BT 2003 Annual Report Download - page 120

34. Employee share schemes continued
Options granted, exercised and lapsed under these share option schemes during the years ended 31 March 2001,
2002 and 2003 and options exercisable at 31 March 2001, 2002 and 2003 were as follows:
Savings
a
related
schemes
millions
Savings
b
related
schemes
millions
Executive
option
plans
millions
Total
millions
Exercise
price
range
Weighted
average
exercise
price
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 299p–959p 533p
Lapsed at demerger – (19) (19) 299p–959p 595p
Outstanding at demerger – 92 – 92 322p–852p 520p
Granted 160 – 26 186 218p–727p 413p
Exercised – – (1) (1) 231p–292p 232p
Lapsed – – (1) (1) 318p–602p 358p
Outstanding, 31 March 2002 160 92 24 276 218p–852p 448p
Granted 45 – 65 110 168p–255p 201p
Exercised – (8) – (8) 240p–332p 321p
Lapsed (41) (84) (4) (129) 187p–852p 432p
Outstanding, 31 March 2003 164 – 85 249
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
Exercisable, 31 March 2003 – – 11 11 255p–727p 491p
a
The BT Group Employee Sharesave schemes.
b
The BT Employee Sharesave schemes.
Incentive Share Plan and Retention Share Plan
The BT Incentive Share Plan (ISP) and the BT Retention Share Plan (RSP) were introduced for employees of
the group in 2000. 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 flexible.
Awards may vest in annual tranches. The shares are transferred at the end of a specified period, only if
the individual is still employed by the group. During the 2003 financial year, 374,039 (2002 – 162,772) shares
vested in 11 (2002 – 12) participants in the RSP.
Executive Share Plan and Deferred Bonus Plan
The BT Executive Share Plan (ESP) was introduced for employees of the group in 1994. Under the ESP, 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 five-year period under the ESP if, at the end
of the 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.
In 1994, 1995, 1996 and 1997 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.
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 FTSE 100 index, at the beginning of the relevant
performance period.
Notes to the financial statements
BT Annual Report and Form 20-F 2003 119