5 5.5. Share subscription or purchase options – Free shares Accounting principles In accordance with the requirements of IFRS 2 “Share-based Payment”, the value of options or free shares granted as calculated at the grant date is expensed in the income statement over the vesting period, which is generally five years for purchase options and four years for free shares. The fair value of free shares corresponds to the value of the share at the grant date, less dividends expected to be paid during the vesting period. The cost of the additional 2-year holding period applicable to French residents, for plans prior to 1  January 2016, is  determined based on the interest rate granted to the employee, considered equivalent to the rate which would be granted by a bank to a private individual customer with an average financial profile. The impact of IFRS 2 on profit for the period is booked on the Selling, general and administrative expenses item of the income statement at Group level, and is not allocated to the Divisions or geographic zones. a) Share subscription or purchase options There is no option plans in force at 31 December 2021. Data concerning all share option plans during financial years 2021, 2020 and 2019 are set out below: 31.12.2021 31.12.2020 31.12.2019 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options not exercised at begin ning of period 57,397 €83.19 524,193 €81.91 1,313,801 €78.60 Options granted - - - Options exercised -52,397 €83.19 -465,796 €81.76 -785,408 €76.43 Options expired -5,000 -1,000 -4,200 Number of options not exercise d at end of period - €- 57,397 €83.19 524,193 €81.91 Of which: number of exercisable options at end of period - €- 57,397 €83.19 524,193 €81.91 expired options at end of period - - - Weig hted average share price €364.74 €273.24 €240.28 b) Free shares The table below summarises the data on free share plans vesting after 1 January 2019. Grant date Vesting date Number of shares granted Number of shares issued/allotted Number of shares not finally vested Stock subscription plans 22.04.2015 23.04.2019 860,150 706,937 - 20.04.2016 21.04.2020 906,100 835,725 - 20.04.2017 21.04.2021 906,000 742,276 - 17.04.2018 18.04.2022 931,000 350 885,625 18.04.2019 19.04.2023 843,075 200 823,900 14.10.2020 15.10.2024 713,660 200 712,515 07.10.2021 08.10.2025 588,750 - 588,750 For the conditional grant of shares, the plan provides for a four-year vesting period after which vesting is effective and final, subject to meeting the conditions of the plan. After this vesting period, a two-year mandatory holding period applies for French residents, for plans prior to 1 January 2016, during which the shares cannot be sold. The performance conditions apply to the 7  October 2021, 14 Octo ber 2020, 18 April 2019 and 17 April 2018 plans: • for 50% of shares granted, the growth in comparable Cosmetics sales in relation to growth in net sales for a panel of competitors: • 2022, 2023 and 2024 financial years under the 2021 plan, • 2021, 2022 and 2023 financial years under the 2020 plan, • 2020, 2021 and 2022 financial years under the 2019 plan, • 2019, 2020 and 2021 financial years under the 2018 plan, • for 50% of shares granted, the increase over the same period in the Group’s consolidated operating profit. The calculation will be based on the mean of the performance in the: • 2022, 2023 and 2024 financial years under the 2021 plan, • 2021, 2022 and 2023 financial years under the 2020 plan, • 2020, 2021 and 2022 financial years under the 2019 plan, • 2019, 2020 and 2021 financial years under the 2018 plan, and will use a predefined allocation scale based on the performance percentage achieved. No performance condition applies below a block of 200 shares. L ’ ORÉAL I UNIVERS AL REGISTRATION DOCUMENT 2021 307 2021 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements