EURONEXT_Registration_Document_2017
FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements
NOTE 24 SHARE-BASED PAYMENTS
Euronext Long-Term Incentive Plan 2014 (“LTI Plan 2014”) The Restricted Stock Units (“RSUs”) granted under LTI Plan 2014 fully cliff-vested in 2017. Euronext Long-Term Incentive Plans (“LTI Plan”) 2015, 2016 and 2017 Directors and certain employees of the Group benefited from Restricted Stock Units (“RSUs”) granted by Euronext N.V. under the LTI Plans on their applicable grant dates. RSUs granted under LTI Plans cliff-vest after 3 years, subject to continued employment and a “positive EBITDA” performance condition. These equity awards are measured by reference to the grant-date market price of Euronext’s common share (“grant-date fair value”). In addition to these RSUs granted to all participants in the LTI Plans, Performance RSUs have been awarded to members of the
Managing Board and Senior Leadership team. The vesting of these Performance RSUs is subject to two performance conditions: 50% of the performance RSUs vests subject to a Total shareholder Return (“TSR”) condition; 50% of the performance RSUs vests subject to an EBITDA-based performance condition. The grant-date fair value of such performance shares was adjusted for the possible outcomes of the TSR performance condition. This has been assessed by applying a Monte Carlo simulation to model possible share prices of Euronext and its peer companies. At the end of each reporting period, the number of vesting performance shares is reconsidered based on the Group’s EBITDA performance relative to budgeted EBITDA and the total cost for the performance RSUs could be adjusted accordingly. Grant-date fair value of RSU’s granted under the LTI Plans 2015, 2016 and 2017 reflect the present value of expected dividends over the vesting period.
Movements in the number of shares granted as awards is as follows:
IN 2016
FAIR VALUE AT GRANT DATE PER SHARE (in €)
YEAR OF GRANT
1 JANUARY
31 DECEMBER 2016
PLAN
2016 GRANTED VESTED FORFEITED
LTI, no performance
2014
215,876
-
-
(27,653)
188,223
€17.30
LTI, with performance
2015
58,892
-
-
(10,577)
48,315
€48.03
LTI, no performance
2015
86,692
-
-
(8,710)
77,982
€34.23
LTI, with performance
2016
-
119,019
-
-
119,019
€35.48
LTI, no performance
2016
-
35,725
-
-
35,725
€34.70
TOTAL
361,460
154,744
-
(46,940)
469,264
IN 2017
6
FAIR VALUE AT GRANT DATE PER SHARE (in €)
YEAR OF GRANT
1 JANUARY
31 DECEMBER 2017
PLAN
2017 GRANTED VESTED FORFEITED
LTI, no performance
2014
188,223
-
(185,672)
(2,551)
-
€17.30
LTI, with performance
2015
48,315
-
-
(10,717)
37,598
€48.03
LTI, no performance
2015
77,982
-
-
(12,862)
65,120
€34.23
LTI, with performance
2016
119,019
-
-
(22,566)
96,453
€35.48
LTI, no performance
2016
35,725
-
-
-
35,725
€34.70
LTI, with performance
2017
-
88,468
-
(3,413)
85,055
€45.40
LTI, no performance
2017
-
40,713
-
-
40,713
€42.19
TOTAL
469,264
129,181
(185,672)
(52,109)
360,664
Share-based payment expenses recognised in the income statement for shares granted for all plans to directors and selected employees in 2017 amounted to €3.8 million (2016: €2.8 million), see Note 9.
Euronext has taken into consideration the fact that the employees will not receive dividends during the vesting period of three years. The fair value has been adjusted taking into account the financials loss for the participants to not receive the payment of the dividends during the vesting period.
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2017 REGISTRATION DOCUMENT
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