For pension and supplementary pension plans in Switzerland and the UK, sensitivity to mortality rates is calculated based on a one-year reduction in the age of each beneficiary. Applying this assumption increases the corresponding obligation by around 1%.
In some countries, and more especially in France and Spain, the Group contributes to basic state pension plans, for which the expense recognised is the amount of the contributions called by the state bodies. These state pension plans are considered as being defined contribution plans.
The amounts taken as an expense in the period in respect of defined contribution plans (other than basic state plans) totalled €691 million in 2022 (€647 million in 2021). These amounts include the contributions paid in France to the external multi-employer fund (CNPO) in respect of obligations in regard to lump sums paid on retirement to construction workers.
Provisions for other employee benefits mainly include long-service bonuses and jubilee bonuses.
At 31 December 2022, they amounted to €98 million, including €11 million for the part at less than one year (€114 million including €12 million for the part at less than one year at 31 December 2021).
Provisions for long-service bonuses and jubilee bonuses have been calculated using the following actuarial assumptions:
| 31/12/2022 | 31/12/2021 | |
|---|---|---|
| Discount rate | Discount rate 31/12/2022 3.75% |
Discount rate 31/12/2021 1.05% |
| Inflation rate | Inflation rate 31/12/2022 2.00% |
Inflation rate 31/12/2021 1.80% |
| Rate of salary increases | Rate of salary increases 31/12/2022 2.00% - 3.00% |
Rate of salary increases 31/12/2021 1.80% - 2.80% |
The measurement and recognition methods for share subscription plans, Group savings plans and performance share plans, are defined by IFRS 2 “Share-based Payment”. The granting of performance shares and offers to subscribe to Group savings plans in France and abroad represent a benefit granted to their beneficiaries and therefore constitute supplementary remuneration borne by VINCI.
Because such transactions do not give rise to monetary transactions, the benefits granted in this way are recognised as expenses in the period in which the rights are acquired, with a corresponding increase in equity. Benefits are measured by an external actuary on the basis of the fair value, at the grant date, of the equity instruments granted.
Benefits arising from awards of performance shares and Group savings plans are granted as decided by VINCI’s Board of Directors after approval at the Shareholders’ General Meeting. Since their measurement is not entirely linked to operational activity, it has been deemed appropriate not to include the corresponding expense in operating income from ordinary activities, which is an indicator of business lines’ performance, but to report it on a separate line, labelled “Share-based payment expense (IFRS 2)”, in recurring operating income.
Performance shares have been granted to certain Group employees and senior executives. Under the corresponding plans, definitive vesting of the shares is conditional on beneficiaries being employed by the Group at the end of the vesting period and on performance conditions being met.
| 31/12/2022 | 31/12/2021 | |
|---|---|---|
| Number of shares granted subject to performance conditions at beginning of period | Number of shares granted subject to performance conditions at beginning of period 31/12/2022 7,173,432 |
Number of shares granted subject to performance conditions at beginning of period 31/12/2021 7,034,538 |
| Shares granted subject to performance conditions | Shares granted subject to performance conditions 31/12/2022 2,489,710 |
Shares granted subject to performance conditions 31/12/2021 2,489,680 |
| Shares vested | Shares vested 31/12/2022 (1,826,223) |
Shares vested 31/12/2021 (1,929,768) |
| Shares cancelled | Shares cancelled 31/12/2022 (658,710) |
Shares cancelled 31/12/2021 (421,018) |
| Number of shares granted subject to performance conditions not vested at end of period | Number of shares granted subject to performance conditions not vested at end of period 31/12/2022 7,178,209 |
Number of shares granted subject to performance conditions not vested at end of period 31/12/2021 7,173,432 |
| Plan set up on 12/04/2022 | Plan set up on 08/04/2021 | Plan set up on 09/04/2020 | Plan set up on 17/04/2019 | |
|---|---|---|---|---|
| Original number of beneficiaries | Original number of beneficiaries Plan set up on 12/04/2022 4,114 |
Original number of beneficiaries Plan set up on 08/04/2021 3,960 |
Original number of beneficiaries Plan set up on 09/04/2020 3,529 |
Original number of beneficiaries Plan set up on 17/04/2019 3,271 |
| Vesting date of the shares granted | Vesting date of the shares granted Plan set up on 12/04/2022 12/04/2025 |
Vesting date of the shares granted Plan set up on 08/04/2021 08/04/2024 |
Vesting date of the shares granted Plan set up on 09/04/2020 09/04/2023 |
Vesting date of the shares granted Plan set up on 17/04/2019 17/04/2022 |
| Number of shares granted subject to performance conditions originally (*) | Number of shares granted subject to performance conditions originally (*) Plan set up on 12/04/2022 2,489,710 |
Number of shares granted subject to performance conditions originally (*) Plan set up on 08/04/2021 2,489,680 |
Number of shares granted subject to performance conditions originally (*) Plan set up on 09/04/2020 2,365,032 |
Number of shares granted subject to performance conditions originally (*) Plan set up on 17/04/2019 2,453,497 |
| Shares cancelled | Shares cancelled Plan set up on 12/04/2022 (27,830) |
Shares cancelled Plan set up on 08/04/2021 (44,160) |
Shares cancelled Plan set up on 09/04/2020 (86,278) |
Shares cancelled Plan set up on 17/04/2019 (626,264) |
| Shares vested | Shares vested Plan set up on 12/04/2022 (750) |
Shares vested Plan set up on 08/04/2021 (2,575) |
Shares vested Plan set up on 09/04/2020 (4,620) |
Shares vested Plan set up on 17/04/2019 (1,827,233) |
| Number of shares granted subject to performance conditions at end of period | Number of shares granted subject to performance conditions at end of period Plan set up on 12/04/2022 2,461,130 |
Number of shares granted subject to performance conditions at end of period Plan set up on 08/04/2021 2,442,945 |
Number of shares granted subject to performance conditions at end of period Plan set up on 09/04/2020 2,274,134 |
Number of shares granted subject to performance conditions at end of period Plan set up on 17/04/2019 – |
(*) This includes shares granted to the Chief Executive Officer under a plan set up in accordance with ordinary law and subject to the same performance conditions.
