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National Grid Gas plc Annual Report and Accounts 2009/10 69
29. Share options and reward plans
Active share plans
Additional information in respect of active share schemes
2010 2009
000s 000s
Performance share plan
A
wards of ordinary share equivalents at 1 April 1,287 990
A
wards made 561 402
Lapses/forfeits (19) (58)
Exercises (582) (54)
Transfers (i) -7
A
wards of ordinary share equivalents at 31 March 1,247 1,287
Conditional awards available for release at 31 March -268
Deferred share plan
A
wards of ordinary share equivalents at 1 April 99 66
A
wards made 32 47
Lapses/forfeits --
Exercises (60) (14)
A
wards of ordinary share equivalents at 31 March 71 99
Conditional awards available for release at 31 March
- -
(i) Transfers arise from employees moving between National Grid Gas and other companies in the National Grid group.
Non-active share plans
Additional information in respect of non-active share schemes
2010 2009
000s 000s
Share matching plan
A
wards at 1 April 16 20
A
wards exercised (4) (4)
A
wards of ordinary share equivalents at 31 March 12 16
Conditional awards available for release at 31 March 12 16
We also have a number of historical plans under which awards are still outstanding, but no further awards will be granted. These include the
Executive Share Option Plan and the Share Matching Plan.
The Executive Share Option Plan applied to senior executives, including Executive Directors of National Grid plc. Options granted were
subject to the achievement of performance targets related to National Grid's TSR over a three-year period and those for 2000 are subject to a
final retest in 2010 after which they will lapse if the performance criteria is not met. The share options are generally exercisable between the
third and tenth anniversaries of the date of grant if the relevant performance target is achieved.
The Share Matching Plan applied to Executive Directors of National Grid plc and other Directors and senior employees whereby a
predetermined part of each participant’s bonus entitlement is automatically deferred into National Grid plc shares (known as qualifying shares)
and a matching award may be exercised under the Plan after a three-year period, provided the Director or senior employee remains employed
by National Grid.
The Sharesave scheme is savings related where, under normal circumstances, share options are exercisable on completion of a three or a
five-year Save-As-You-Earn contract. The exercise price of options granted represents 80% of the market price at the time of the invitation.
Under the Deferred Share Plan, one half of any bonus earned by Executive Directors of National Grid plc and a predetermined part of any
bonus earned by other Directors and senior employees is automatically deferred into National Grid shares. The shares are held in trust for
three years before release.
Under the PSP, awards have been made to Directors and approximately 121 senior employees. Awards made in 2004 have lapsed. For
awards made from 2005, the criteria was amended so that 50% is based on National Grid's Total Shareholder Return (TSR) performance
when compared to the FTSE 100 and 50% is based on the annualised growth of National Grid's earnings per share compared to the growth in
RPI (the general index of retail prices for all items). Awards are delivered in National Grid plc shares.
National Grid operates three principal forms of share option and award plans in which our employees and Directors participate. These are an
employee Sharesave scheme, a Performance Share Plan (PSP) and Deferred Share Plan.