The fair value of free shares is determined using the following assumptions:
| Stock subscription plans | |||||||
|---|---|---|---|---|---|---|---|
| Grant date | April 2018 | April 2019 | October 2020 | October 2021 | October 2022 | October 2023 | October 2024 |
| Risk-free rate of return | (0.28%) | (0.25%) | (0.53%) | (0.60%) | 2.24% | 3.07% | 2.51% |
| Discount for post-vesting transfer restrictions for French employees | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
| Expected dividends | 1.85% | 1.58% | 1.34% | 1.11% | 1.46% | 1.50% | 1.70% |
| Share price | €191.85 | €243.80 | €288.00 | €360.00 | €327.80 | €399.90 | €388.70 |
| Fair value | |||||||
|
Employees resident in France |
€176.17 | €226.25 | €269.37 | €339.34 | €303.33 | €371.96 | €358.49 |
|
Employees not resident in France |
€176.17 | €226.25 | €269.37 | €339.34 | €303.33 | €371.96 | €358.49 |
The expense recorded in 2024, 2023 and 2022 amounted to €204.0 million, €164.5 million and €155.3 million, respectively.
b) Capital increase reserved for employees
June 2022 plan
In June 2022, 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 €254.9, representing 80% of the average share price over the 20 trading sessions prior to the decision by the Chief Executive Officer setting the subscription period from 8 June to 22 June 2022 during which 410,943 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 was finalised in October 2023 and amounted to 3,376 shares.
For French employees, free shares were offered as matching shares upon subscription in proportion to their personal contribution to the plan with a maximum of four shares offered for ten 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 26 July 2027 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 26 July 2022 by 448,267 shares and on 12 October 2023 by 4,643, including matching shares.
The total IFRS 2 expense for free shares granted for the 2022 plan amounted to:
This cost is amortised over the vesting period and corresponds to the share reference value adjusted for the expected dividends over the vesting period, namely €286.36 per share.
The IFRS 2 expense for free shares recognised for the 2023 financial year amounted to €4 million and corresponds to the 2018, 2020 and 2022 plans.
The IFRS 2 expense amounted respectively to €2.8 million and €13.7 million in 2021 and 2022.
2024 plan
In June 2024, 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 €358.71, representing 80% of the average share price over the 20 trading sessions prior to the decision by the Chief Executive Officer setting the subscription period from 5 June to 19 June 2024 during which 199,641 shares were subscribed and 72,795 matching shares offered. 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 finalised in April 2025.
For French employees, free shares were offered upon subscription in proportion to their personal contribution to the plan with a maximum of three shares offered for six 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 three shares offered for six shares subscribed. The shares will be allocated to employees on 31 July 2029 provided they are still with the Group on that date.
The IFRS 2 expense measuring the benefit offered to employees includes an expense recognized on the subscription date based on the value of the discount granted to employees.
The capital was increased on 30 July 2024 by 230,423 shares including matching shares for French employees.
The total expense for shares granted for the 2024 plan amounted to €47 million.
This cost of matching shares for employees outside of France is amortised over the vesting period and corresponds to the share reference value adjusted for the expected dividends over the vesting period, namely €410.17 per share.
The IFRS 2 expense for the Employee shareholding plans recognised for the 2024 financial year amounts to €35.1 million.
