LEGRAND / 2018 Registration document

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SHARE OWNERSHIP

STOCK OPTION PLANS

7.2 – STOCK OPTION PLANS

Table 8 – Stock option awards No stock option plans have been implemented since the 2010 Plan. The following stock option plans were approved by the Company’s Board of Directors in previous years:

2008 Plan

2009 Plan

2010 Plan

Date approved by shareholders

05/15/2007

05/15/2007

05/15/2007

Grant date

03/05/2008

03/04/2009

03/04/2010

1,192,949 (1)

3,283,257 (1)

Total number of options granted

2,024,675 (1)

o/w to executive officers

142,738 (1)

95,459 (1)

222,807 (1)

W Gilles Schnepp

72,824 (1)

48,711 (1)

137,537 (1)

W Olivier Bazil

69,914 (1)

46,748 (1)

85,270 (1)

Start of exercise period

03/06/2012

03/05/2013

03/05/2014

End of exercise period

03/05/2018

03/04/2019

03/04/2020

€20.21 (1) Average closing price over the 20 trading days preceding the grant date

€12.82 (1) Average closing price over the 20 trading days preceding the grant date

€21.32 (1) Average closing price over the 20 trading days preceding the grant date

Exercise price

Exercise terms (plans comprising several tranches)

(2)(3)

(2)(3)

(2)(3)

Number of shares subscribed as of December 31, 2018

(1,880,609)

(992,360)

(2,341,653)

Number of options cancelled or forfeited

(144,066)

(108,813)

(240,817)

Stock options outstanding as of December 31, 2018

0

91,776

700,787

(1) Given the dividend payment arrangements approved in the Shareholders’ General Meetings of May 29, 2015, May 27, 2016, May 31, 2017, May 30, 2018, the number and exercise price of stock options was adjusted to take into account the impact of these transactions on the interests of stock option beneficiaries, in accordance with article L. 228-99 of the French Commercial Code. (2) Options vest after a maximum of four years, except in the event of resignation or termination for willful misconduct. (3) All these plans were subject to performance conditions. For more details, see Note 12 to the consolidated financial statements for the year ended December 31, 2014.

The weighted average market price of the Company’s shares upon exercise of stock options in 2018 was €62.92. If all these options were to be exercised (i.e. 792,563 options), the Company’s capital would be diluted at most by 0.3% (which is a maximum dilution as it does not take into account the exercise price of these options) as of December 31, 2018.

The cost of stock options is measured at the fair value of the award on the grant date, using the Black & Scholes option pricing model or the binomial model. Stock options granted under all of these plans are considered as having a five-year life.

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LEGRAND

REGISTRATION DOCUMENT 2018