Aviva 2013 Annual Report Download - page 181

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
179
Notes to the consolidated financial statements continued
31 – 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:
2013
£m
2012
£m
The allotted, called up and fully paid share capital of the Company at 31 December 2013 was:
2,946,939,622 (2012: 2,945,972,261
)
ordinary shares of 25 pence each 736 736
(b) During 2013, a total of 967,361 ordinary shares of 25 pence each were allotted and issued by the Company as follows:
2013 2012
Number of shares
Share
Capital
£m
Share
Premium
£m Number of shares
Share
Capital
£m
Share
Premium
£m
At 1 January 2,945,972,261 736 1,165 2,905,712,938 726 1,173
Shares issued under the Group’s Employee and Executive
Share Option Schemes 967,361 — — 3,335,566 1 1
Shares issued in lieu of dividends — — — 36,923,757 9 (9)
At 31 December 2,946,939,622 736 1,165 2,945,972,261 736 1,165
Ordinary shares in issue in the Company rank pari passu with any new ordinary shares issued in the Company. All the ordinary
shares in issue carry the same right to receive all dividends and other distributions declared, made or paid by the Company.
The issue of shares in lieu of cash dividends is considered a bonus issue under the terms of the Companies Act 2006 and the
nominal value of the shares is charged to the share premium account.
32 – Group’s share plans
This note describes the Group’s various equity compensation plans, and shows how the Group values the options and awards
of shares in the Company.
(a) Description of the plans
The Group maintains a number of active share option and award plans and schemes (the Group’s share plans). These are as follows:
(i) Savings-related options
These are options granted under the HMRC-approved save as you earn (SAYE) share option schemes in the UK and the Irish
revenue-approved SAYE share option scheme 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. Options granted in 2012 and 2013 are
normally exercisable following the third or fifth anniversary.
(ii) Executive share options
These are options granted on various dates until 2004 under the Aviva executive share option plan. Options granted between 2001
and 2004 were subject to the satisfaction of conditions relating to both the Company’s return on equity (ROE) and its relative total
shareholder return (TSR). The performance was measured over a three-year performance period and the options are normally
exercisable between the third and tenth anniversary of their grant.
(iii) Long-term incentive plan awards
These awards have been made under the Aviva long term incentive plan 2011, and are described in section (b) below and in the
directors’ remuneration report.
(iv) Annual bonus plan awards
These awards have been made under the Aviva annual bonus plan 2011 and are described in section (b) below and in the
directors’ remuneration report.
(v) Recruitment and retention share award plan awards
These are conditional awards granted under the Aviva recruitment and retention share award plan in relation to the recruitment or
retention of senior managers excluding executive directors. The awards vest in tranches on various dates and vesting is conditional
upon the participant being employed by the Group on the vesting date and not having served notice of resignation. If a
participant’s employment is terminated due to resignation or dismissal, any tranche of the award which has vested within the 12
months prior to the termination date will be subject to clawback and any unvested tranches of the award will lapse in full. No new
Aviva plc ordinary shares will be issued or transferred from treasury to satisfy vested awards under this plan.
(vi) Aviva Investors Long term incentive plan awards
These awards have been made under the Aviva Investors Holdings Limited 2009 long term incentive plan, a long term profit
sharing arrangement for key Aviva Investors employees. Awards will vest on the 3rd anniversary of the grant, subject to achieving
performance conditions.