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Notes to the Financial Statements continued
52 The Carphone Warehouse Group PLC Annual Report 2008
6 Share-based payments
The Group issues equity settled share-based payments to certain employees, through the following schemes:
a) Performance Share Plan:
During the period the Group made an additional award under the 2006 Performance Share Plan. This award is subject to the same Total Shareholder
Return (“TSR”) performance targets as the original awards made in December 2006. These performance targets are measured over an initial
performance period to 4 June 2010 and a subsequent performance period to 4 June 2011. The awards made under this plan in previous periods are
subject to a mixture of Headline earnings per share (see note 11) and TSR performance targets measured over a three or four year performance period.
If the options remain unexercised after a period of ten years from the date of grant, the options expire. Options are forfeited if the employee leaves the
Group before the options vest. Details of the performance targets are provided in the Remuneration Report on pages 32 to 38.
The following table summarises the number and weighted average exercise prices (“WAEP”) of share options for the scheme:
2008 2007
Number WAEP Number WAEP
million £ million £
Outstanding at the beginning of the period 52.1 – 29.4 –
Granted during the period 2.3 – 24.5 –
Forfeited during the period (5.8) – (1.8) –
Exercised during the period (5.6) – ––
Outstanding at the end of the period 43.0 – 52.1 –
Exercisable at the end of the period 5.5 – ––
The options outstanding at 29 March 2008 had a weighted average remaining contractual life of 8.3 years (2007 – 9.0 years). The options exercised
during the period were exercised at a weighted average market price of £3.51. No options were exercised in the prior period.
b) Executive Share Option Scheme:
The Group has an Executive Share Option Scheme which provides for a grant price equal to the average quoted market price of the Company’s shares
on the date of grant. The vesting period is generally three years. If the options remain unexercised after a period of ten years from the date of grant, the
options expire. Options are forfeited if the employee leaves the Group before the options vest.
The following table summarises the number and WAEP of share options for the scheme:
2008 2007
Number WAEP Number WAEP
million £ million £
Outstanding at the beginning of the period 21.4 1.11 32.5 1.05
Forfeited during the period (0.3) 1.06 (0.2) 0.94
Exercised during the period (12.2) 1.17 (10.9) 0.93
Outstanding at the end of the period 8.9 1.02 21.4 1.11
Exercisable at the end of the period 8.9 1.02 21.4 1.11
The options outstanding at 29 March 2008 had a weighted average remaining contractual life of 3.6 years (2007 – 4.5 years). The options exercised
during the period were exercised at a weighted average market price of £3.31 (2007 – £3.09).
The summary above includes 5.4m (2007 – 14.4m) options that were granted before 7 November 2002. In accordance with IFRS2 ‘Share-based
Payment’, no cost has been recognised in respect of these options.
c) Retail Share Option Scheme:
The Group has a Retail Share Option Scheme, which is open to senior employees in the UK Retail business. The scheme provides for a grant price
equal to the average quoted market price of the Company’s shares on the date of grant. Options granted are subject to performance criteria. The vesting
period is generally three years. If the options remain unexercised after a period of ten years from the date of grant, the options expire. Options are
forfeited if the employee leaves the Group before the options vest.
The following table summarises the number and WAEP of share options for the scheme:
2008 2007
Number WAEP Number WAEP
million £ million £
Outstanding at the beginning of the period 4.1 1.82 6.8 1.67
Granted during the period 3.3 3.56 0.2 3.10
Forfeited during the period (0.2) 2.14 (1.2) 1.66
Exercised during the period (1.5) 1.53 (1.7) 1.45
Outstanding at the end of the period 5.7 2.90 4.1 1.82
Exercisable at the end of the period 1.5 1.61 1.6 1.44