BP 2014 Annual Report Download - page 89

Corporate governance
Performance shares (audited)
Share element interests Interests vested in 2014 and 2015
Performance
period
Date of award of
performance shares
Potential maximum performance sharesaNumber of
ordinary
shares
vested Vesting date
£
Face value
of the award
At 1 Jan
2014
Awarded
2014
At 31 Dec
2014
Awarded
2015
Bob Dudleyb2011-2013 09 Mar 2011 1,330,332 – – – 702,582c15 May 2014d–
2012-2014 08 Mar 2012 1,34 3,712 – 1,343,712 – 941,286cMarch 2015 –
2013-2015e11 Feb 2013 1,38 4,026 – 1,384,026 – – – 6,297,318
2014-2016e12 Feb 2014 – 1,304,922 1,304,922 – – – 6,354,970
2015-2017e11 Feb 2015–––1,501,770––6,697,894
Dr Brian Gilvary 2011-2013f14 Mar 2011 67,500 – – – 76,726c9 Jan 2014 –
2011-2013g14 Mar 2011 22,500 – – – 25,824c6 Feb 2014 –
2012-2014 08 Mar 2012 624,434 – 624,434 – 445,912cMarch 2015 –
2013-2015e11 Feb 2013 637,413 – 637,413 – – – 2,900,229
2014-2016e12 Feb 2014 – 605,544 605,544 – – – 2,948,999
2015-2017e11 Feb 2015–––685,246––3,056,197
Former executive directors
Iain Conn 2011-2013 09 Mar 2011 623,025 – – – 335,452c15 May 2014d–
2012-2014 08 Mar 2012 660,633 – 660,633 – 471,761cMarch 2015 –
2013-2015e11 Feb 2013 694,688 – 463,126h–––2,107,223
2014-2016e12 Feb 2014 – 660,128 220,043h– – – 1,071,609
Dr Byron Groteb2011-2013 09 Mar 2011 654,498 – – – 345,654c15 May 2014d–
2012-2014 08 Mar 2012 414,468 – 414,468h–290,346
cMarch 2015 –
2013-2015e11 Feb 2013 142,278 – 142,278h–––647,365
a For awards under the 2011-2013 plan, performance conditions are measured 50% on TSR against ExxonMobil, Shell, Total and Chevron; 20% on reserves replacement against the same peer group;
and 30% against a balanced scorecard of strategic imperatives. For awards under the 2012-2014, 2013-2015 and 2014-2016 plans, performance conditions are measured one third on TSR against
ExxonMobil, Shell, Total and Chevron; one third on operating cash flow; and one third on a balanced scorecard of strategic imperatives. Each performance period ends on 31 December of the third
year. There is no identified overall minimum vesting threshold level but to comply with UK regulations a value of 30%, which is conditional on the TSR, reserves replacement ratio and one of the
strategic imperatives reaching the minimum threshold, has been calculated.
b Bob Dudley and Dr Byron Grote received awards in the form of ADSs. The above numbers reflect calculated equivalents in ordinary shares. One ADS is equivalent to six ordinary shares.
c Represents vestings of shares made at the end of the relevant performance period based on performance achieved under rules of the plan and includes reinvested dividends on the shares vested.
The market price of each share at the vesting date of 9 January 2014 was £4.97, at 6 February 2014 was £4.77 and 15 May 2014 was £5.03 and for ADSs was $50.90. For the assumed vestings
dated March 2015 a price of £4.27 per ordinary share and $40.74 per ADS has been used. These are the average prices from the fourth quarter of 2014.
d The 2011-2013 award vested on 15 May 2014 with an additional vesting of accrued notional dividends on 24 June 2014 on which the market price of each share was £5.24 and for ADSs was $52.84.
For Byron Grote this resulted in an increase in value at vesting of $708,913 and for Bob Dudley and lain Conn details can be found in the single figure table on page 75.
e The market price at closing of ordinary shares on 11 February 2013 was £4.55 and for ADSs was $43.01, on 12 February 2014 was £4.87 and for ADSs was $48.38, and on 11 February 2015 was
£4.46 and for ADSs was $40.35.
f Dr Brian Gilvary was conditionally awarded shares under the Executive Performance Plan prior to his appointment as a director. The vesting of these shares is not subject to further performance
conditions.
g Dr Brian Gilvary was conditionally awarded shares under the Competitive Performance Plan prior to his appointment as a director. The vesting of these shares is subject to performance conditions.
h Potential maximum of performance shares element has been pro-rated to reflect actual service during the performance period and these figures have been used to calculate the face value.
Share interests in share option plans (audited)
Option type At 1 Jan 2014 Granted Exercised At 31 Dec 2014 Option price
Market price at
date of exercise
Date from which
first exercisable Expiry date
Dr Brian Gilvary BP 2011 500,000 – – 500,000 £3.72 – 07 Sep 2014 07 Sep 2021
SAYE 4,191 – – 4,191 £3.68 – 01 Sep 2016 28 Feb 2017
Former executive directors
Iain Conn SAYE 797 – – –a£3.16 – – 31 Dec 2014
SAYE 3,017 – – 2,005b£3.68 – 01 Jan 2015 30 Jun 2015
The closing market prices of an ordinary share and of an ADS on 31 December 2014 were £4.11 and $38.12 respectively.
During 2014 the highest market prices were £5.27 and $53.48 respectively and the lowest market prices were £3.64 and $34.88 respectively.
BP 2011 = BP 2011 plan. These options were granted to Dr Brian Gilvary prior to his appointment as a director and are not subject to performance conditions.
SAYE = Save As You Earn all employee share scheme.
a The option lapsed on Iain Conn’s departure from the board in accordance with the rules.
b Potential maximum shares have been pro-rated with a shorter exercise period in accordance with the rules.
BP Annual Report and Form 20-F 2014 85