

161REGISTRATION DOCUMENT − L’ORÉAL 2011
2011 parent company Financial Statements
5
Notes to the parent company  nancial statements
NOTE17 Stock purchase and subscription options–Free shares
17.1. Stock purchase and subscription options
The table below sets out data concerning the option plans in force at December31st, 2011.
Grant date
Number of
options
Number of
options not
yet exercised
Exercise period
Exercise
priceFrom To
03.26.2002 2,500,000 1,255,550 03.27.2007 03.26.2012 81.65
09.04.2002 2,500,000 1,114,000 09.05.2007 09.04.2012 76.88
12.03.2003 2,500,000 1,333,650 12.04.2008 12.03.2013 63.02
12.03.2003 2,500,000 1,615,000 12.04.2008 12.03.2013 71.90
03.24.2004 2,000,000 773,693 03.25.2009 03.24.2014 64.69
12.01.2004 4,000,000 2,043,610 12.02.2009 12.01.2014 55.54
06.29.2005 400,000 400,000 06.30.2010 06.29.2015 60.17
11.30.2005 4,200,000 2,687,575 12.01.2010 11.30.2015 61.37
11.30.2005 1,800,000 1,182,004 12.01.2010 11.30.2015 62.94
04.25.2006 2,000,000 2,000,000 04.26.2011 04.25.2016 72.60
12.01.2006 5,500,000 5,045,750 12.02.2011 12.01.2016 78.06
11.30.2007 4,000,000 3,824,100 12.01.2012 11.30.2017 91.66
03.25.2009 3,650,000 3,590,500 03.26.2014 03.25.2019 50.11
04.27.2010 4,200,000 4,189,000 04.28.2015 04.27.2020 80.03
04.22.2011 1,470,000 1,470,000 04.23.2016 04.22.2021 83,19
All plans have a 5-year exercise period and no performance-
related conditions, except the April22nd, 2011 plan (for all
participants) and the April27th, 2010 and March25th, 2009
plans (for members of the Management Committee). The
performance conditions associated with these plans concern:
♦April22nd, 2011 plan:
− for 50% of options granted, the increase in comparable
Cosmetics revenues for the 2012, 2013, 2014 and 2015
fiscal years in relation to the growth in revenues for a
panel of competitors;
− for 50% of options granted, the increase over the same
period in the Group’s consolidated operating profit.
The calculation will be based on the arithmetic average of the
performance in2012, 2013, 2014 and 2015 fiscal years and will
use a predefined allocation scale based on the performance
percentage reached.
♦April27th, 2010 and March25th, 2009 plans:
− for 50% of options granted, the increase in comparable
Cosmetics revenues for the 2011, 2012, 2013 and 2014
fiscal years for the 2010 plan and for the 2010, 2011, 2012
and 2013 fiscal years for the 2009 plan compared to the
growth of the cosmetics market;
− for 50% of shares granted, the percentage, over the same
period, resulting from the ratio between the contribution
before advertising and promotion expenses, i.e . the
sum of operating profit and advertising and promotion
expenses, and published Cosmetics revenues.
The calculation will be based on the arithmetic average of
performance in the 2011, 2012, 2013 and 2014 fiscal years for
the 2010 plan and in the 2010, 2011, 2012 and 2013 fiscal years
for the 2009 plan, and will use a predefined allocation scale
based on the performance percentage achieved.
The share price used as the basis for calculating the 10% social
contribution for the April22nd, 2011 plan was €18.58.
17.2. Free shares
On April22nd, 2011, April27th, 2010 and March25th, 2009, the
Board of Directors decided to grant respectively 1,038,000,
450,000 and 270,000free shares.
For the conditional grant of shares, the plan provides for a 4-year
vesting period after which vesting is effective and final, subject
to meeting the conditions of the plan. After this vesting period,
a 2-year mandatory holding period applies for French residents,
during which the shares cannot be sold.