Barclays 2009 Annual Report Download - page 188

186 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Corporate governance
Remuneration report
continued
Share and long-term incentive plans continued
Table 22: Plans under which awards not made in 2009
Executive
Directors
Plan name eligible? Description
ISOP Yes – The Incentive Share Option Plan is a share option plan under which share options were granted to selected employees
(Incentive Share (including executive Directors). No options have been granted since 2004.
Option Plan) – ISOP contains HMRC approved and unapproved parts.
– Options were awarded at the market price at the date of grant calculated in accordance with the rules of the plan.
– Options granted had an EP threshold and a TSR performance condition associated with them. Options were normally
exercisable between three and ten years of the grant date.
– All options granted which met these performance criteria have now vested and are exercisable.
– On cessation of employment eligible leavers (as defined) normally are able to exercise their options; for other leavers,
options normally lapse.
– On a change of control options would remain exercisable for a specified period.
– The plan was approved for a ten year period by shareholders in April 2000.
ESOS n/a – The Executive Share Option Scheme is a share option plan under which share options were granted to selected
(Executive Share employees (including executive Directors). No options have been granted since 2000.
Option Scheme) – Options were awarded at the market price at the date of grant calculated in accordance with the rules of the plan.
– Options were normally exercisable between three and ten years of the grant date. All options are now vested.
– On cessation of employment eligible leavers (as defined) normally are able to exercise their option pro-rated for
performance; for other leavers, options normally lapse.
– On a change of control options remain exercisable for a specified period.
– The plan was adopted for a ten year period by shareholders in 1990.
BGI EOP No – The BGI Equity Ownership Plan (BGI EOP) was approved by shareholders at Barclays 2000 AGM to provide the
(BGI Equity employee share incentive arrangements required to recruit and retain senior management.
Ownership Plan) – Under the terms of the BGI EOP, options were granted at fair value to key BGI employees over shares in Barclays
Global Investors UK Holdings Limited (BGI Holdings) within an overall cap of 20% of the issued ordinary share
capital of BGI Holdings.
– Employees who were executive Directors of Barclays PLC at the date of grant were not eligible to receive options under
the BGI EOP.
– Following completion of the sale of BGI on 1st December 2009, the BGI EOP was terminated on 16th December 2009,
in accordance with the rules of the plan. Under the terms of EOP participants were able to exercise their outstanding
options in full. Participants were then able to sell their newly acquired and existing BGI Holdings shares
to Barclays Bank PLC. In accordance with the terms of EOP, the price per BGI Holdings share was determined to
be £109.45.
– As part of the termination of EOP, participants exercised outstanding options to purchase 6.4 million shares and the
Group repurchased all participants’ holdings totalling 10.2 million shares for a net consideration of £542m, after
deducting aggregate option exercise costs of £571m.
BGI EOP – Accounting and disclosure
– The BGI EOP is accounted for as an equity settled share-based payment in accordance with IFRS 2 ‘Share-based
Payment’. The fair value of the services received from the employees is measured by reference to the fair value of the
share options granted on the date of the grant. The cost of the employee services received in respect of the share
options granted is recognised in the income statement over the period that the services are received.
– In accordance with IFRS 2, details of share options granted and exercised, together with weighted average fair values
at grant date and weighted average exercise prices are set out in Note 44 to the accounts. In accordance with IAS 33
‘Earnings per Share’, unexercised options are taken into account in the calculation of diluted earnings per share as set
out in Note 11 to the accounts.
– For Group reporting, participants’ shareholdings are treated as non controlling interests and goodwill has been
previously recognised as a result of the purchase of shares offered for sale by employees. The related goodwill and
non-controlling interests relating to the scheme are included in Notes 21 and 33 to the accounts respectively.
– Following completion of the sale of BGI, the BGI EOP was terminated. The cost of terminating the plan has been
included as a cost of disposal in Note 38 to the accounts.
BGI Equity No – The BGI Equity Participation Plan was a share plan linked to the value of BGI shares intended for selected BGI
Participation employees (in the form of stock appreciation rights settled in shares of restricted share awards).
Plan – No awards have been or will be made under the plan as BGI has now been sold from the Group.