Aviva 2009 Annual Report Download - page 202

200
Aviva plc Notes to the consolidated financial statements continued
Annual Report and Accounts 2009
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 1999 to 2004, under the Aviva Executive Share Option Scheme or predecessor
schemes. Options granted between 1999 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 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 under the Aviva Long Term Incentive Plan 2005 and are described in Section (b) below and in the
Directors’ remuneration report.
(v) 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.
(vi) One Aviva, twice the value bonus plan awards
These are conditional awards first granted under the Aviva Annual Bonus Plan 2005 in 2008, and are described in section (b) below
and in the Directors’ remuneration report.
(b) Outstanding options and awards
(i) Share options
At 31 December 2009, options to subscribe for ordinary shares of 25 pence each in the Company were outstanding as follows:
Aviva Savings Related
Aviva Savings Related
Share Option Scheme
Option price
p
Number
of shares
Normally
exercisable
401
406
428
491
660,218
181,776
511,362
613,103
2009
2010
2009 or 2011
2010 or 2012
Hibernian Savings Related
Share Option Scheme (in euros)
Option price
c
Number
of shares
Normally
exercisable
630
719
879
27,912
19,535
77,610
2009
2010
2009 or 2011
Option price Number Normally
p of shares exercisable
593 1,128,769 2009, 2011 or 2013
563 1,414,950 2010, 2012 or 2014
410 3,884,416 2011, 2013 or 2015
316 13,417,632 2012, 2014 or 2016
Option price Number Normally
c of shares exercisable
830 103,800 2010 or 2012
509 321,194 2011 or 2013
360 1,366,852 2012 or 2014
RAC Savings Related Option price Number Normally
Share Option Scheme p of shares exercisable
354.94 24,210 2009