BT 2001 Annual Report Download - page 117

33. Employee share schemes (continued)
The ¢rst three-year performance cycle of the PSP ended on 31 July 1998 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, 90% of the shares vested on 19 August 1998 in
745 participants and 5.0 million shares were transferred to those participants.
The second and ¢nal three-year performance cycle of the PSP ended on 31 March 2001 and on the basis of the corporate
measure, the company’s Total Shareholder Return target relative to other companies in the FT-SE 100, 80% of the shares will
vest on 1 August 2001 in 1,560 participants and 2.0 million shares will transfer to those participants.
The BT Deferred Bonus Plan (DBP) was established in 1998 and awards were granted to employees of the group in July 1998
and 1999. Under this plan, shares in the company are acquired by an employee share ownership trust and transferred to
participants at the end of three years if he or she has continued to be employed by the group throughout that period.
At 31 March 2001, 19.1 million shares (2000 ^ 19.3 million) in the company were held in trust for employee share schemes, of
which 9.7 million shares were held for the ISP, 0.4 million shares were held for the RSP, 5.4 million shares (2000 ^ 5.9 million)
were held for the ESP, 2.0 million shares (2000 ^ 2.2 million) were held for the PSP and 1.6 million shares (2000 ^ 0.9 million)
were held for the DBP. Dividends or dividend equivalents earned on the shares during the conditional periods are reinvested in
company shares for the potential bene¢t of the participants. Additional information relating to the plans is as follows:
Year ended 31 March 2001
ISP
£m
RSP
£m
ESP
£m
PSP
£m
DBP
£m
Total
£m
Value of range of possible future transfers: nil to 25.2 2.2 24.7 10.2 6.7 69.0
Provision for the costs of the plans charged to the profit and loss account in year – 1.5 5.8 (1.7) 2.5 8.1
Nominal value of shares held in trust 2.4 0.1 1.4 0.5 0.4 4.8
Market value of shares held in trust 49.7 2.2 27.3 10.2 8.3 97.7
Year ended 31 March 2000
ISP
£m
RSP
£m
ESP
£m
PSP
£m
DBP
£m
Total
£m
Value of range of possible future transfers: nil to – – 66.9 25.3 10.4 102.6
Provision for the costs of the plans charged to the profit and loss account in year – – 6.4 14.4 7.7 28.5
Nominal value of shares held in trust – – 1.5 0.6 0.2 2.3
Market value of shares held in trust – – 69.4 25.4 10.4 105.2
In addition, 10.3 million shares were held at 31 March 2000 in trust for future awards under employee share schemes. These
shares had a nominal value of »2.6 million and a market value of »122 million at 31 March 2000.
The values of possible future transfers of shares under the plans were based on the company’s share price at 31 March 2001
of 510p (2000 ^ 1,175p). The provisions for the costs of the ISP, RSP, ESP and PSP were based on best estimates of the company’s
performance over the plans’ conditional periods, relating to those portions of the plan conditional periods from commencement up
to the ¢nancial year end.
BT Employee Stock Purchase Plan
An employee stock purchase plan was established in 1998 for employees in the United States. Under this plan, employees may
purchase American Depositary Shares (ADSs) on a monthly basis at a price equal to the lower of (i) 85% of the average trading
price of the ADSs on the New York Stock Exchange on the date on which the purchase rights are granted and, (ii) 85% of the
average trading price of the ADSs on the date of purchase. During the year ended 31 March 2001, the discounted price was
between US$65.98 and US$154.88 (2000 --- US$92.20 and US$170.21) per ADS and 0.1 million shares (2000 --- 0.8 million) were
issued under this plan.
BT Annual report and Form 20-F 117