Holiday Inn 2005 Annual Report Download - page 67

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24 SHARE-BASED PAYMENTS (CONTINUED)
The Group recognised £17m (2004 £12m) related to equity settled share-based payment transactions during the year.
The aggregate consideration in respect of ordinary shares issued under option schemes during the year was £10m (2004 £16m).
The following table sets forth awards and options granted during 2005. No awards were granted under the Sharesave Plan or US Employee
Stock Purchase Plan during the year.
Short Term Deferred Performance Restricted Executive Share
Incentive Plan Share Plan Option Plan
Number of shares awarded in 2005 624,508 5,173,633 2,104,570
In 2005 and 2004, the Group used separate option pricing models and assumptions for each plan. The following tables set forth information
about how the fair value of each option grant is calculated:
Short Term Deferred Performance Restricted Executive Share
2005 Incentive Plan Share Plan Option Plan
Valuation model Binomial Monte Carlo Binomial
Simulation and
Binomial
Weighted average share price 652.8p 702.0p 627.0p
Exercise price 620.0p
Expected dividend yield 2.73% 3.18% 3.62%
Risk-free interest rate 4.69%
Volatility (a) 28%
Term (years) (b) 2.0 3.0 6.5
Short Term Deferred Performance Restricted Executive Share
2004 Incentive Plan Share Plan Option Plan
Valuation model Binomial Monte Carlo Binomial
Simulation and
Binomial
Weighted average share price 498.0p 550.0p 494.0p
Exercise price 494.0p
Expected dividend yield 3.74% 3.49% 3.81%
Risk-free interest rate 4.73%
Volatility (a) 31.33%
Term (years) (b) 2.8 3.0 6.5
a The expected volatility was determined by calculating the historical volatility of the Company’s share price corresponding to the expected life of the option
or share award.
b The expected term of the options is taken to be the mid point between vesting and lapse, as historical exercise patterns have shown this to be appropriate.
InterContinental Hotels Group 2005 65