APC 2014 Annual Report Download - page 285

INFORMATION ON THE COMPANY AND ITS CAPITAL
PERFORMANCE SHARES AND STOCK OPTION PLANS
Performance shares 6.
andstockoptionplans
Performance shares and stock option plans Description of the shares allocated
The figures below have been calculated where necessary to take For the French plans (plans13, 13bis, 13ter, 15, 15bis, 17 and
account of the two-for-one share split, effective from September2, 17bis), the vesting and lock-up periods for stock allocations are at
2011. least two years each.
Grant policy
For international plans (plans 11, 11bis, 12, 14, 14bis, 14ter, 16,
16bis, 18 and 18bis), the vesting period for share allocations is four
years. There is no lock-up period.
As part of its overall staff pay policy, each year Schneider Electric
sets up a long-term incentive plan. This plan is based on an annual Performance shares vest only if the beneficiary is a Group
allocation of performance shares. Stock options, until employee as of the vesting date and if certain performance targets,
December2009, and, for employees who are U.S. citizens or detailed below, are met (see pages 287 and 288).
residents, stock appreciation rights (SARs) have been granted. No Since January2009, for executive directors, and since
stock options have been granted since 2009. December2011 for members of the Executive Committee,
These plans are established by the board of directors, which allocations of performance shares are fully subject to the
makes decisions based on the report from the Human Resources achievement of performance conditions.
and CSR committee.
Description of the options allocated
Beneficiaries include members of Senior Management, top
managers of the Group in all countries, high-potential managers
and employees whose performance and potential were judged The option exercise price is equal to the average closing price of
exceptional. the twenty trading days prior to the date of allocation. No discount
is applied.
Each year Schneider Electric increases the number of beneficiaries
of the annual plan. There were 2,846beneficiaries in the framework Since2006, the options have a ten year life. They may not be
of the 2013 long-term incentive plan and 3,222 in the framework of exercised until after the fourth year. However, they can be
the 2014 long-term incentive plan. exercised before maturity in the case of a takeover bid for the
company’s shares. Exceptionally, options granted under
Allocations to Group Senior Management, including executive plan25may have been exercised as from the first year. Similarly,
directors, represented 14% of the total attributions inthe U.S. citizens and residents may exercise their rights following the
framework of the 2009 plan. They are of 11.8% in the framework third year under certain plans.
of the 2014 long-term incentive plan.
Options may only be exercised by Group employees. In addition,
exercise of all or part of the options is dependent on specific
targets being met, detailed below (see page285). All of the options
granted to executive directors have been subject to performance
criteria since January2009.
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