Annual Review 2012 - Luxottica
Annual Review 2012 - Luxottica
Annual Review 2012 - Luxottica
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Consolidated financial statements - NOTES<br />
| 173 ><br />
Beginning in April 1998, certain officers and other key employees of the Company and its<br />
subsidiaries were granted stock options of <strong>Luxottica</strong> Group S.p.A. under the Company’s<br />
stock option plans (the “plans”). In order to strengthen the loyalty of some key employees<br />
- with respect to individual targets, and in order to enhance the overall capitalization<br />
of the Company - the Company’s stockholders meetings approved three stock capital<br />
increases on March 10, 1998, September 20, 2001 and June 14, 2006, respectively,<br />
through the issuance of new common shares to be offered for subscription to employees.<br />
On the basis of these stock capital increases, the authorized share capital was equal to<br />
Euro 29,537,918.57. These options become exercisable at the end of a three year vesting<br />
period. Certain options may contain accelerated vesting terms if there is a change in<br />
ownership (as defined in the plans).<br />
34. SHARE BASED<br />
PAYMENTS<br />
The stockholders’ meeting has delegated the Board of Directors to effectively execute, in<br />
one or more installments, the stock capital increases and to grant options to employees.<br />
The Board can also:<br />
• establish the terms and conditions for the underwriting of the new shares;<br />
• request the full payment of the shares at the time of their underwriting;<br />
• identify the employees to grant the options based on appropriate criteria; and<br />
• regulate the effect of the termination of the employment relationships with the<br />
Company or its subsidiaries and the effects of the employee death on the options<br />
granted by specific provision included in the agreements entered into with the<br />
employees.<br />
Upon execution of the proxy received from the Stockholders’ Meeting, the Board of<br />
Directors has granted a total of 55,084,800 options of which, as of December 31, <strong>2012</strong>,<br />
21,057,697 have been exercised.<br />
On May 7, <strong>2012</strong>, the Board of Directors granted 687,500 options to employees domiciled<br />
in the United States with a fair value of Euro 7.85 per option as well as 1,389,000 options to<br />
employees domiciled outside the United States with a fair value of Euro 8.23.