Experian 2009 Annual Report Download - page 124

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122 Experian Annual Report 2009
27. Share-based payment arrangements (continued)
(b) Share awards
(i) Summary of arrangements
Experian Free
Shares Plan
and the Experian UK
Experian Co-Investment Experian Reinvestment Experian Performance Approved All-Employee
Arrangements Plan Plan Share Plan Plan
Nature of arrangement Grant of shares1 Grant of shares1 Grant of shares Grant of shares
Vesting conditions:
– Service period 4 years 3 to 5 years 5 years 3 years
– Performance 100% – Benchmark prot 50% – Benchmark prot 50% – Benchmark prot n/a
performance of Group performance of Group performance of Group
assessed against assessed against assessed against
specied targets2 specied targets3 specied targets3
50% – n/a 50% – Distribution percentage
determined by ranking
Total Shareholder Return
(‘TSR’) relative to a
comparator group4
Expected outcome Benchmark prot – 100% Benchmark prot – 80% Benchmark prot – 79% n/a
of meeting performance Unconditional – 100% TSR – range from 29.6%
criteria (at grant date) to 57.4%
Maximum term 4 years 5 years 5 years 3.5 years
Method of settlement Share distribution Share distribution Share distribution Share distribution
Expected departures 5% 5% 5% 15%
(at grant date)
1. The grant date is the start of the nancial year in which performance is assessed. This is before the quantity of the shares award is determined but the
underlying value of the award is known at the grant date, subject to the outcome of the performance condition. The value of awarded shares reects the
performance outcome at the date of their issue to participants.
2. The Benchmark prot performance condition for the Experian Co-Investment Plan requires Benchmark PBT growth to exceed 6% over a 3 year period. The period
of assessment commences at the beginning of the nancial year of grant. This is not a ‘market-based’ performance condition as dened by IFRS 2.
3. The Benchmark prot performance condition for the Experian Reinvestment Plan and Experian Performance Share Plan requires Benchmark PBT growth at
least to exceed 7% over a 3 year period with the condition fully satised if Benchmark PBT growth is 14%. The period of assessment commences at the beginning
of the nancial year of grant. This is not a ‘market-based’ performance condition as dened by IFRS 2.
4. The Experian Performance Share Plan TSR condition is considered a ‘market-based’ performance condition as dened by IFRS 2. In valuing the awarded
shares, TSR is evaluated using a Monte Carlo simulation with historic volatilities and correlations for comparator companies measured over the 3 year period
preceding valuation and an implied volatility for Experian plc.
.
Notes to the Group nancial statements continued
Financial statements