APC 2013 Annual Report Download - page 219

CONSOLIDATED FINANCIALSTATEMENTS ATDECEMBER 31, 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Valuation of stock grants
a payout rate of between 3.0% and 4.5%;
l
a discount rate of between 1.6% and 4.5%, corresponding to a
l
In accordance with the accounting policies described in
risk-free rate over the life of the plans (source: Bloomberg).
note1.20, 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:
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:
Full year 2013 Full year 2012
Plan 5 --
Plan 6 -1
Plan 7 --
Plan 8 --
Plan 9 45
Plan 10 214
Plan 11 11 12
Plan 10 bis 0-
Plan 11 bis 0-
Plan 12 0-
Plan 13 10 11
Plan 14 910
Plan 15 12 -
Plan 15 bis 0-
Plan 16 15 -
Plan 16 bis 0-
TOTAL 63 53
21.5.2 Worldwide Employee Stock Purchase Plan
ordinary, non-revolving personal loan with a maximum maturity of
five years granted to an individual with an average credit rating.
Schneider Electric gives its employees the opportunity to become
Under the leveraged plan, employees may also purchase
group shareholders thanks to employee share issues. Employees
5
Schneider Electric shares at a 15% to20% discount from the
in countries that meet legal and fiscal requirements have the
price quoted on the stock market. However, the leveraged plan
choice between a classic and a leveraged plan.
offers a different yield profile as a third-party bank top up the
Under the classic plan, employees may purchase Schneider employee’s initial investment, essentially multiplying the amount
Electric shares at a 15% to20% discount to the price quoted for paid by the employee. The total is invested in Schneider Electric
the shares on the stock market. Employees must then hold their shares at a preferential price. The bank converts the discount
shares for five years, except in certain cases provided for by law. transferred by the employee into funds with a view to securing the
The share-based payment expense recorded in accordance with yield for the employee and increasing the indexation on a
IFRS2 is measured by reference to the fair value of the discount leveraged number (factor of 4.4 in2013) of directly subscribed
on the locked-up shares. The lock-up cost is determined on the shares.
basis of a two-step strategy that involves first selling the
As with the classic plan, and as per IFRS 2, the share-based
locked-up shares on the forward market and then purchasing the
payment expense is determined by reference to the fair value of
same number of shares on the spot market (i.e., shares that may
the discount on the locked-up shares (see above). In addition, it
be sold at any time) using a bullet loan.
includes the value of the benefit corresponding to the issuer’s
This strategy is designed to reflect the cost that, the employee involvement in the plan, which means that employees have
would incur during the lock-up period to avoid the risk of carrying access to share prices with a volatility profile adapted to
the shares subscribed under the classic plan. The borrowing cost institutional investors rather than to the prices and volatility profile
corresponds to the cost of borrowing for the employees they would have been offered if they had purchased the shares
concerned, as they are the sole potential buyers in this market. It through their retail banks. The volatility differential is treated as a
is based on the average interest rate charged by banks for an discount equivalent that reflects the opportunity gain offered to
employees under the leveraged plan.
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2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC