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56 IHG Annual Report and Financial Statements 2009
Remuneration report continued
Long Term Incentive Plan awards
The awards made in respect of cycles ending on 31 December 2008, 2009, 2010 and 2011 and the maximum pre-tax number of ordinary
shares due if performance targets are achieved in full are set out in the table below. In respect of the cycle ending 31 December 2008,
86.7% of the award vested on 18 February 2009. In respect of the cycle ending on 31 December 2009, the Company finished in fourth place
in the TSR group and achieved 15.2% per annum adjusted EPS growth. Accordingly, 46% of the award will vest on 17 February 2010.
Maximum Maximum
LTIP LTIP value
End of year shares shares based
to which Maximum awarded vested Maximum on share
performance LTIP during Market during Market Actual/ LTIP price of
is based awards the year price per the year price per Value at planned awards 893p at
for award held at 1 Jan 2009 to Award share at 1 Jan 2009 to share at vesting vesting held at 31 Dec 2009
Directors (31 Dec) 1 Jan 2009 31 Dec 2009 date award 31 Dec 2009 vesting £ date 31 Dec 2009 £
Andrew Cosslett 2008 200,740 3.4.06 941.5p 174,0411481.25p 837,572 18.2.09
20092159,506 2.4.07 1256p 17.2.10 159,506 1,424,389
20102253,559 19.5.08 854p 16.2.11 253,559 2,264,282
20112272,201 3.4.09 604p 15.2.12 272,201 2,430,755
Total 613,805 272,201 685,266 6,119,426
Richard Solomons 2008 128,470 3.4.06 941.5p 111,3831481.25p 536,031 18.2.09
20092102,109 2.4.07 1256p 17.2.10 102,109 911,833
20102161,241 19.5.08 854p 16.2.11 161,241 1,439,882
20112173,096 3.4.09 604p 15.2.12 173,096 1,545,747
Total 391,820 173,096 436,446 3,897,462
1 This award was based on performance to 31 December 2008 where the performance measure related to both the Company’s TSR against a group of eight other
comparator companies and cumulative annual growth rate (CAGR) of rooms in the IHG system relative to a group of eight other comparator companies. The
number of shares released was graded, according to a) where the Company finished in the TSR comparator group, with 50% of the award being released for first
or second position and 10% of the award being released for median position; and b) relative CAGR of rooms, with 50% of the award being released for 3.9% (upper
quartile) CAGR and 10% of the award being released for 3.3% (median) CAGR. The Company finished in third place in the TSR group and achieved a relative CAGR
of 4.9%. Accordingly, 86.7% of the award vested on 18 February 2009.
2 All details of performance conditions in relation to these awards are provided in Section 5 of this report on page 51.
Share options
Between 2003 and 2005, grants of options were made under the IHG Executive Share Option Plan. No executive share options have been
granted since 2005. In 2003, a grant of options was made under the IHG all-employee Sharesave Plan.
Ordinary shares under option
Options Lapsed Exercised Share price Options Weighted
held at during during on date of held at average option Option
Directors 1 Jan 2009 the year the year exercise 31 Dec 2009 price price
Andrew Cosslett 157,3001157,300 901.89p 619.83p
Total 157,300 157,300
Richard Solomons 230,3202230,3202494.17p
100,5501100,5501619.83p
3,76933,769 466.75p 420.50p
Total 334,639 3,769 330,870 532.36p
This report was approved by the Board on 15 February 2010.
Ralph Kugler
Chairman of the Remuneration Committee
1 Executive share options granted in 2005 became exercisable in April 2008
up to April 2015.
2 Executive share options granted in 2004 became exercisable in April 2007
up to April 2014.
3 Sharesave options granted in 2003. These were exercisable between March
and August 2009.
Option prices during the year ranged from 420.50p to 619.83p per IHG share.
The closing market value share price on 31 December 2009 was 893.00p and
the range during the year was 446.00p to 903.50p per share.
The gain made by Directors in aggregate on the exercise of options during
the year was £437,732 (2008 £nil).