Incentive Plan for Employees of the Company and its subsidiaries performance shares plan 2013 - 2017 grants for the year 2014
Notification pursuant to article 84-bis of Consob regulation no. 11971/1999
Milan (Italy), April 29, 2014 – Pursuant to art. 84-bis of Consob Regulation no. 11971/1999, the Company hereby announces that the Board of Directors of Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX) (the “Company”) approved the second grant of awards under the Performance Shares Plan 2013-2017 (the “Plan”). The Plan was approved at the Company’s ordinary stockholders meeting held on April 29, 2013.
The Plan is in the form of a stock grant plan and provides that beneficiaries will be granted the right to receive, without consideration, ordinary shares of the Company as long as certain financial targets set by the Board of Directors at the time of grant are achieved at the end of a specified three-year reference period. Specifically, over the course of the three-year reference period, consolidated “EPS” or “earnings per share” targets must be cumulatively reached, as set forth in the Group’s consolidated statements of income, equal to the net income highlighted in the financial statements divided by the average number of outstanding shares. The Plan is reserved for employees of the Company and its subsidiaries who are identified individually by the Board of Directors upon the recommendation of the Human Resources Committee.
Today the Board of Directors, upon the recommendation of the Human Resources Committee, granted to 614 beneficiaries a total of 1,004,400 rights to receive, without consideration, ordinary shares of the Company (“Units”) subject to certain aggregate Luxottica Group consolidated EPS targets being achieved for the 2014-2016 fiscal period, as determined by the Board of Directors solely for the purposes of this Plan. The beneficiaries include Company Board members, executive officers and managers and employees who are in strategic roles designated as having growth-potential for the Group.
Based on the official price of the Company’s ordinary shares on the MTA on the day of grant, the estimated cost that the Company expects to incur in connection with the 2014 grants is approximately Euro 41.2 million.
Terms of the Plan and the Units granted under the Plan are described in more detail in the Board of Directors Report for the April 29, 2013 Ordinary Stockholders Meeting and within the Information Document included in the Report, available in the Company/Governance/General Meeting/Archive section of the Company’s website www.luxottica.com.
Please note that the Human Resources Committee gave its favorable opinion, in accordance with the provisions relating to small amount transactions with related parties and the relevant Procedure approved by the Company, in connection with the grant of Units made to certain Directors and executives with strategic responsibilities employed by the Company or its subsidiaries.