5 _421 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE 2023 consolidated financial statements 27.2 Defined contribution plans Some companies support their employees in building up retirement savings through defined contribution plans. In 2023, the contributions paid to defined contribution plans and expensed amounted to €256 million (2022: €253 million). These plans are mainly found in the United States, Canada, the United Kingdom and France. United States The defined contribution plans in the United States include the Michelin Retirement Account Plan (MRAP) and various 401(k) plans. The 401(k) plans are voluntary and are funded by employee contributions with employer matching contributions. Canada The defined contribution plans in Canada include the Defined Contribution Plan for the Employees of Michelin North America (Canada) Inc. as well as a registered retirement savings plan (RRSP). The defined contribution plan is funded by employer contributions and optional employee contributions with employer matching. United Kingdom The main defined contribution pension plan in the United Kingdom is the Michelin Pension and Life Assurance Plan, DC Section. The plan is funded by employee and employer contributions. Employees may also make optional contributions to the plan, which will be partly matched by the Group. France There are two defined contribution pension schemes in France for the majority of employees: PERO (former Article 83) and PERCOL (former PERCO). The PERO is a mandatory retirement savings plan that is funded by contributions from employees and the employer. The PERCOL is a voluntary retirement savings plan. Employee contributions to the plan are matched by capped employer contributions. Note 28. SHARE-BASED PAYMENTS 28.1 Share grants and performance share plans Changes in the number of share grants and performance share rights are as follows: 2023 2022 Number of share grants or performance share rights outstanding Number of share grants or performance share rights outstanding At January 1 5,949,494 5,214,472 Granted 3,257,003 1,899,470 Forfeited (1,061,855) (714,388) Shares delivered (840,812) (450,060) AT DECEMBER 31 7,303,830 5,949,494 Excellence Plan In November 2023, 2,679,985 rights to performance shares were granted to Group employees and the Managers. The rights are subject to a four-year vesting period ending in November 2027 without any lock-up period. The shares will vest at the end of this period if the performance objectives are met (stock market performance, environmental performance of manufacturing operations, employee engagement rate, sales growth and ROCE). The fair value of each performance share right is estimated at €20.34. This fair value is based on the share price at the grant date, less the present value of expected dividends that will not be received by grantees during the vesting period. The estimated value of the stock market performance condition is deducted from the grant-date fair value of the performance share rights based on the probability of this condition being met. The €41 million estimated total cost of the 2023 Excellence plan will be recognized over the vesting period.
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