319 348
319
the discount is 15%, and the executive Directors and key
management personnel, for whom the discount is 1% on the
stock price.
The Plan therefore qualifies as "of particular relevance" within
the meaning of art. 84-bis, par. 2 of the Issuer Regulations.
A maximum number of 500,000 treasury shares have been
earmarked to serve the discounted purchases envisaged by
the Plan.
During the month of October 2013, the plan was presented
and explained to some 16,000 of the Group's employees in
27 countries. Employees had until the end of December 2013
to communicate their wish to participate in the Plan, the
amount they intended to invest in the first purchase window
and the method of payment. The amount collected in the
month of April 2014, totalling Euro 6.4 million, was used to
make purchases of the Company's ordinary shares on the
Milan Stock Exchange (MTA) over a period of 5 consecutive
business days during the month of May 2014. The number of
treasury shares allotted to each participant was determined
by taking into account the average share purchase price
(Euro 16.2629), the individual investment and the applicable
discount percentage.
All the plan's participants also received an entry bonus of
six free shares, also taken from the Company's portfolio of
treasury shares, only available at the time of first purchase.
The shares purchased by participants, as well as those
received by way of discount and entry bonus, are generally
subject to a retention period during which they cannot be sold
and the length of which varies according to local regulations.
On 9 June 2014, an additional purchase window was opened
for plan participants in the "Manager" category who had
already bought shares in the purchase window in May and
who were so entitled under the plan's regulations. Managers
opting to participate in this additional window were able
to buy an additional quantity of shares at a 25% discount.
The total of Euro 0.7 million collected in this additional
window was used to make purchases of the Company's
ordinary shares on the Milan Stock Exchange over a period of
5 consecutive business days during the month of July 2014.
The number of treasury shares allotted to each participant
was determined by taking into account the average share
purchase price (Euro 16.3585), the individual investment and
the applicable discount.
During the month of December 2014, employees were
informed of the opening of the plan's second cycle in 2015.
Employees had until the third week of February 2015 to sign
up for the second cycle and to communicate the amount they
intended to invest. The total amount collected will be used
to make purchases of the Company's shares on the Milan
Stock Exchange (MTA) during the month of July 2015.
The fair value of the options has been determined using the
Montecarlo binomial pricing model, based on the following
assumptions:
1st Window (2014)
2nd Window (2015)
3rd Window (2016)
Grant date
13 November 2013
13 November 2013
13 November 2013
Share purchase date
19 May 2014
19 May 2015
19 May 2016
End of retention period
19 May 2017
19 May 2018
19 May 2019
Residual life at grant date (in years)
-
1
2
Share price at grant date (Euro)
18
18
18
Expected volatility
29.27%
30.11%
36.79%
Risk-free interest rate
0.03%
0.05%
0.20%
Expected dividend %
2.83%
2.83%
2.83%
Option fair value at grant date (Euro)
18
18
17
A total of Euro 496 thousand in costs for the fair value of options granted under this plan have been recognised as "Personnel
costs" in the income statement for the year ended 31 December 2014.