Virgin Media 2006 Annual Report Download - page 114

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. Stock−Based Compensation Plans (Continued)
Non−vested Shares
As a result of the reverse acquisition of Telewest as described in Note 5, each share of our common stock issued and outstanding
immediately prior to the effective date of the acquisition was converted into the right to receive 2.5 shares of the new parent company.
A summary of the status of the company’s non−vested shares as of December 31, 2006, and of changes during the year ended
December 31, 2006 is given below.
Shares
Weighted
Average
Grant−date
Fair value
Non−vested—beginning of year 75,330 $ 25.04
Granted 2,458,150 25.79
Vested (90,057) 25.80
Forfeited or expired (8,027) 25.04
Non−vested—end of year 2,435,396 $ 25.77
As of December 31, 2006, there was £16.0 million of total unrecognized compensation cost related to non−vested share−based
compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted−average period of 1.6
years. The total fair value of shares vested during the years ended December 31, 2006, 2005 and 2004, was £1.3 million, £1.0 million,
and £3.0 million, respectively.
Virgin Media Group Bonus Schemes
Participants in the 2005 and 2004 Virgin Media Group Bonus Schemes were eligible to receive a bonus payment equal to a
percentage of their base salary based upon the attainment of certain performance targets. Payment under these schemes may be made
in shares of common stock to some executives at our discretion.
No shares were awarded under these schemes during the years ending December 31, 2006 and 2005. The total numbers of shares
and average fair value per share awarded under these schemes during the year ending December 31, 2004 were 130,358 and $25.85,
respectively.
Virgin Media Long Term Incentive Plan
Participants in the Virgin Media Long Term Incentive Plan for 2006 and 2005 are awarded Restricted Stock Units which vest
after a 3 year period dependent on the attainment of certain long term performance targets and continued employment. The final
number of Restricted Stock Units vested will be settled, at our discretion, in either common stock or an amount of cash equivalent to
the fair market value at the date of vesting.
The total number of restricted stock units awarded under the 2006 and 2005 Long Term Incentive Plans was 1,143,472 and
440,563, respectively, of which 65,416 and 274,784 had lapsed due to the cessation of employment as at December 31, 2006.
F−34
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007