Aviva 2007 Annual Report Download - page 177
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Please find page 177 of the 2007 Aviva annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.28 – Ordinary share capital
This note gives details of Aviva plc’s ordinary share capital and shows the movements during the year.
(a) Details of the Company’s ordinary share capital are as follows:
2007 2006
£m £m
The authorised share capital of the Company at 31 December 2007 was:
3,000,000,000 (2006: 3,000,000,000) ordinary shares of 25 pence each 750 750
The allotted, called up and fully paid share capital of the Company at 31 December 2007 was:
2,621,792,828 (2006: 2,565,753,431) ordinary shares of 25 pence each 655 641
(b) During 2007, a total of 56,039,397 ordinary shares of 25 pence each were allotted and issued by the Company
as follows:
Share Share
Number capital premium
of shares £m £m
At 1 January 2,565,753,431 641 1,189
Shares issued under the Group’s Employee and Executive Share Option Schemes 14,871,901 4 44
Shares issued in lieu of dividends 41,167,496 10 (10)
At 31 December 2,621,792,828 655 1,223
Ordinary shares in issue in the Company rank pari passu. All the ordinary shares in issue carry the same right to receive
all dividends and other distributions declared, made or paid by the Company.
Shares in lieu of the 2006 final and 2007 interim dividends were issued on 17 May and 16 November 2007 respectively.
The issue of shares in lieu of cash dividends is considered a bonus issue under the terms of the Companies Act 1985 and
the nominal value of the shares is charged to the share premium account.
29 – Equity compensation plans
This note describes the various equity compensation plans we use, and shows how we value the options and awards of
shares in the Company.
(a) Description of the plans
The Group maintains a number of active stock option and award schemes. These are as follows:
(i) Savings-related options
These are options granted under the Inland Revenue-approved Save As You Earn (SAYE) share option schemes in the UK
and in Ireland. Options are normally exercisable during the six month period following either the third, fifth or seventh
anniversary of the start of the relevant savings contract.
(ii) Executive share options
These are options granted on various dates from 1998 to 2004, under the Aviva Executive Share Option Scheme or
predecessor schemes. Options granted between 1998 and 2000 were subject to the satisfaction of conditions relating
to either the Company’s return on equity shareholders’ funds (ROE) or its relative total shareholder return (TSR) against
a chosen comparator group. In respect of options granted from 2000 the performance condition has been a mixture of
both ROE and TSR measures. In all cases, performance is measured over a three year performance period and the options
are normally exercisable between the third and tenth anniversary of their grant.
(iii) Deferred bonus plan options
These are options granted in 1999 and 2000 under the CGU Deferred Bonus Plan. Participants who deferred their annual
cash bonus in exchange for an award of shares of equal value also received a matching award over an equal number of
share options. The exercise of these options is not subject to the attainment of performance conditions. These options are
exercisable up to the tenth anniversary of their grant.
(iv) Long-term incentive plan awards
These awards have been made to senior Group executives since 2001 and are described in section (b) below and in the
Directors’ remuneration report.
(v) Deferred bonus plan awards
These awards have been made under the Aviva Deferred Bonus Plan, and are described in section (b) below and in the
Directors’ remuneration report. The Group has established various employee share trusts to facilitate the delivery of shares
under the above schemes. Details of these trusts are given in note 30.
(vi) Annual bonus plan awards
These awards have been made under the Aviva Annual Bonus Plan 2005, and are described in section (b) below and in
the Directors’ remuneration report.
Aviva plc
Annual Report and
Accounts 2007
173
Financial
statements