NOTE 15.4 STATUTORY THRESHOLDS
Other than the legal notiﬁcation requirements for crossing the thresholds established by French law, there is no special statutory obligation.
NOTE 15.5 STOCK OPTION PLANS
At December 31, 2014, 201 employees were the beneﬁciaries of 2,060,074 options and 37 former employees still held 61,363 options; altogether, 238 persons were beneﬁciaries of options (respectively 182, 28 and 210 at December 31, 2013). At the same date, the maximum number of shares comprising the share capital, including potential new shares liable to be issued via the exercise of existing rights qualifying for subscription to new shares was 32,450,551, made up as follows: – share capital: 30,329,114 shares; – stock options: 2,121,437 options. Each option entitles the holder to purchase one new share with a par value of €1.00 at the exercise price set by the Board of Directors on the grant date (adjusted for the effect of the public stock buyback tender offer carried out in May 2007, if applicable). If all of the options outstanding were exercised — regardless of whether the beneﬁciary’s options are vested or not yet vested — and regardless of their exercise price relative to their market price at December 31, 2014, the share capital would increase by €2,121,437, together with a total issue premium of €10,190,814. None of the parent company’s subsidiary has set up a stock option or share purchase plan. Annual option plans are granted by the Board of Directors at least twenty trading days after the dividend approved by the annual Meeting of Shareholders is made payable, or thirty to forty-ﬁve calendar dates after the Meeting if no dividend is declared, i.e. around June 10. The share exercise price is set on the date of granting of the options, at a price in no circumstances less than the average opening price of the share listed for the twenty trading sessions prior to the date of granting of options by the Board of Directors. IFRS 2 requires companies to expense the value of the beneﬁt granted to the beneﬁciaries of stock options. Fair value of stock options granted in 2014 and 2013 was measured at grant date by means of the Black & Scholes method, using the following assumptions:
2014 Exercise price (in euros) Share price on the date of allocation (in euros) Risk-free interest rate Dividend payout rate Volatility(1) Duration of options Fair value of one option (in euros)
(1) Expected volatility is calculated on the basis of the observed historical volatility of the company’s shares.
2013 6.25 5.14 1.81% 4.28% 17.60% 4 years 0.20
8.50 7.80 1.84% 2.82% 17.70% 4 years 0.64
Volatility is calculated on the basis of the observed historical volatility of the company’s share price over a time frame corresponding to the vesting period. This calculation ignores peaks resulting from exceptional events. Fair value of the options granted on June 16, 2014 amounts to €440,000. An expense of €136,000 is recognized in the 2014 ﬁnancial statements, including €72,000 in respect of the grants made in 2014, and €64,000 in respect of options granted previously. Charges for the year are recognized under personnel expenses.