APC 2009 Annual Report Download - page 213

2009 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 211
GENERAL PRESENTATION OF SCHNEIDER ELECTRIC SA
7
STOCK OPTION AND STOCK GRANT PLANS
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5. Employee profit-sharing,
stockownership
Profit-sharing plans
Most of the Group’s French companies have profi t-sharing and other profi t-based incentive plans.
The amounts allocated by Schneider Electric Industries SAS and Schneider Electric France SAS , the two largest French companies, since
2005 were as follows:
(in millions of euros) 2009 2008 2007 2006 2005
Profi t-based incentive plans and profi t-sharing plans 38.6 47.3 42.0 45.1 36.4
The “Schneider Electric” corporate
mutual fund
Schneider Electric SA has long been committed to developing
worldwide employee stock ownership. Employees who are members
of the Employee Stock Purchase Plan have an opportunity to
purchase new or existing Schneider Electric SA shares through
corporate mutual funds or directly.
The last employee share issue took place in July2009. A total of
2.5million shares were subscribed.
As of December31, 2009, employees held a total of 11,190,680
Schneider Electric SA shares through the corporate mutual funds or
directly, representing 4.26% of the capital and 6.33% of the voting
rights, taking into account double voting rights.
Voting rights attached to shares held by corporate mutual funds are
exercised by the funds’ Supervisory Boards.
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6. Stock option and stock grant plans
Stock option and stock grant plans
withperformance criteria
Grant policy
Schneider Electric uses stock options and stock grants with
performance criteria as part of its overall compensation policy.
Each year, the Management Board, with the authorisation of the
Supervisory Board, sets up a long-term plan comprising stock
options and stock grants. For US citizens or residents, the plan
includes stock appreciation rights (SARs) that match option
characteristics. The Supervisory Board authorises the plan based
on advice from the Remunerations and Appointments & Corporate
Governance Committee.
Grantees include members of Senior Management , top managers
in all countries, high-potential managers and employees who
performed exceptionally during the year.
In 2009, Schneider Electric decided to double the number of grantees
from 750 to 1,500. Grants to members of Senior Management ,
including corporate offi cers, represented 12% of the total in 2009
compared with 17% in 2006.
The annual plans are set up in December for the following fi scal year
so that grantees will be informed of stock option and stock grant
plans at the same time their bonus targets are determined. However,
because of market regulatory constraints, the 2009 plan was set up
in January2009 instead of December2008.
The following plans were set up, all of them subject to performance
criteria:
•stock option plan 31, covering 328 grantees and representing
679,000 shares;
•stock grant plan 5, covering 341 grantees (residents of France)
and representing 143,715 shares;
•stock grant plan 6, covering 722 grantees (residents of countries
other than France) and representing 212,351 shares;
•a Stock Appreciation Right plan, covering 324 grantees and
representing 654,800 shares.
The annual plan for 2010 was set up in December2009. It comprises
the following plans, all of them subject to performance criteria:
•stock option plan 33, covering 391 grantees and representing
826,343 shares;
•stock grant plan 8, covering 395 grantees (residents of France)
and representing 159,753 shares;