BT 2004 Annual Report Download - page 70

Vesting of outstanding share awards and options
Details of options granted under the GSOP and awards of shares under the ESP and ISP which would have vested
based on BT Group’s TSR compared with the other companies in the FTSE 100 for the relevant performance
period up to 31 March 2004 are as follows:
31 March 2004 31 March 2003
Expected
vesting date TSR position
Percentage of
shares vesting TSR position
Percentage of
shares vesting
ESP 1999
a
31/03/04 90 – 87 –
ISP 2001
b
31/03/04 83 – 73 –
GSOP 2002 29/07/05 77 – 61 –
GSOP 2003 24/06/06 93 – ––
a
The ESP 1999 performance measurement period ended on 31 March 2004. At that time, BT’s position was at 90th position. As a consequence, all
awards have lapsed.
b
The ISP 2001 performance measurement period ended on 31 March 2004. At that time, BT’s position was at 83rd position. As a consequence, all
awards lapsed.
Options granted to executive directors under the GSOP during the 2003 financial year as an additional incentive,
whose exercise is subject to a 35% compound annual growth in earnings per share, before goodwill amortisation
and exceptional items, being achieved over three years (equivalent to 22p per share at the end of the 2005
financial year), are not included in the above table, but are included in the table on page 67. Earnings per share,
before goodwill amortisation and exceptional items, for the 2004 financial year are 16.9p per share (2003 –
14.2p). The compound annual growth in earnings per share over the 2003 and 2004 financial years was 38.6%.
Deferred Bonus Plan awards at 31 March 2004
The following deferred bonuses have been awarded to the directors under the DBP. These shares will normally be
transferred to participants at the end of the three-year deferred period if those participants are still employed
by BT Group.
1April 2003 Awarded Vested
Dividends
re-invested
Total number
of award shares
31 March
2004
Expected
vesting date
Market Price
at grant
Market Price
at vesting
Monetary value
of vested
award
£000
B Verwaayen 76,996 – – 3,187 80,183 01/08/05 202.0p – –
– 425,614
c
– 17,624 443,238 01/08/06 199.5p – –
P Danon 22,292 – – 762 23,054 01/08/04 267.912p – –
75,983 – – 3,146 79,129 01/08/05 202.0p – –
– 84,586
c
– 3,502 88,088 01/08/06 199.5p – –
A Green 10,924 – 10,924
ad
––– 267.912p 197.215p 22
45,179 – – 1,544 46,723 01/08/04 267.912p – –
50,654 – – 2,097 52,751 01/08/05 202.0p – –
– 76,803
c
– 3,180 79,983 01/08/06 199.5p – –
I Livingston – 84,586
c
– 3,502 88,088 01/08/06 199.5p – –
Dr P Reynolds 4,419 – 4,419
ad
––– 267.912p 197.215p 9
32,813 – – 1,121 33,934 01/08/04 267.912p – –
45,590 – – 1,886 47,476 01/08/05 202.0p – –
– 72,285
c
– 2,992 75,277 01/08/06 199.5p – –
Former director
b
Sir Peter Bonfield 86,725 – 86,725
ad
––– 267.912p 197.215p 171
152,502 – – 5,216 157,718 01/08/04 267.912p – –
a
Andy Green, Paul Reynolds and Sir Peter Bonfield received 70p per share on their awards vesting as compensation for the difference between the price
of a BT share at the date of vesting and the demerger when the awards should have vested. The Remuneration Committee determined that the awards
should continue until their normal vesting date and that participants should be compensated if there was a subsequent fall in the share price.
b
Under the terms of his service agreement, the awards granted to Sir Peter Bonfield were preserved on his leaving until the normal vesting date.
c
Awards granted on 24 June 2003.
d
Awards granted on 2 August 2000, vested on 4 August 2003.
e
Details of the DBP are set out on page 59.
BT Annual Report and Form 20-F 200469 Report on directors’ remuneration