Experian 2009 Annual Report Download - page 121

Download and view the complete annual report

Please find page 121 of the 2009 Experian 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 152

  • 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
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

119Experian Annual Report 2009
Introduction
2 – 7
Business review
8 – 43
Governance
44 – 72
Financial statements
Group nancial statements
27. Share-based payment arrangements
The Group has a number of equity settled, share-based employee incentive plans. These include options and awards in
respect of shares in Experian plc made at or after the demerger in October 2006 together with options and awards previously
made in respect of shares in GUS plc which were rolled over into options and awards in respect of shares in Experian plc at
the demerger.
Prior to the demerger, Experian employees participated in share-based employee incentive plans in respect of ordinary shares
in GUS plc. On demerger, although certain GUS options and awards vested early, the majority of Experian participants’
outstanding GUS options and awards rolled over into the Experian equivalent share-based employee incentive plans.
Accordingly the following information relates to options and awards held by the Group’s employees including details in
respect of Experian share-based employee incentive plans and, where appropriate, GUS share-based employee incentive plans.
Option, award and share prices are disclosed in sterling as this is the currency in which ordinary shares in Experian plc are
quoted and ordinary shares in GUS plc were quoted prior to the demerger.
(a) Share options
(i) Summary of arrangements
Experian Share The North America
Option Plan Experian Sharesave Plans Stock Option Plan1
Nature Grant of options ‘Save as you earn’ plans Grant of options
Vesting conditions:
– Service period 3 and 4 years 1 year for US plan 1, 2 and 3 years
3 or 5 years for other
– Performance/Other n/a Saving obligation over the n/a
vesting period
Expected outcome of meeting
performance criteria (at grant date) n/a n/a n/a
Maximum term 10 years 1, 3.5 or 5.5 years 6 years
Method of settlement Share distribution Share distribution Share distribution
Expected departures (at grant date) 5% 1 year3 – 5% 1 year – 0%
3 years3 – 30% 2 years – 15%
5 years3 – 50% 3 years – 20%
Option exercise price calculation2 Market price over the 3 15% discount to market price Market price over the
dealing days preceding over the 3 dealing days 3 dealing days
the grant preceding the grant for preceding the grant
US plan
20% discount to market price
over the 3 dealing days
preceding the grant for
other plans
1. The North America Stock Option Plan was a former GUS share option plan which was rolled over into an Experian equivalent plan at the demerger. The
arrangements in respect of other former GUS plans, which were also rolled over into Experian equivalent plans, are broadly similar to those of the equivalent
Experian plans. These former GUS plans comprise The 1998 Approved and Non-Approved Executive Share Option Schemes and savings related share option
plans. At roll-over, the quantity and exercise price of grants of all such plans were modied to adjust for the difference between the GUS and Experian share
prices.
2. Three day averages are calculated by taking middle market quotations of an Experian plc share from the London Stock Exchange daily ofcial list.
3. The stated values for expected departures include participants who did not meet the saving requirement of the plans.
4. The weighted average share price of options exercised during the year was £4.00 (2008: £5.02).