BT 2015 Annual Report Download - page 116

114 BT Group plc
Annual Report 2015
ncentive share plan 01
he  is a conditional share award. he awards ranted in 01 vest in
a 01. he perforance conditions are based 0 on relative 
0 on noralised free cash ow and 0 on rowth in underlin
revenue ecludin transit over a three-ear perforance period.
TSR
he  eleent is easured aainst a coparator roup containin
other telecounications copanies and copanies which are of a
siilar sie or aret capitalisation have a siilar business i and
spread as  or operate in coparable arets.
he  coparator roup for the 01  coprised the followin
copanies
Accenture
AT & T
Belgacom

BT Group
able  ireless orldwide
ap eini
entrica
eutsche eleo
France Telecom
ellenic eleco

ational rid
Portugal Telecom
oal K
wissco
alal
Telecom Italia
elefnica
eleo ustria
Telenor
eliaonera
erion
irin edia
odafone
he  for a copan is calculated b coparin the return inde
 at the beinnin of the perforance period with the  at the
end of the period. he  is the  value of a copan easured
on a dail basis as traced b independent analsts atastrea.
t uses the ocial closin price for a copans shares adusted for
all capital actions and dividends paid. he initial  is deterined b
calculatin the averae  value taen dail over the three onths
prior to the beinnin of the perforance period and the end value is
deterined b calculatin the averae  over the three onths up to
the end of the perforance period. his itiates the eects of share
price volatilit.  positive chane between the initial and final values
indicates rowth in .
he followin raph shows the vestin schedule for the  eleent of
the 01  awards.
TSR vesting schedule 2012 Awards
TSR ranking position
% of share award vesting
0%
25%
50%
30252015105
0
he copans shares achieved a  perforance of 1..
hiswas th out of  copanies durin the three-ear period and
resulted in 0 out of 0 of the  award that related to the 
eleentvestin.
1RUPDOLVHGIUHHFDVKƮRZ
hen we set the perforance easures for the 01  the threshold
for the three-ear cuulative noralised free cash ow was set well
above consensus aret epectations at the tie with the upper part
ofthe rane considered to be etreel stretchin. e achieved a three-
ear cuulative noralised free cash ow outcoe of .bn. his fell
between the threshold and aiu tarets of bn to bn resultin
in . out of the 0 of the  award that related to the cash ow
eleent vestin.
Revenue growth
 easure for sustainable revenue rowth was added to the  to
reect the roups ai to drive sustainable profitable revenue rowth.
he easure was based on rowth in underlin revenue ecludin
transit easured aainst the baseline of 0111 with the threshold
set as rowth of .
he ipact of challenin arets and reulator pricin pressures
resulted in the threshold taret for revenue rowth not bein et.
ccordinl this eleent did not vest.
Overall vesting of 2012 ISP
he perforance in the  and noralised free cash ow resulted in a
. vestin of the 01 . he nuber of shares due to vest under
the 01  in a 01 is set out below. n estiate of the cash
value of the shares vestin is shown in the sinle fiure table on pae 11.
Director
estin of
free cash
ow eleent
000
alue of 
element
000
otal value of
 estin
000a estin hares
avin atterson  10 11 119
on hanua 91 1010 101 9111
a$QHVWLPDWHEDVHGRQWKHWKUHHPRQWKDYHUDJHVKDUHSULFHIURP-DQXDU\WR0DUFK
RI~
otal pension entitleents audited
he  ension chee  closed to new entrants on 1 arch
001. one of the eecutive directors participate in future service
accrual in the  on hanua has deferred benefits in the .
ecutive directors who have been ebers of the  and who retain
deferred benefits in the  also benefit fro a death in service lup
su of four ties salar.
ll new eploees are eliible to oin the defined contribution 
etireent avin chee . he  is a roup personal
pension plan. or eecutive directors the copan arees to pa a fied
percentae of the eecutives salar each ear which can be put towards
the provision of retireent benefits. ecutive directors who have
never been ebers of the  benefit fro death in service cover
that would provide a lup su of four ties salar and a dependants
pension of 0 of capped salar.
ir ichael ae is not a eber of an of the copan pension
schees and the copan ade no paents towards retireent
provision for hi.  provides hi with a lup su death in service
benefit of 1.
avin atterson receives an annual allowance eual to 0 of salar in
lieu of pension provision as set out in the table on pae 11. avin has
previousl been a eber of the  but neither he nor the copan
has ade an contribution to the schee durin 011.  also
provides death in service cover of a lup su of four ties his salar
plusa widows pension of 0 of his capped salar.
on hanua is not a contributin eber of an of the copan
pension schees he did not accrue an  pension over the financial
ear and no other contributions were ade. urther inforation is
provided in the table below. he copan has areed to pa hi an
annual aount eual to 0 of salar in lieu of pension provision as
set out in the table on pae 11. he  deferred benefit is paable
fro his 0th birthda.  provides death in service cover of a lup su
of four ties his salar which would cease if his  benefits were put
intopaent.