Cathay Pacific 2005 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2005 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

71
Cathay Pacific Airways Limited Annual Report 2005
19. Share capital
2005 2004
Number of shares HK$M Number of shares HK$M
Authorised (HK$0.20 each) 3,900,000,000 780 3,900,000,000 780
Issued and fully paid (HK$0.20 each)
At 1st January 3,370,215,348 674 3,343,515,048 669
Share options exercised 10,417,000 2 26,700,300 5
At 31st December 3,380,632,348 676 3,370,215,348 674
The Company adopted a share option scheme (the “Scheme”) on 10th March 1999 for the purpose of providing flight
deck crew with an incentive to contribute towards the Company’s results. All participants of the Scheme were flight
deck crew who paid HK$1 each on acceptance of their share options and were granted options to subscribe for
shares of the Company at a price not less than the higher of 80% of the average of the closing prices of the
Company’s shares on the Stock Exchange on the five trading days immediately preceding the date of grant, and the
nominal value of the shares. The Scheme had been closed and no share options were available for issue under the
Scheme during the year. The entitlement of each participant has not exceeded 0.32% of the maximum aggregate
number of shares in respect of which options have been granted under the Scheme.
Options to subscribe for a total of 68,327,000 shares at the exercise price of HK$7.47 per share were granted under
the Scheme on the date of grant 15th March 1999. Other than in limited circumstances, the options in relation to
50% of the shares became exercisable on 15th March 2002, and the balance on 15th March 2004. The options will,
except in limited circumstances, be exercisable until 14th March 2009.
HKFRS 2 “Share-based Payment” does not apply to this Scheme as share options were granted before 7th
November 2002.
Upon exercise of share options, equity is increased by the number of options exercised at the exercise price.
2005 2004
Number of shares Number of shares
Movements in options outstanding comprise:
At 1st January 26,494,500 53,194,800
Options exercised (10,417,000) (26,700,300)
At 31st December 16,077,500 26,494,500
Options vested at 31st December 16,077,500 26,494,500
No option was granted under the Scheme during the year.
2005 2004
Details of share options exercised during the year:
Exercise date 7/1/05 – 25/11/05 6/1/04 – 31/12/04
Proceeds received (HK$) 77,814,990 199,451,241
Weighted average closing share price immediately before
the exercise date (HK$) 14.46 15.07
Notes to the Accounts Balance Sheet