APC 2007 Annual Report Download - page 130

Plan Number of Number of existing Stocks Number of grants
no. stock grants or new shares cancelled outstanding
at Dec. 31, 2006 granted in 2007 in 2007 at Dec. 31, 2007
1 52,006 - (60) 51,946
2 - 2,214 - 2,214
3 - 66,394 - 66,394
4 - 57,250 - 57,250
Total 52,006 125,858 (60) 177,804
Change in number of stock grants:
On December 19, 2007, the Management Board set up stock option plan no. 30, granting 944,926 options to subscribe
new shares or purchase existing shares of Company stock at a price of 92.00 in principle exercisable between De-
cember 19, 2011 and December 18, 2017. For US employees, the plan awards 431,125 Stock Appreciation Rights (SARs)
at a price of 92.00, with the same vesting period and expiration date as the options in plan 30.
To exercise the options granted under plans 26, 27, 28, 29 and 30 and the SARs, the grantee must be an employee or
corporate officer of the Group. In addition, exercise of half the options is conditional on the achievement of annual ob-
jectives based on revenue and operating / EBITA margin.
In 2007, 1,820,222 new Schneider Electric SA shares were issued on the exercise of currently vested stock options.
On April 23, 2007, the Management Board made 2,214
stock grants with a vesting period of three years (from April
23, 2007 to April 23, 2010) and a lock-up period of two
years (from April 23, 2010 to April 22, 2012).
On December 19, 2007, the Management Board set up
plans no. 3 and no. 4. The first calls for the grant of 66,394
shares with a vesting period of three years (from Decem-
ber 19, 2007 to December 19, 2010) and a lock-up period
of two years (from December 19, 2010 to December 18,
2012), while the second calls for the grant of 57,250 shares
with a vesting period of four years (from December 19,
2007 to December 19, 2011) and no lock-up period.
For stock grants to vest, the grantee must be an employee
or corporate officer of the Group. In addition, vesting of half
of the stock grants is conditional on the achievement of an-
nual objectives based on revenue and operating/EBITA
margin.
Valuation of share-based payments
Stock options:
In accordance with the accounting principles described in
note 1.18, 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 25%, corre-
sponding to implicit volatility,
A payout rate between 3.0% and 4.5%,
A discount rate of between 3.1% and 4.5%, correspon-
ding to a risk-free rate over the life of the plans.
Based on these assumptions, the amount recorded under
"Selling, general and administrative expenses" for stock
option plans set up after November 7, 2002 breaks down
as follows:
2007 2006
Plan 21 0.3 2.5
Plan 24 5.0 5.6
Plan 25 --
Plan 26 6.0 6.1
Plan 27 6.2 6.6
Plan 28 6.4 -
Plan 29 0.4 -
Plan 30 --
24.3 20.8
Stock grants:
In accordance with the accounting principles described in
note 1.18, the stock grant plans have been valued on the
basis of an average estimated life of between four and five
years using the following assumptions:
Expected volatility of 25%, corresponding to implicit
volatility.
A payout rate between 3.0% and 4.5%.
A discount rate of between 3.7% and 4.5%, correspon-
ding to a risk-free rate over the life of the plans.
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:
2007 2006
Plan 1 1.2 -
Plan 2 0.0 -
Plan 3 --
Plan 4 - -
1.2 -
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