Air Canada 2008 Annual Report Download - page 122
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2008 Air Canada Annual Report
122
Range of
Exercise Prices
Expiry
Dates
2008 Outstanding Options 2008ExercisableOptions
Number
of Options
Outstanding
Weighted
Average
Remaining Life
(Years)
Weighted
Average Exercise
Price/Share
Numberof
Exercisable
Options
Weighted
Average Exercise
Price/Share
$ 21.00 2013 1,207,577 5 $ 21.00 301,894 $ 21.00
$ 11.08 - $ 18.60 2014 482,870 6 14.74 60.359 14.74
$ 8.51 2015 11,000 7 8.51 - -
1,701,447 $ 19.14 362,253 $ 19.96
Range of
Exercise Prices
Expiry
Dates
2007 Outstanding Options 2007ExercisableOptions
Number
of Options
Outstanding
Weighted
Average
Remaining Life
(Years)
Weighted
Average Exercise
Price/Share
Numberof
Exercisable
Options
Weighted
Average Exercise
Price/Share
$ 21.00 2013 1,237,222 6 $ 21.00 154,653 $ 21.00
$ 11.08 - $ 18.60 2014 482.870 7 14.74 - -
1,720,092 $ 19.24 154,653 $ 21.00
Performance Share Units
The Long-term Incentive Plan also includes Performance Share Units (“PSUs”). The value of the PSUs is based on the fair
market value of the shares at the time of the grant and is accounted for as an equity settled instrument. The vesting term
of PSUs is three years, generally commencing on January 1 of the year following granting, and incorporate performance
vesting features based upon achieving the average Earnings Per Share target established over the vesting period. Subject to
vesting and other conditions, each PSU shall entitle the employee to receive a payment in the form of one common share,
cash in the amount equal to market value of one common share, or a combination thereof, at the discretion of the Board of
Directors. The terms of the plan specify that upon the retirement of an employee, the number of PSUs that vest are prorated
based on the total number of completed months of active service during the PSU vesting term.
The number of PSUs granted to employees and the related compensation expense were as follows:
2008 2007
Compensation expense (recovery) ($ millions) $ (2) $ 2
Number of PSUs granted 1,125,092 232,760
Weighted average fair value per PSU granted ($) $ 5.22 $ 16.46
Aggregate fair value of PSUs granted ($ millions) $ 6 $ 4
During the year 5,275 PSUs were forfeited (2007 – 27,314).
During 2008, previously recorded stock based compensation expense, related to PSUs, of $2 was reversed as management
has determined that the performance vesting criteria will not be met.
Employee Share Purchase Plans
Employee share purchase plans have been established for shares of Air Canada under which eligible employees are allowed
to invest up to 6% of their base salary for the purchase of shares on the secondary market. Air Canada will match 33.3% of
the investments made by the employee. During 2008, the Corporation recorded compensation expense of $1 (2007 - $1).