BT 1999 Annual Report Download - page 55

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54
REPORT ON DIRECTORS’ REMUNERATION
Unrealised gains on the above share options at 31 March 1999, based on the market price of the shares at that date, excluding
the employee compensation for the special dividend which is discretionary in respect of directors’ share options, were as follows:
Options exercisable Options not exercisable
)))))))!!00005!!!00005
Unrealised gains Unrealised gains
))))))))%!!!0051111)%!!!!0051111
Number 1999 1998(a) Number 1999 1998(a)
of shares £000 £000 of shares £000 £000
))))))%!!!!!!!0111!!!0051111!!!0111!!!0051111
Sir Iain Vallance 82,487 538 240 – – –
Sir Peter Bonfield – – –6,460 48 25
R P Brace 78,540 460 831 5,208 35 22
B Cockburn – – –3,330 16 –
00000051111!!!0111!!!0051111!!!0111!!!0051111
(a) Based on options outstanding at 31 March 1998 and the market price of the shares at that date.
The market price of the shares at 31 March 1999 was 1,011p (1998 – 650p) and the range during the year ended 31 March 1999
was 630p to 1,118.5p.
Details of the company’s ordinary shares provisionally awarded to directors, as participants under the ESP and PSP
(note 31 to the financial statements), are as follows:
Total number of award shares Range of value of award
(a) (b) (c) (d)
)))))))!!0000001!!!0011115
Dividends 31 March Minimum Maximum
1 April 1998 Awarded reinvested 1999 £000 £000
))))))%!!!!!!!0111!!!0111!!!0111!!!0111!!!0051111
Sir Peter Bonfield 240,420 71,909 6,511 318,840 499 3,223
R P Brace 256,909 36,508 6,106 299,523 478 3,028
B Cockburn 32,520 49,782 1,714 84,016 302 816
A W Rudge 124,028 – 2,582 126,610 256 1,280
00000051111!!!0111!!!0111!!!0111!!!0111!!!0051111
Total 653,877 158,199 16,913 828,989 1,535 8,347
00000051111!!!0111!!!0111!!!0111!!!0111!!!0051111
(a) Excluding shares purchased by each director and held under the ESP (see page 52).
(b) During the 1998 financial year, Bill Cockburn was awarded 32,520 shares under the PSP. The three-year performance cycle for
that award ended on 31 July 1998 and, on the basis of the position of BT’s TSR at the end of the initial three-year cycle, 90% of
the shares under award, including reinvested dividends, will vest. The vesting will take place within the two years following the
end of the performance cycle in accordance with the rules of the plan.
(c) For the ESP, based on the market value of the company’s shares at 31 March 1999. The minimum figure represents those
shares held at 31 March 1999 which will transfer to each director at the end of year five of the plan (1999 to 2003). The maximum
figure represents all shares held at 31 March 1999 which will transfer to each director at the end of year five of the plan (1999 to
2003) provided the corporate performance measure has been fully met. Normally, shares will transfer only if the individual is still
employed by the group. However, the plan gives discretion to preserve awards of shares after retirement. Under this discretion,
Dr Rudge’s awards have been preserved until the end of year five of the plan.
(d) For the PSP, shows the market value at 31 March 1999 of the company’s shares which will vest in Bill Cockburn.
At 31 March 1999, deferred bonuses of 18,352 shares, 6,605 shares and 6,605 shares had been awarded to Sir Peter Bonfield,
Robert Brace and Bill Cockburn, respectively, under the DBP for the 1998 financial year. These shares will normally be transferred
to participants at the end of the three-year deferred period if those participants are still employed by BT.
At 31 March 1999, Sir lain Vallance, Sir Peter Bonfield, Robert Brace and Bill Cockburn each had a non-beneficial interest in
53,912 shares (1998 – 21,919) purchased by BT Employee Shares Trustees Limited for allocation to employees under the BT
Employee Share Ownership Scheme, and 6,947,296 shares (1998 – 10,467,987) held in trust by Ilford Trustees (Jersey) Limited for
allocation to participating employees under the ESP, the DBP and the PSP.
No director had any interest in the debentures of the company or in the share capital or debentures of its subsidiaries.
Subsequent to 31 March 1999, Robert Brace has notified the company of the acquisition of beneficial holdings of a total of
26 shares under personal equity plans and Helen Alexander notified the company of the acquisition of 930 shares. There have
been no other changes in the directors’ interests in the share capital, including options to subscribe for shares, or in the
debentures of the company and its subsidiaries between 31 March 1999 and 25 May 1999.