Vodafone 2010 Annual Report Download - page 103

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Financials
Vodafone Group Plc Annual Report 2010 101
20. Share-based payments
The Company currently uses a number of equity settled share plans to grant options and shares to its directors and employees.
The maximum aggregate number of ordinary shares which may be issued in respect of share options or share plans will not (without shareholder approval) exceed:
10% of the ordinary share capital of the Company in issue immediately prior to the date of grant, when aggregated with the total number of ordinary shares which have
been allocated in the preceding ten year period under all plans; and
5% of the ordinary share capital of the Company in issue immediately prior to the date of grant, when aggregated with the total number of ordinary shares which have
been allocated in the preceding ten year period under all plans, other than any plans which are operated on an all-employee basis.
Share options
Vodafone Group executive plans
No share options have been granted to any directors or employees under the Company’s discretionary share option plans in the year ended 31 March 2010.
There are options outstanding under a number of plans: the Vodafone Group 1998 Executive Share Option Scheme and the Vodafone Group 1988 Share Option Scheme,
the Vodafone Group 1999 Long-Term Incentive Plan and the Vodafone Global Incentive Plan. These options are normally exercisable between three and ten years from the
date of grant. The vesting of some of these options is subject to satisfaction of performance conditions. Grants made to US employees are made in respect of ADSs.
Vodafone Group Sharesave Plan
The Vodafone Group 2008 Sharesave Plan and its predecessor the Vodafone Group 1998 Sharesave Scheme enable UK staff to acquire shares in the Company through monthly
savings of up to £250 over a three or five year period, at the end of which they also receive a tax free bonus. The savings and bonus may then be used to purchase shares at the
option price, which is set at the beginning of the invitation period and usually at a discount of 20% to the then prevailing market price of the Company’s shares.
Other share option plans
Share option plans are operated by certain of the Group’s subsidiaries although awards are no longer made under these plans.
Share plans
Vodafone Group executive plans
Under the Vodafone Global Incentive Plan awards of shares are granted to directors and certain employees. The release of these shares is conditional upon continued
employment and for some awards achievement of certain performance targets measured over a three year period.
Under the Vodafone Group Deferred Share Bonus Plan, directors and certain employees were able to defer their 2007 annual bonuses into shares. These shares were released
in 2009 together with additional shares based on the outcome of a two year performance condition.
Vodafone Share Incentive Plan
The Vodafone Share Incentive Plan enables UK staff to acquire shares in the Company through monthly purchases of up to £125 per month or 5% of salary, whichever is
lower. For each share purchased by the employee, the Company provides a free matching share.
Vodafone Group Global AllShare Plan
A significant number of employees received a conditional award of 340 shares (2009: 290) in the Company on 30 June 2009 under the Vodafone Group Global AllShare
Plan. The awards vest after two years and are not subject to performance conditions but are subject to continued employment. There will be no further grants under this plan.
Movements in ordinary share options and ADS options outstanding
ADS options Ordinary share options
2010 2009 2008 2010 2009 2008
Millions Millions Millions Millions Millions Millions
1 April 1 1 3 334 373 584
Granted during the year – – – 13 7 46
Forfeited during the year – – – (2) (11) (30)
Exercised during the year – – (1) (47) (16) (204)
Expired during the year – – (1) (32) (19) (23)
31 March 1 1 1 266 334 373
Weighted average exercise price:
1 April $15.37 $18.15 $21.46 £1.41 £1.42 £1.35
Granted during the year – – – £0.94 £1.21 £1.63
Forfeited during the year – – – £1.50 £1.47 £1.67
Exercised during the year – – $19.52 £1.11 £1.09 £1.20
Expired during the year – – $28.50 £1.67 £1.55 £1.72
31 March $15.07 $15.37 $18.15 £1.41 £1.41 £1.42