BT 2006 Annual Report Download - page 105

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31. SHARE BASED PAYMENT PLANS continued
Outstanding options
Options outstanding under all share option plans at 31 March 2006 and 2005, together with their exercise prices and dates, were
as follows:
2006 2005
Option price 2006 Option price 2005
Normal dates of exercise per share millions per share millions
BT Group Employee Sharesave plans
2005 ––218p-255p 20
2006 154p-173p 20 154p-173p 22
2007 146p-227p 50 146p-227p 57
2008 154p-192p 103 154p 92
2009 146p 66 146p 71
2010 171p 40 ––
Total 279 262
BT Group Legacy Option Plan
2001-2011 318p-602p 14 318p-602p 15
Total 14 15
BT Group Global Share Option Plan
2005-2012 163p-263p 45 163p-263p 51
2004-2014 176p-199.5p 100 176p-199.5p 110
2007-2015 179p-215p 28 179p-215p 30
Total 173 191
Total outstanding options 466 468
The options outstanding under all share option plans at 31 March 2006 and 2005 have weighted average remaining contractual
lives as follows:
Executive plans
2006 2005
Range of
exercise
prices
Weighted
average
exercise
price
Number of
outstanding
share
options
(millions)
Weighted
average
contractual
remaining life
Range of
exercise
prices
Weighted
average
exercise
price
Number of
outstanding
share
options
(millions)
Weighted
average
contractual
remaining life
150p - 249p 195p 171 89 months 150p - 249p 195p 190 100 months
250p - 349p 302p 8 65 months 250p - 349p 304p 8 77 months
350p - 650p 552p 8 53 months 350p - 650p 554p 8 65 months
Total 187 206
All-employee plans
2006 2005
Range of
exercise
prices
Weighted
average
exercise
price
Number of
outstanding
options
(millions)
Weighted
average
contractual
remaining life
Range of
exercise
prices
Weighted
average
exercise
price
Number of
outstanding
options
(millions)
Weighted
average
contractual
remaining life
100p - 199p 158p 243 39 months 100p - 199p 154p 203 47 months
200p - 300p 220p 36 18 months 200p - 300p 222p 59 22 months
Total 279 262
Other share based payment plans
Incentive Share Plan, Deferred Bonus Plan and Retention Share Plan
The BT Group Incentive Share Plan (ISP) and the BT Group Retention Share Plan (RSP) were introduced for employees of the group
in 2001. Under the plans, company shares are conditionally awarded to participants.
Under the ISP, participants are 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. The corporate
performance measure is BT’s total shareholder return (TSR) measured against a group of companies from the European Telecom
Sector at the beginning of the relevant performance period. The ISP was operated in the 2006 financial year with 1,382
participants receiving awards over 23,183,408 shares (2005: 1,406 participants received awards over 12,654,013 shares). Awards
under the ISP have been valued using Monte Carlo Simulations. TSRs were generated for BT and the comparator group at the end
of the three-year performance period, using each company’s volatility and dividend yield, as well as the cross correlations between
pairs of stocks. Simulations were run using averaged one and three-year volatility and dividend yield for BT and the comparator
group. The weighted average fair value of awards of shares granted under the ISP has been estimated at 124p (2005: 98p).
Notes to the consolidated financial statements BT Group plc Annual Report and Form 20-F 2006 103