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Report on directors’ remuneration
68 BT Annual Report and Form 20-F 2003
Share options held at 31 March 2003
Number of shares under option
Option exercise
price per share
Usual date
from which
exercisable
Usual expiry
date1 April 2002 Granted Lapsed
f
31 March 2003
Sir Christopher Bland 314,244
a
––314,244 318p 01/05/04 01/05/11
B Verwaayen 1,121,121
b
––1,121,121 250p 11/02/05 11/02/12
– 935,830
c
–935,830 187p 29/07/05 29/07/12
– 561,500
d
–561,500 187p 29/07/05 29/07/12
1,121,121 1,497,330 2,618,451
P Danon – 601,610
c
–601,610 187p 29/07/05 29/07/12
– 360,970
d
–360,970 187p 29/07/05 29/07/12
– 962,580 – 962,580
A Green 567
f
– 567 –653p 19/11/01 13/05/02
– 2,905
e
–2,905 255p 14/08/05 13/02/06
– 568,190
c
–568,190 187p 29/07/05 29/07/12
– 340,910
d
–340,910 187p 29/07/05 29/07/12
567 912,005 567 912,005
I Livingston – 7,290
e
–7,290 227p 14/08/07 13/02/08
– 601,610
c
–601,610 187p 29/07/05 29/07/12
– 360,970
d
–360,970 187p 29/07/05 29/07/12
– 969,870 – 969,870
Dr P Reynolds 1,483
f
– 1,483 –465p 19/11/01 13/05/02
4,555
g
––4,555 218p 14/02/07 14/08/07
– 534,760
c
–534,760 187p 29/07/05 29/07/12
– 320,860
d
–320,860 187p 29/07/05 29/07/12
6,038 855,620 1,483 860,175
Total 1,441,970 5,197,405 2,050 6,637,325
All of the above options were granted for nil consideration. No options were exercised during the year.
a
Options granted under the GSOP. The option is not subject to a performance measure. It was a term of Sir Christopher Bland’s initial service contract
that (i) he purchased BT shares to the value of at least £1 million; and (ii) as soon as practicable after the purchase of the shares (‘invested shares’),
the company would grant a share option over shares to the value of at least £1 million. So long as Sir Christopher Bland is the legal and beneficial
owner of the invested shares purchased on 1 May 2001, the option will become exercisable on 1 May 2004. The option was granted on 22 June 2001.
b
Options granted under the GSOP on 11 February 2002. The exercise of options is subject to a performance measure being met. The performance
measure is relative TSR compared with the FTSE 100. BT’s TSR must be in the upper quartile for all of the options to become exercisable. At median,
40% of the options will be exercisable. Below that point, none of the options may be exercised.
c
Options granted under the GSOP on 29 July 2002. The exercise of options is subject to a performance measure being met. The performance measure
is relative TSR compared with the FTSE 100. Details are set out on page 60.
d
Options granted under the GSOP on 29 July 2002. The exercise of options is subject to a performance measure being met. The performance measure
is earnings per share. Details are set out on page 60.
e
Options granted on 24 June 2002 under the Employee Sharesave Scheme, in which all employees of the company are eligible to participate.
f
Options granted under the Employee Sharesave Scheme to Andy Green and Paul Reynolds on 23 June 2000 and 25 June 1998 respectively.
g
Options granted on 21 December 2001 under the Employee Sharesave Scheme, in which all employees of the company are eligible to participate.
h
Details of the GSOP and performance conditions are set out on page 60.
There were no unrealised gains on the above share options at 31 March 2003, based on the market price
of the shares at that date.
At 31 March 2002, Ben Verwaayen had unrealised gains of £339,000 in respect of 1,121,121 shares under
option under the GSOP. Paul Reynolds had unrealised gains of £3,000 in respect of 6,038 shares under option
under the Employee Sharesave Scheme.
The market price of the shares at 31 March 2003 was 157p (2002 – 280p) and the range during the 2003
financial year was 286.25p – 141p.