Aviva 2013 Annual Report Download - page 183

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
181
Notes to the consolidated financial statements continued
32 – Group’s share plans continued
(ii) Share awards
At 31 December 2013, awards issued under the Company’s executive incentive plans over ordinary shares of 25 pence each in the
Company were outstanding as follows:
Aviva long-term incentive plan 2011 Number of shares Vesting period
6,430,603 2011 to 2013
9,186,213 2012 to 2014
11,993,474 2013 to 2015
Aviva annual bonus plan 2011 Number of shares Vesting period
1,799,593 2011 to 2013
3,248,634 2012 to 2014
3,367,346 2013 to 2015
Aviva recruitment and retention share awards plan Number of shares Vesting period
20,784 2014
85,358 2014 and 2015
34,050 2015
62,441 2014, 2015 and 2016
Aviva Investors Holdings Limited 2009 long term incentive plan Number of shares Vesting period
418,156 2013 to 2015
The vesting of awards under the Aviva long term incentive plan 2011 is subject to the attainment of performance conditions as
described in the directors’ remuneration report. Shares which do not vest will lapse.
No performance conditions attach to the awards under the Aviva annual bonus plan 2011 or most of the awards under the
recruitment and retention share awards plan.
7,215 of the shares awarded under the recruitment and retention share awards plan which vest in 2015 are subject to the
attainment of the same performance conditions that apply to the 2013 grant under the Aviva long-term incentive plan 2011 as
outlined in the director’s remuneration report. Shares which do not vest will lapse.
The vesting of the awards under the Aviva Investors Holdings Limited long-term incentive plan are subject to Aviva Investors
Holdings Limited achieving ROCE of 27% per annum over a three year performance period. Shares which do not vest will lapse.
(iii) Shares to satisfy awards and options
Since July 2008, it has been the Company’s practice to satisfy all awards and options using shares purchased in the market and
held by employee trusts except where local regulations make it necessary to issue new shares. Further details are given in note 33.
(c) Movements in the year
A summary of the status of the option plans as at 31 December 2012 and 2013, and changes during the years ended on those
dates, is shown below.
2013 2012
Number of
options
Weighted
average
exercise
price
p
Number of
options
Weighted
average
exercise
price
p
Outstanding at 1 January 25,212,210 298.40 30,073,984 321.55
Granted during the year 2,986,293 312.00 6,236,944 269.02
Exercised during the year (2,442,874) 304.57 (2,862,952) 315.24
Forfeited during the year (1,171,735) 274.84 (2,187,371) 337.96
Cancelled during the year (1,355,364) 274.74 (3,282,095) 300.34
Expired during the year (3,158,682) 403.02 (2,766,300) 432.85
Outstanding at 31 December 20,069,848 286.18 25,212,210 298.40
Exercisable at 31 December 846,226 410.53 1,943,130 424.99
(d) Expense charged to the income statement
The total expense recognised for the year arising from equity compensation plans was as follows:
2013
£m
2012
£m
Equity-settled expense 37 42
Cash-settled expense 2 5
Total (note 11(b)) 39 47
(e) Fair value of options and awards granted after 7 November 2002
The weighted average fair values of options and awards granted during the year, estimated by using the binomial option pricing
model, were £1.26 and £2.15 (2012: £0.70 and £2.61) respectively.