BT 1998 Annual Report Download - page 72

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O T E S T O T H E F I N A N C I A L S TAT E M E N T S
28. Employee share schemes (continued)
Options granted, exercised and lapsed under these share option schemes during the years ended 31 March 1996, 1997 and 1998
and options exercisable at 31 March 1996, 1997 and 1998 were as follows:
Savings Other share Weighted
related option Exercise average
schemes schemes Total price exercise
millions millions millions range price
000000005!!!0111!!!0111!!!0111!!!0111!!!0111
Outstanding, 31 March 1995 303 26 329 210p–460p 283p
Exercised (50) (7) (57) 210p–380p 230p
Lapsed (15) – (15) 210p–430p 305p
000000005!!!0111!!!0111!!!0111!!!0111!!!0111
Outstanding, 31 March 1996 238 19 257 211p–460p 294p
Granted 79 – 79 267p–300p 271p
Exercised (61) (3) (64) 211p–430p 251p
Lapsed (7) (2) (9) 244p–430p 299p
000000005!!!0111!!!0111!!!0111!!!0111!!!0111
Outstanding, 31 March 1997 249 14 263 243p–460p 297p
Granted 60 – 60 359p–596p 363p
Exercised (46) (6) (52) 243p–430p 275p
Lapsed (10) – (10) 243p–430p 313p
000000005!!!0111!!!0111!!!0111!!!0111!!!0111
Outstanding, 31 March 1998 253 8 261 262p–596p 316p
000000005!!!0111!!!0111!!!0111!!!0111!!!0111
Exercisable, 31 March 1996 – 13 13 211p–430p 333p
Exercisable, 31 March 1997 – 11 11 243p–460p 337p
Exercisable, 31 March 1998 – 7 7 262p–460p 362p
000000005!!!0111!!!0111!!!0111!!!0111!!!0111
Long-term remuneration and performance share plans
A long-term remuneration plan (LTRP) and a performance share plan (PSP) were introduced for employees of the group in
1994 and 1995, respectively. Under the plans, company shares are acquired by an employee share ownership trust and are
conditionally awarded to participants, although participants will only be entitled to these shares in full at the end of a five-year
period under the LTRP and the end of a three-year period, which may be extended to four or five years, under the PSP if, at
the end of the applicable period, the company has met the relevant pre-determined corporate performance measure and normally,
if the participants are still employed by the group. Awards of shares were granted in each of the years from 1994 to 1997 under
the LTRP and from 1995 to 1997 under the PSP. The corporate performance measure assesses the company’s overall
performance against those top 100 companies listed on the London Stock Exchange, as rated by the Financial Times
(the FT-SE 100 index), at the beginning of the relevant performance period.
At 31 March 1998, 5.8 million shares in the company (1997 – 3.5 million) were held in trust for the PSP and 4.6 million shares
(1997 – 2.7 million) were held in trust for the LTRP. Dividends earned on the shares during the conditional periods are reinvested
in company shares for the potential benefit of the participants. Additional information relating to the plans is as follows:
PSP LTRP Total
))))))%!!!!!!!5001111!!!5001111!!!0051111
1998 1997 1998 1997 1998 1997
£m £m £m £m £m £m
))))))%!!!!!!!5001111!!!5001111!!!0051111
Value of range of possible future transfers: nil to 37.9 15.6 29.5 11.6 67.4 27.2
Provision for the costs of the plans charged to the
profit and loss account in year 6.8 0.1 2.5 0.9 9.3 1.0
Nominal value of shares held in trust 1.5 0.9 1.1 0.7 2.6 1.6
Market value of shares held in trust 38.0 15.6 30.0 12.0 68.0 27.6
00000051111!!!5001111!!!5001111!!!0051111
The values of possible future transfers of shares under the plans were based on the company’s share price at 31 March 1998 of
650.0p (1997 – 445.5p). The provisions for the costs of the plans were based on best estimates of the company’s performance
over the plans’ performance periods, relating to those portions of the plan performance periods from commencement up to the
financial year end.