BT 2001 Annual Report Download - page 116

33. Employee share schemes (continued)
Options granted, exercised and lapsed under these share option schemes during the years ended 31 March 1999, 2000 and 2001
and options exercisable at 31 March 1999, 2000 and 2001 were as follows:
Savings
related
schemes
millions
Other
share option
schemes
millions
Total
millions
Exercise
price
range
Weighted
average
exercise
price
Outstanding, 31 March 1998 253 8 261 262p–596p 316p
Granted 45 1 46 518p–1053p 536p
Exercised (46) (3) (49) 262p–583p 321p
Lapsed (15) – (15) 265p–773p 328p
Outstanding, 31 March 1999 237 6 243 267p–1053p 356p
Granted 33 1 34 844p–1206p 862p
Exercised (36) (1) (37) 267p–949p 333p
Lapsed (8) – (8) 267p–1043p 366p
Outstanding, 31 March 2000 226 6 232 267p–1206p 432p
Granted 41 8 49 534p–885p 751p
Exercised (46) (1) (47) 168p–1351p 319p
Lapsed (17) (1) (18) 168p–1351p 619p
Outstanding, 31 March 2001 204 12 216 168p–1351p 564p
Exercisable, 31 March 1999 – 4 4 289p–460p 369p
Exercisable, 31 March 2000 – 3 3 289p–460p 368p
Exercisable, 31 March 2001 – 3 3 289p–460p 368p
BT Incentive Share Plan and BT Retention Share Plan
The BT Incentive Share Plan (ISP) and the BT Retention Share Plan (RSP) were introduced for employees of the group in 2001.
Under the plans, company shares are acquired by an employee share ownership trust and are conditionally awarded to participants.
Under the ISP participants are normally only entitled to these shares in full at the end of a three-year period if the company has
met the relevant pre-determined corporate performance measure and if the participants are still employed by the group. If the
company has exceeded the pre-determined corporate performance measure the participants may be awarded up to double the shares
conditionally awarded. Under the RSP the length of retention period before awards vest is £exible. Awards may vest in annual
tranches. The shares are transferred at the end of a speci¢ed period, only if the individual is still employed by the group. 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.
BT Executive Share Plan, BT Performance Share Plan and BT Deferred Bonus Plan
The BT Executive Share Plan (ESP) and the BT 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. Participants are only entitled to these shares in full at the end of a ¢ve-year period under
the ESP and the end of a three-year period, under the PSP if, at the end of the applicable period, the company has met the
relevant pre-determined corporate performance measure. Awards of shares were granted in each of the years from 1994 to 1999
under the ESP and from 1995 to 1997 under the ¢rst performance cycle of the PSP.
In 1994, 1995 and 1996 ESP participants could invest 50% of their annual bonus in the ESP for the purchase of shares. These
invested shares were matched by the company.
Further awards of shares were granted in 1998 and 1999 under the second three-year performance cycle of 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.
The second ¢ve-year performance cycle of the ESP ended on 31 July 2000 (¢rst: 31 July 1999) and on the basis of the
corporate measure, the company’s Total Shareholder Return target relative to the other companies in the FT-SE 100, 100%
(1999: 100%) of the shares vested on 1 August 2000 in 54 participants (1999: 25 participants) and 0.7 million shares
(1999: 0.6 million shares) were transferred to those participants.
Notes to the financial statements
116 BT Annual report and Form 20-F