2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

31 DECEMBER 2010Employment Report22.9.14. EMPLOYEE PROFIT-SHARING AND INCENTIVE PLANSProfit-sharing planAn initial profit-sharing agreement was signed on 30 December 1969as required by the French Labour Code (Code du travail), and adoptedby each of the companies in the Group.Given the Group’s diversification since then and the inter-relationshipbetween its various business activities (retailing, production,foodservice, etc.), a new group-wide profit-sharing agreement wasadopted on 16 September 1988 at the request of the trade unions,covering all the Group’s French subsidiaries (except Franprix-LeaderPrice, Monoprix and Banque du Groupe Casino).Under this agreement, all group companies established a specialprofit-sharing reserve based on their own individual results. Thesereserves were then aggregated and the total amounts distributedto all employees in proportion to their salaries, within the maximumlimit permitted by law.A new agreement was signed on 16 March 1998. There was no changeto the method of calculating and distributing the profit-sharing reserves,but the structure of the Employee Savings Plan was altered throughthe creation of several different investment funds. On 29 June 2000, asupplemental agreement was signed in order to neutralise the impacton calculation of 2000 profit-sharing (restatement of shareholders’equity) of restructuring operations carried out on 1 July 2000 butretroactive to 1 January 2000. A further supplemental agreement wassigned on 26 June 2001, which altered the method of calculating theGroup’s profit-sharing reserve. It is now computed as a function ofthe previous year’s reserve and the change in trading profit, but maynot in any event be less than the cumulated legal reserves computedon a company-by-company basis.Incentive planA new group-wide incentive plan for all French subsidiaries (exceptFranprix-Leader Price, Monoprix and Banque du Groupe Casino) hasbeen set up covering 2010, 2011 and 2012.The plan still combines a group incentive with a local incentive.The group component is calculated on the basis of consolidatedtrading profit (before incentive and profit-sharing entitlement) of thecompanies concerned less the remuneration of capital employed.80% is allocated in proportion to annual salary and 20% in proportionto length of service.The local component is a direct function of the results of each localoperating unit. It is allocated entirely in proportion to annual salaryand paid no later than 15 May each year.The aggregate group and local incentive payment may not exceed30% of the Group’s share in consolidated net profit after tax of thecompanies concerned.Profit-sharing and incentive paymentsProfit-sharing and incentive payments for the last five years are as follows (in € thousands):€ thousands Profit-sharing plan Incentive plan Total2005 21,986.8 16,217.6 38,204.42006 22,746.5 29,768.0 52,514.52007 24,317.0 26,572.3 50,889.32008 23,126.0 22,213.5 45,339.52009 20,448.4 14,474.4 35,922.8Employee stock optionsCasino introduced its first Group employee stock option plan in 1973.Since then, many plans have been implemented for officers andemployees of the Group. In 1991, for example, options to purchasenew shares were granted to the entire workforce (over 2.2 millionoptions granted to 27,375 beneficiaries), under a plan that expiredin 1997.In December 1987, all employees with managerial grade and aminimum of one year’s service were granted options to purchaseexisting shares representing 10%, 20%, 30% or 40% of their annualsalary, depending on their grade. Since then and through 2009,stock options to purchase existing or new shares based on thesame principles have been granted in December of each year to newmanagers who have completed one year’s service with the Group,and the number of options held by managers promoted to a highergrade has been adjusted.Options to purchase new sharesDetails of current stock options exercisable for new shares are givenon page 34.Options to purchase existing sharesThere were no stock options exercisable for existing shares outstandingat 31 January 2011.Registration Document 2010 | Casino Group51