EasyJet 2015 Annual Report Download - page 113

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Strategic report Governance Accounts
109
www.easyJet.com
Weighted average exercise prices are as follows:
1 October
2014
£
Granted
£
Forfeited
£
Exercised
£
30 September
2015
£
Discretionary schemes 1.84 – – 1.84 –
Save As You Earn scheme 8.04 13.23 4.18 3.75 11.85
The exercise price of all awards save those disclosed in the above table is £nil.
The number of awards exercisable at each year end and their weighted average exercise price is as follows:
Price
£
Number
million
2015 2014 2015 2014
Discretionary schemes – 1.84 – 0.4
Long Term Incentive Plan – – 0.1 1.3
Save As You Earn scheme 4.18 2.88 0.2 0.2
0.3 1.9
The weighted average remaining contractual life for each class of share award at 30 September 2015 is as follows:
Years
Long Term Incentive Plan 8.0
Save As You Earn scheme 2.3
Discretionary schemes
All awards have a three year vesting period and performance conditions based on growth in earnings per share. All options expired this year,
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 250% (200% up to 31 December 2014) of salary each year and matching shares linked to the investment of up to 50% of
annual bonus in easyJet shares. Matching Share Awards will no longer operate for Executive Directors from the 2016 financial year onwards
and LTIP awards will be made as Performance shares only. For awards granted in the 2015 financial year, the vesting of these shares is
dependent on return on capital employed (ROCE) targets and total shareholder return (TSR) targets compared to FTSE 31-130 ranked
companies at the start of the performance period. For awards made prior to the 2015 financial year, the vesting of these shares is
dependent on return on capital employed (ROCE) targets and a positive total shareholder return (TSR) compared to FTSE 51-150
companies performance conditions measured over the three financial years ended 30 September 2015.
Save As You Earn scheme
The scheme is open to all employees on the UK payroll. Participants may elect to save up to £500 per month (2014: £350 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 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 the same tax benefits.
Share Incentive Plans
The plan is open to all employees on the UK payroll. Participants may invest up to £1,800 (2014: £1,800) of their pre-tax salary each year
to purchase partnership shares in easyJet. For each partnership share acquired easyJet purchases a matching share up to a maximum
value of £1,500 per annum. 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.
Subject to Company performance, easyJet also issues free shares under a new approved share incentive plan of up to £3,000 in value.
There is a similar unapproved scheme for international employees.