BT 2013 Annual Report Download - page 93

Governance
Governance 91
Governance
Governance 91
Share options held at 31 March 2013
Number of shares under option
1 April 2012 Granted Lapsed Exercised 31 March 2013
Option price
per share
Market price
at date of
exercise
Usual date
from which
exercisable
Usual
expiry
date
Sir Michael Rake 12,110a– – 12,110a– 68p 218.8pb1/8/2012 1/2/2013
1,485c– – – 1,485 104p 1/8/2016 1/2/2017
I Livingston 12,110a– – 12,110a– 68p 218.8pb1/8/2012 1/2/2013
769c– – – 769 104p 1/8/2016 1/2/2017
T Chanmugam 37,384d– – – 37,384 192p 24/6/2007 24/6/2014
12,110a– – 12,110a– 68p 237.6pe1/8/2012 1/2/2013
G Patterson 98,178d– – – 98,178 192p 24/6/2007 24/6/2014
Total 174,146 – – – 137,816
All of the above options were granted for nil consideration.
a Option granted on 7 April 2009 under the Employee Sharesave Scheme, in which all employees of the company are entitled to participate.
b Options exercised on 1 August 2012. Closing market price for information. Shares were retained after exercise of options.
c Option granted on 17 June 2010 under the Employee Sharesave Scheme, in which all employees of the company are entitled to participate.
d Options granted under the GSOP on 24 June 2004. The exercise of options was subject to a performance measure being met. The performance measure is relative TSR compared with a group
of 20 companies from the European Telecom Sector as at 1 April 2004. BT’s TSR had to be in the upper quartile for all the options to become exercisable. At median 30% of the options would be
exercisable. Below that point none of the options could be exercised. The three-year performance period ended on 31 March 2007. At that date, the company was at 8th position against the
comparator group and as a result, 42% of the options lapsed and 58% of each option became exercisable on 24 June 2007.
e Options exercised on 27 December 2012. Closing market price for information. Shares were retained after exercise of options.
The market price of BT shares at 31 March 2013 was 278p (2012: 226.4p) and the range during the year was 200.7p – 281p (2012: 161.0p –
232.1p).
Pensions
The BT Pension Scheme (BTPS) closed to new entrants on 31 March 2001. None of the executive directors participate in future service accrual in
the BTPS. Tony Chanmugam has deferred benefits in the BTPS. Executive directors who have been members of the BTPS also benefit from a death in
service lump sum of four times salary.
The principal pension scheme open to the majority of new employees is the BT Retirement Saving Scheme (BTRSS). The BTRSS is a group personal
pension plan and is a qualifying pension scheme under new auto enrolment legislation which applied to BT with effect from 1 November 2012 (the
Staging date). Certain subsidiaries have separate pension arrangements with alternative Staging dates commencing in September 2013 through
to 2017. For executive directors the company agrees to pay a fixed percentage of the executive’s salary each year which can be put towards the
provision of retirement benefits. Executive directors who have never been members of the BTPS benefit from a death in service lump sum of four
times salary and a dependant’s pension of 30% of capped salary.
Sir Michael Rake is not a member of any of the company pension schemes, and the company made no payments towards retirement provision. BT
provides him with a lump sum death in service benefit of £1m.
Ian Livingston is not a member of any of the company pension schemes, but the company has agreed to pay an annual amount equal to 30% of his
salary in lieu of pension provision as set out in the table on page 88. BT also provides him with a death in service lump sum benefit of four times his
salary.
Tony Chanmugam is not a contributing member of the company pension schemes, but the company has agreed to pay him an annual amount equal
to 30% of salary in lieu of pension provision as set out in the table on page 88. BT also provides him with a death in service lump sum benefit of four
times his salary.
Gavin Patterson receives an annual amount equal to 30% of salary in lieu of pension provision as set out in the table on page 88. Gavin is a member
of the BTRSS but has made no contributions to the scheme during 2012/13. BT also provides him with a death in service lump sum benefit of four
times his salary plus a widow’s pension of 30% of his capped salary.