BT 2001 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2001 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

BT Annual report and Form 20-F 69
Unrealised gains on the above share options at 31 March 2001, based on the market price of the shares at that date, excluding
the employee compensation for the special dividend which is discretionary in respect of directors’ share options, were as shown
below:
Options exercisable Options not exercisable
Unrealised gains Unrealised gains
Number of
shares
2001
£000
2000(a)
£000
Number of
shares
2001
£000
2000(a)
£000
Sir Iain Vallance 82,487 125 673 – ––
Sir Peter Bonfield – –– 6,460 16 59
B Cockburn – –– 3,330 –22
R P Brace 78,540 67 589 – –44
(a) Based on options outstanding at 31 March 2000 and the market price of the shares at that date.
The market price of the shares at 31 March 2001 was 510p (2000 ^ 1,175p) and the range during the 2001 ¢nancial year was 469p
to 1,172p.
Details of the company’s ordinary shares provisionally awarded to directors, as participants under the ESP and as awards of
Incentive Shares and Retention Shares (note 33 to the ¢nancial statements), are as follows:
Total number of award shares(a) Range of value of award(c)(d)
1 April
2000 Awarded Vested Lapsed
Dividends
reinvested
31 March
2001
Minimum
£000
Maximum
£000
Sir Peter Bonfield 390,207 179,516 – – 16,172 585,895 304 2,988
P R Hampton(d) – 59,361 – – 828 60,189 307 307
B Cockburn 96,935 – – – 2,657 99,592 – 508
R P Brace(b) 269,954 43,728 41,552 77,449 6,592 201,273 192 1,026
Sir Alan Rudge(b) 48,480 – 48,480 – – –––
Total 805,576 282,605 90,032 77,449 26,249 946,949 803 4,829
(a) Excluding shares purchased by each director and held under the ESP (see page 68).
(b) On 1 August 2000, total awards of 41,552 and 48,480 shares under the ESP vested in Robert Brace and Sir Alan Rudge, respectively. The five-year performance
cycle for those awards ended on 31 July 2000 and, on the basis of BT’s TSR position against the FTSE 100, 100% of the shares under award, including
reinvested dividends, vested on 1 August 2000.
(c) Based on the market value of the company’s shares at 31 March 2001. The minimum figure represents those shares held at 31 March 2001 which will transfer to
each director under the ESP at the end of year five of the plan (2001 to 2004) and at the end of year three for Incentive Shares (2003). The maximum figure
represents all shares held at 31 March 2001 which will transfer to each director at the end of year five of the ESP (2001 to 2004) and at the end of year three for
Incentive Shares (2003) provided the corporate performance measure has been fully met. Normally, shares will transfer only if the individual is still employed by
the group. However, the plans give discretion to preserve awards of shares on cessation.
(d) Philip Hampton was granted an award of Retention Shares over 59,361 shares, equivalent to 100% of salary. This award will vest, provided that he is still
employed by the company, on 1 November 2003, the third anniversary of the date of the commencement of his employment with the company. The vesting of
the shares is not subject to the satisfaction of a corporate performance target.
(e) At the next grant to participants of awards of Incentive Shares, Sir Christopher Bland will be granted an award equal to twice salary. After the grant of that award
of Incentive Shares, he will not be eligible to receive further awards of Incentive Shares, Retention Shares or grants of Share Options until 1 May 2004.
Details of awards of shares under the ESP and awards of Incentive Shares which would vest based on BT’s TSR compared with
the other companies in the FTSE 100 for the relevant performance period up to 31 March 2001 are as follows:
31 March 2001 31 March 2000
No. of shares
under award
Expected
vesting date TSR position
Percentage of
shares vesting TSR position
Percentage of
shares vesting
Sir Peter Bonfield 125,210 2001 28 100 3 100
105,964 2002 34 90 3 100
76,603 2003 38 80 5 100
184,974 2003 91 – – –
68,205 2004 86 – – –
B Cockburn 53,028 2003 38 80 5 100
46,564 2004 86 – 28 100
R P Brace 77,625 2001 28 100 3 100
57,637 2002 34 90 3 100
38,887 2003 38 80 5 100