EasyJet 2010 Annual Report Download - page 80

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easyJet plc
Annual report and accounts 2010
Notes to the accounts
continued
78
19 Share incentive schemes continued
The number of awards exercisable at each year end and their weighted average exercise price is as follows:
Price
(£)
Number
(million)
Awards exercisable 2010 2009 2010 2009
Pre-flotation scheme –1.66 – 3.8
Discretionary schemes 2.21 2.16 3.8 4.8
Sharesave 4.79 2.56 0.3 0.2
Share incentive plan –– 0.7 0.2
4.8 9.0
The weighted average remaining contractual life for each class of share award at 30 September 2010 is as follows:
Years
Discretionary schemes 4.1
Long Term Incentive Plan 2.1
Sharesave 1.8
Share incentive plan 1.0
Pre-flotation scheme
Options vested in tranches of 25% ending on the third anniversary of easyJet’s admission to the Official List on 22 November 2000,
and have now expired.
Discretionary schemes
Options awarded in 2001 in connection with easyJet’s admission to the Official List had a three year vesting period and no performance
conditions.
All other awards had a three year vesting period and performance conditions based on growth in earnings per share. All options expire
ten years after grant.
Long Term Incentive Plan
The plan is open, by invitation, to Executive Directors and senior management, and provides for annual awards of performance shares
worth up to 200% of salary each year and matching shares linked to the investment of up to 50% of annual bonus in easyJet shares.
The vesting of these awards is dependent on return on equity targets being achieved.
Sharesave
Sharesave is open to all employees on the UK payroll. Participants may elect to save up to £250 per month under a three year savings
contract. An option is granted by the Company to buy shares at a discount of 20% from market price at the time of the grant. At the end
of the savings period, a tax free bonus is applied to the savings and the option becomes exercisable for a period of six months.
Employees who are not paid through the UK payroll may save under similar terms and conditions, albeit without tax benefits.
Share incentive plan
The share incentive plan is open to all employees on the UK payroll. Participants may invest up to £1,500 of their pre-tax salary each year
to purchase partnership shares in easyJet. For each partnership share acquired easyJet purchases a matching share. Employees must remain
with easyJet for three years from the date of purchase of each partnership share in order to qualify for the matching share, and for five
years for the shares to be transferred to them tax free. The employee is entitled to dividends and to vote at shareholder meetings.
Employees on the Swiss payroll may save under similar terms and conditions, albeit without tax benefits.