2013 Registration document and annual financial report - page 246

Registration Document 2013
244
Financial Statemements
5
Consolidated Financial Statements And Notes
The cost of the performance share plan – corresponding to the fair
value of the share grants – amounted to €7.6 million at April 4, 2011
and was being recognized on a straight-line basis over the vesting
period under “Employee benefits expense” with a corresponding
adjustment to equity.The fair value of the share grants was measured
as the average of the Accor share prices for the twenty trading
days preceding the grant date multiplied by the number of shares
granted under the plan.
In 2011, the performance criteria were met. Plan costs recognized
in 2011 amounted to €2.5 million.
In 2012, the performance criteria were almost met. Plan costs
recognized in 2012 amounted to €3.3 million.
At December 31, 2013, plan costs recognized amounted to €1million.
2012 Plan
On March 27, 2012, Accor granted 284,976 performance shares to
senior executives and certain employees. Of these:
ƒƒ
170,332 have a two-year vesting period followed by a two-year
lock-up period and are subject to two vesting conditions;
ƒƒ
67,269 have a four-year vesting period with no subsequent lock-up
period, and are subject to two vesting conditions;
ƒƒ
47,375 have a two-year vesting period followed by a two-year
lock-up period and are subject to three vesting conditions.
The performance shares are subject to vesting conditions based
on EBIT margin, operating cash flow and disposals’ plan for each of
the years 2012 and 2013. Targets have been set for annual growth
in relation to the budget over the next two years, with interim
milestones, and a certain percentage of the shares vest each year
as each milestone is met.
The cost of the performance share plan – corresponding to the fair
value of the share grants – amounted to €7.1 million at March 27, 2012
and was being recognized on a straight-line basis over the vesting
period under “Employee benefits expense” with a corresponding
adjustment to equity. The fair value of the share grants was
measured as the Accor opening share price on the grant date less
the present value of dividends unpaid multiplied by the number of
shares granted under the plan.
In 2012, the performance criteria were almost met. Plan costs
recognized in 2012 amounted to €2.4 million.
In 2013, the performance criteria were met. Plan costs recognized
in 2013 amounted to €2.6 million.
2013 Plan
On April 15, 2013, Accor granted 290,550 performance shares to
senior executives and certain employees. Of these:
ƒƒ
169,605 have a two-year vesting period followed by a two-year
lock-up period and are subject to two vesting conditions;
ƒƒ
48,445 have a four-year vesting period with no subsequent lock-up
period, and are subject to two vesting conditions;
ƒƒ
72,500 have a two-year vesting period followed by a two-year
lock-up period and are subject to four vesting conditions.
The performance shares are subject to vesting conditions based
on EBIT margin, operating cash flow from operating activities,
disposals’ plan and an external vesting condition for each of the
years 2013 and 2014. Targets have been set for annual growth
in relation to the budget over the next two years, with interim
milestones, and a certain percentage of the shares vest each year
as each milestone is met.
The cost of the performance share plan – corresponding to the fair
value of the share grants – amounted to €6.6 million at April 15, 2013
and was being recognized on a straight-line basis over the vesting
period under “Employee benefits expense” with a corresponding
adjustment to equity. The fair value of the share grants was
measured as the Accor opening share price on the grant date less
the present value of dividends unpaid multiplied by the number of
shares granted under the plan.
In 2013, the performance criteria were almost met. Plan costs
recognized in 2013 amounted to €2.6 million.
Cost of share-based payments recognized
in the accounts
The total cost recognized in profit or loss by adjusting equity in
respect of share-based payments amounted to €13.5 million at
December 31, 2013 of which €2.7 million due to changes in the
Executive Management (December 31, 2012: €14 million).
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