The plans of 22 April 2015, 20 April 201620 April 2017 were finally granted by the allocation of, respectively, 706,262 shares on 23 April 2019, 835,600 shares on 21 April 2020 and 742,276 shares on 21 April 2021.
At 31 December 2021, the performance conditions for plans in progress were deemed achieved.
The fair value of free shares is determined using the following assumptions:
| Stock subscription plans | |||||||
|---|---|---|---|---|---|---|---|
| Grant date | April 2015 | April 2016 | April 2017 | April 2018 | April 2019 | October 2020 | October 2021 |
| Risk-free rate of return | -0.02% | -0.06% | -0.35% | -0.28% | -0.25% | -0.53% | -0.60% |
| Discount for post-vesting transfer restrictions for French employees | 1.70% | n/a | n/a | n/a | n/a | n/a | n/a |
| Expected dividends | 1.52% | 1.85% | 1.82% | 1.85% | 1.58% | 1.34% | 1.11% |
| Share price | €177.10 | €168.10 | €181.75 | €191.85 | €243.80 | €288.00 | €360.00 |
| Fair value | |||||||
| ●Employees resident in France | €161.49 | €154.32 | €166.90 | €176.17 | €226.25 | €269.37 | €339.34 |
| ●Employees not resident in France | €164.50 | €154.32 | €166.90 | €176.17 | €226.25 | €269.37 | €339.34 |
The expense recorded in 2021, 2020 and 2019 amounted to €152.3 million, €120.1 million and €143.2 million, respectively.
In September 2020, Group employees had the opportunity to join a Shareholding Plan based on a traditional format with discount and matching contribution.
The subscription price was set at €223.25, representing 80% of the average share price over the 20 trading sessions prior to the decision by the Chairman and Chief Executive Officer setting the subscription period from 17 September to 2 October 2020 during which 417,966 shares were subscribed. This number does not include the subscription reserved for a Trustee under the laws of England and Wales, as part of a Share Incentive Plan established for Group employees in the UK, for which the number of shares will be finalized in June 2021.
For French employees, free shares were offered upon subscription in proportion to their personal contribution to the plan with a maximum of 4 shares offered for 10 shares subscribed.
For employees in other countries, shares were offered under a free share plan with a continued employment condition for the employee and proportionate to how much the employee contributes to the plan, with a maximum of 4 shares offered for 10 shares subscribed. The shares will be allocated to employees on 3 November 2025 provided they are still with the Group on that date.
The IFRS 2 expense measuring the benefit offered to employees is calculated with reference to the fair value of the discount offered on the non-transferable shares.
The capital was increased on 3 November 2020 by 452,967, including matching shares.
The IFRS 2 expense for free shares recognized for the 2021 financial year amounted to €2.8 million and corresponds to the cost relating to employees outside France.
The IFRS 2 expense amounted respectively to €9.7 million and €1.4 million in 2020 and 2019.
