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FINANCIAL AND ACCOUNTING INFORMATION
1. 2016 Consolidated Financial Statements
227
SAINT-GOBAIN
- REGISTRATION DOCUMENT 2016
assumptions applied in 2016 and 2015:
The following table shows the main features of the standard plans, the amounts invested in the plans and the valuation
2016
2015
Plan characteristics
Date of Shareholders’ Meeting
(17th Resolution)
June 4, 2015
(16th Resolution)
June 6, 2013
Date of the Chief Executive Officer’s decision fixing the subscription price
March 21
March 23
Plan duration (in years)
5 or 10
5 or 10
Reference price (in €)
36.77
40.54
Subscription price (in €)
29.42
32.44
Discount (in %)
20.00%
20.00%
Total discount on the date of the Chief Executive Officer’s decision (in %)
(a)
21.94%
20.02%
Employee investments (in € millions)
136.9
144.4
Total number of shares subscribed
4,653,810
4,449,939
Valuation assumptions
Interest rate applicable to employees*
5.00%
5.40%
5-year risk-free interest rate
-0.15%
0.05%
Repo rate
0.50%
0.46%
Lock-up discount (in %)
(b)
22.92%
23.42%
Total cost to the Group (in %)
(a-b)
-0.98%
-3.40%
A 0.5-point decline in borrowing costs for the employee would have no impact on the 2016 share-based payment expense as calculated in accordance with IFRS 2.
*
Stock option plans
4.4.2
to certain employees.
Compagnie de Saint-Gobain has stock option plans available
date of the decision by the Board of Directors.
Saint-Gobain share over the 20 trading days preceding the
reference to the average of the opening prices for the
to obtain Saint-Gobain shares at a price set, at no discount, by
The Board of Directors grants options allowing beneficiaries
grantees forfeit these options if they leave the Group.
10 years of the grant date. Except in specified circumstances,
received may be exercised. Options must be exercised within
years vesting period. During this period, none of the options
For all of the plans, options may only be exercised after four
decision considered as subscription options.
exercise period, with any options exercised prior to such
Among the plans outstanding at December 31, 2016, plans
purchase) at the latest on the day before the start of the
that it would determine the type of option (subscription or
between 2013 and 2016, the Board of Directors has decided
2007 to 2012 offer subscription options. For plans launched
all grantees in plans awarded since 2009.
for certain grantees only. A performance condition applies for
Up to 2008, options were subject to a performance condition
calculate the 30% contribution sociale tax due by grantees
For options granted under the 2016 plan, the value used to
option granted.
employed by French companies in the Group is €4.21 per
outstanding options:
The following table presents changes in the number of
shares
€4 par value
price (in €)
Average exercise
OPTIONS OUTSTANDING
AT DECEMBER 31, 2014
16,182,839
46.04
Options granted
224,950
39.47
Options exercised
(801,840)
35.21
Options forfeited
(4,004,092)
40.18
AT DECEMBER 31, 2015
OPTIONS OUTSTANDING
11,601,857
48.69
Options granted
280,000
40.43
Options exercised
(450,082)
27.50
Options forfeited*
(4,509,448)
51.40
AT DECEMBER 31, 2016
OPTIONS OUTSTANDING
6,922,327
47.97
Including 4,306,454 options under the 2006 stock option plan that had not
*
performance condition was only partly met.
options under the 2012 stock option plan which lapsed because the related
been exercised upon expiry of the plan on November 15, 2016, and 202,994
Scholes option pricing model.
The cost of stock option plans is calculated using the Black &
The following inputs were used:
of extreme share price volatility are disregarded;
well as implied volatility from traded share options. Periods
volatility of the share price over a rolling 10-year period, as
volatility assumptions that take into account the historical