BT 2002 Annual Report Download - page 120

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34. Employee share schemes continued
Options granted, exercised and lapsed under these share option schemes during the years ended 31 March 2000, 2001
and 2002 and options exercisable at 31 March 2000, 2001 and 2002 were as follows:
Savings
related
schemes
millions
Executive
option
plans
millions
Total
millions
Exercise
price
range
Weighted
average
exercise
price
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±1315p 319p
Lapsed (17) (1) (18) 168p±1351p 619p
Outstanding, 31 March 2001 204 12 216 168p±1351p 564p
Rights issue adjustment 21 2 23 ± ±
Granted ± 6 6 420p 420p
Exercised (83) (1) (84) 240p±523p 259p
Lapsed (50) ± (50) 240p±852p 622p
Outstanding pre demerger 92 19 111
Lapsed at demerger ± (19) (19) 299p±959p 595p
Outstanding at demerger 92 ± 92
Granted
a
± 26 26 231p±727p 413p
Exercised
a
± (1) (1) 231p±292p 232p
Lapsed
a
± (1) (1) 318p±602p 358p
Outstanding, 31 March 2002 (adjusted for rights issue)
b
92 24 116
Exercisable, 31 March 1999 ± 4 4 289p±460p 369p
Exercisable, 31 March 2000 ± 3 3 289p±460p 369p
Exercisable, 31 March 2001 ± 3 3 289p±460p 369p
Exercisable, 31 March 2002 47 7 54 218p±852p 395p
a
The options granted, lapsed and exercised post demerger under the Executive option plans relate to options over BT Group shares under the BT Group
Legacy Option Plan and the BT Group Global Share Option Plan. All other options are in respect of British Telecommunications plc shares.
b
In addition, as shown on page 118, options over 160 million shares were granted under the BT Group Employee Sharesave Scheme during the year. This
resulted in outstanding options over BT Group shares totalling 184 million and outstanding options over British Telecommunications plc shares totalling
92 million as at 31 March 2002.
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. 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 FTSE 100 index), at the beginning of the relevant performance period. 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. During the year, 162,772 shares vested in 12 participants in the
RSP.
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.
Notes to the financial statements
BT Group Annual Report and Form 20-F 2002 119