APC 2010 Annual Report Download - page 254

GENERAL PRESENTATION OF SCHNEIDERELECTRICSA
7EMPLOYEE PROFIT-SHARING, STOCK OWNERSHIP
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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, were
as follows:
(in millions of euros) 2010 2009 2008 2007 2006
Profi t-based incentive plans and profi t-sharing plans 37.0 38.6 47.3 42.0 45.1
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2010. A total of
2.1million shares were subscribed.
As of December31, 2010, employees held a total of 11,170,161
Schneider Electric SA shares through the corporate mutual funds or
directly, representing 4.11% of the capital and 6.14% 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
withperformance criteria
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 which has three
components: for US citizens or residents, the plan includes options
or stock appreciation rights (SARs) that match option characteristics
and stock grants. The Supervisory Board authorises the plan based
on advice from the Remunerations and Appointments & Human
Resources Committee.
Grantees include members of Senior Management, top managers
in all countries, high-potential managers and employees who
performed exceptionally during the year.
On December2010, Schneider Electric decided to increase the total
number of grantees from 1,575 to 2,360.
Grants to members of Senior Management, including corporate
offi cers, represented 11.8% of the total in 2010 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.
The annual plan for 2011 was set up in December2010. It comprises
the following plans, all of them subject to performance criteria:
•stock grant plan10, covering 658 grantees (residents of France)
and representing 332,762shares;
2010 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC252