EasyJet 2010 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2010 EasyJet 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 100

  • 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
  • 97
  • 98
  • 99
  • 100

Overview Business review Governance Accounts Other information
easyJet plc
Annual report and accounts 2010
79
The fair value of grants under the discretionary and sharesave schemes is estimated by applying the Binomial Lattice option pricing model
using the following key assumptions. The fair value of grants under all other schemes is the share price on the date of grant.
Awards by grant date
Share price
(£)
Exercise price
(£)
Expected
volatility
(%)
Option life
(years)
Risk-free
interest rate
(%)
Fair value
(£)
Discretionary schemes
19 January 2004 3.80 3.60 40% 6.5 4.62% 1.90
8 December 2004 1.81 1.84 42% 6.5 4.45% 0.88
1 December 2005 3.42 3.30 42% 6.5 4.15% 1.42
Long Term Incentive Plan
1 December 2006 5.95 – – – – 5.95
3 December 2007 5.63 – – – – 5.63
29 February 2008 4.33 – – – – 4.33
16 January 2009 2.88 – – – – 2.88
16 December 2009 and 5 July 2010 3.49 – – – – 3.49
Sharesave
2 June 2006 3.66 2.61 42% 3.5 4.68% 1.79
8 June 2007 5.19 4.79 32% 3.5 5.76% 1.82
6 June 2008 2.86 2.40 41% 3.5 4.92% 1.16
5 June 2009 3.02 2.43 53% 3.5 2.52% 1.40
10 June 2010 4.36 3.49 53% 3.5 1.20% 1.96
Share incentive plan 2.71–7.27 – – – – 2.71–7.27
Share price is the closing share price from the last working day prior to the date of grant.
Exercise price for the discretionary schemes was determined using a five-day weighted average price. For the Sharesave scheme,
a 20% discount has been given between share price and exercise price.
Expected volatility is based on historical volatility over a period comparable to the expected life of each type of option.
In all cases the assumed dividend yield is zero as easyJet does not currently pay dividends.
Levels of early exercises and lapses are estimated using historical averages.
The weighted average fair value of shares granted under the share incentive plan during the year was £4.15 (2009: £3.00).