form a significant part of compensation and that the issue
of new shares to meet the obligations under stock option
plans results in dilution. For this reason, Richemont has
implemented a series of buy-back programmes since 1999
to acquire `A' units to meet the obligations arising under its
unit-based compensation schemes. By using its own capital
to acquire these units, Richemont has effectively always
reflected the financing cost of the unit-based compensation
schemes in the income statement. In addition, since 2004,
Richemont has purchased over-the-counter call options
with a third party to purchase treasury units at the same
strike price as the unit options granted to executives.
These call options, together with the units held, provide a
comprehensive hedge of the Group's anticipated obligations
arising under its unit option scheme.
in the issue of new capital and, in consequence, there will
be no dilution of current unitholders' interests.
Group recognises in its financial statements an operating
expense in respect of the fair value of options granted to
executives. The aggregate charge in respect of each option
grant is amortised over the vesting period of the award.
Further details are given in note 32 to the consolidated
financial statements on page 110 of this report. For
the year under review the IFRS 2 charge amounted
to
long-term unit-based compensation scheme have been
amended to permit executives not only to exercise but
also to trade options once they have vested.
date of 30 June 2007. Options are not cancelled as a consequence of the holder's retirement.
of the management board under the plan at 31 March
2008 are shown in the table below.
As at 31 March 2008, there were no loans or other credits
outstanding to any current or former executive or non-
executive director. The Group's policy is not to extend
loans to directors. There were also no non-business related
loans or credits granted to relatives of any executive or
non-executive director.
meetings of shareholders and participation certificate
holders are given above in section 2 of the corporate
governance report under the heading `Capital Structure'.
Trading Act (`SESTA'), Compagnie Financière Richemont
SA has not elected to `opt out' or `opt up' in respect of the
provisions relating to the obligations for an acquirer of
a significant shareholding to make a compulsory offer to
all unitholders. In accordance with the Act, any party that
would directly or indirectly or acting in concert with third
parties acquire more than 33
offer to acquire all of the listed equity securities of the
Company. The interest of Compagnie Financière Rupert
in 100 per cent of the `B' registered shares in the Company,
which existed at the date SESTA came into force, does
not trigger any obligation in this respect. As noted above,
Compagnie Financière Rupert controls 50 per cent of the
voting rights at the level of Compagnie Financière
Richemont SA.