BT 2005 Annual Report Download - page 67

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The market price of the shares at 31 March 2005 was
205.5p (2004 – 177p) and the range during the financial
year 2004/05 was 169.25p – 216.25p.
As at 31 March 2005, one third of Hanif Lalani’s GSOP
2003 option (granted under the Special Incentive Award)
was exercisable giving an unrealised gain of £2,105.
There were no further unrealised gains on the above share
options at 31 March 2005 (2004 – nil), based on the
share price of the shares at that date.
All of Mr Danon’s options lapsed on his last day of
service, 28 February 2005.
Share awards under long-term incentive schemes held during the year ended 31 March 2005
Details of the company’s ordinary shares provisionally awarded to directors, as participants under the ISP and RSP are
as follows:
1April 2004
(or date of
appointment) Awarded
a
Dividends
re-invested Vested
f
Lapsed
Total
number of
award shares
31 March
2005
Expected
vesting date
Price on
grant
Market Price
at vesting
Monetary
value of
vested
award
£000
Sir Christopher Bland
RSP 2003 286,100 – 13,653 – – 299,753 2007 182p – –
B Verwaayen
ISP 2004 – 241,284 11,514 – – 252,798 31/03/07 193.42p – –
RSP 2001
b
832,869 – 39,746 872,615 – –– 257.814p 207.75p 1,813
A Green
ISP 2004 – 146,494 6,990 – – 153,484 31/03/07 193.42p – –
H Lalani
d
ISP 2004 70,912 – 1,312 – – 72,224 31/03/07 193.42p – –
I Livingston
ISP 2004 – 155,111 7,401 – – 162,512 31/03/07 193.42p – –
RSP 2002
c
350,664 – 8,366 175,332 – 183,698 05/04/05 273.5p 181.75p 319
RSP 2002 117,691 – 5,616 – – 123,307 20/05/05 202.0p – –
Dr P Reynolds
ISP 2004 – 137,877 6,579 – – 144,456 31/03/07 193.42p – –
Former director
Pierre Danon
e
ISP 2004 – 155,111 7,401 – 162,512 –– 193.42p – –
The size of awards granted during the financial year 2004/05 was calculated using the average middle market price of a BT share for the three days prior
to the grant.
a
Awards under the ISP were made on 24 June 2004. The awards will vest subject to a performance condition being met. The performance measure is
relative TSR compared with a group of companies from the European Telecom Sector. BT’s TSR must be in the upper quartile for all of the awards to
vest. At median, 25% of the awards will vest. Below that point, none of the awards will vest.
b
The RSP awards granted on 11 Februray 2002, vested on 11 February 2005.
c
The second tranche of the RSP award granted on 30 May 2002 vested on 21 May 2004.
d
Date of appointment, 7 February 2005.
e
The award granted under the ISP on 24 June 2004 and the subsequent dividends re-invested, lapsed on 28 February 2005 when Pierre Danon resigned
as a director.
f
Vesting of RSP awards is not subject to a performance condition being met.
Vesting of outstanding share awards and options
Details of options granted under the GSOP in the financial years 2002/03 and 2003/04 which would vest based on
BT Group’s TSR compared with the other companies in the FTSE 100 for the relevant performance period up to
31 March 2005 and details of options granted under the GSOP in the financial year 2004/05 and awards of shares
under the ISP in the financial year 2004/05 which would vest based on BT Group’s TSR compared with a group of
companies from the European Telecom Sector for the relevant performance period up to 31 March 2005 are as follows:
31 March 2005 31 March 2004
Expected
vesting date TSR position
Percentage of
shares vesting TSR position
Percentage of
shares vesting
ISP 2004 31/03/07 11 – ––
GSOP 2002 29/07/05 74 – 77 –
GSOP 2003 24/06/06 84 – 93 –
GSOP 2004 24/06/07 11 – ––
None of these outstanding options, or awards of shares under the ISP, which are subject to the TSR performance
conditions, would vest.
Options granted to executive directors under the GSOP during the financial year 2002/03 as an additional incentive,
whose exercise was 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 financial year
2004/05), are not included in the above table, but are included in the table on page 65. Earnings per share, before
goodwill amortisation and exceptional items for the financial year 2004/05 are 18.1p per share (2004 – 16.9p). The
compound annual growth in earnings per share over the three years did not meet the target and as a result all of the
options have lapsed.
66 BT Group plc Annual Report and Form 20-F 2005 Report on directors’ remuneration