BP 2005 Annual Report Download - page 102

100 Making energy more
Notes on financial statements continued
45 Share-based payments continued
LTPP – LTPP – EDIP – EDIP –
Shares granted in 2004 SHRAM EPS/ROACE SHRAM EPS/ROACE RSP
Number of equity instruments granted (million) 6.8 4.1 0.9 0.5 0.1
Weighted average fair value $4.06 $7.21 $4.06 $7.21 $8.12
Fair value measurement basis Monte Market Monte Market Market
Carlo value Carlo value value
LTPP – LTPP – EDIP – EDIP –
Shares granted in 2003 SHRAM EPS/ROACE SHRAM EPS/ROACE RSP
Number of equity instruments granted (million) 6.8 4.1 1.1 0.6 0.1
Weighted average fair value $3.53 $5.65 $3.53 $5.65 $6.43
Fair value measurement basis Monte Market Monte Market Market
Carlo value Carlo value value
The group used a Monte Carlo simulation to fair value the SHRAM element of the 2003 and 2004 LTPP and EDIP plans. In accordance with the
rules of the plans, the model simulates BP’s SHRAM and compares it with the comparator companies (all companies in the FTSE All World Oil
& Gas Index) over the three-year period of the plans. The SHRAMs of the comparator companies have been determined from market data over
the preceding three-year period. The model takes into account the historic dividend yields, share price volatilities and covariances of BP and each
comparator company to produce a predicted distribution of relative share performance. This is applied to the reward criteria to give an expected
value of the SHRAM element.
Accounting expense does not necessarily represent the actual value of share-based payments made to recipients which are determined by the
Remuneration Committee according to established criteria.
46 Employee costs and numbers $ million
Employee costs 2005 2004 2003
Wages and salaries 8,695 7,922 7,142
Social security costs 754 667 622
Share-based payments 368 325 293
Pension and other post-retirement benefit costs 929 1,051 582
10,746 9,965 8,639
Innovene operations (892) (898) (882)
9,854 9,067 7,757
Number of employees at 31 December 2005 2004 2003
Exploration and Production 17,000 15,600 15,100
Refining and Marketinga70,800 69,800 69,000
Gas, Power and Renewables 4,100 4,000 3,800
Other businesses and corporate 4,300 13,500 15,800
96,200 102,900 103,700
By geographical area
UK 16,500 17,500 17,100
Rest of Europe 21,300 25,900 25,300
USA 34,400 36,900 39,100
Rest of World 24,000 22,600 22,200
96,200 102,900 103,700
aIncludes 27,800 (2004 27,900 and 2003 27,000) service station staff.
2005 2004
Average number Rest of Rest of Rest of Rest of
of employees UK Europe USA World Total UK Europe USA World Total
Exploration and Production 3,000 600 5,300 7,300 16,200 2,900 700 4,900 6,900 15,400
Refining and Marketing 11,100 19,700 26,200 14,000 71,000 10,300 19,200 27,200 12,900 69,600
Gas, Power and Renewables 200 800 1,500 1,400 3,900 200 800 1,400 1,600 4,000
Other businesses
and corporate 3,800 3,900 3,600 300 11,600 3,700 4,800 5,700 1,000 15,200
18,100 25,000 36,600 23,000 102,700 17,100 25,500 39,200 22,400 104,200
2003
Rest of Rest of
Average number of employees UK Europe USA World Total
Exploration and Production 3,200 700 5,000 6,900 15,800
Refining and Marketing 10,100 20,600 28,300 12,700 71,700
Gas, Power and Renewables 200 900 1,500 1,600 4,200
Other businesses and corporate 3,700 4,900 6,300 1,500 16,400
17,200 27,100 41,100 22,700 108,100