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76 BT GROUP PLC ANNUAL REPORT & FORM 20-F
REPORT OF THE DIRECTORS REPORT ON DIRECTORS’ REMUNERATION
Share awards under long-term incentive plans held at 31 March 2010, or date of appointment, if later
Details of the company’s ordinary shares provisionally awarded to directors, as participants under the ISP and RSP are as follows:
Total
number of Monetary
award value of
shares Market vested
1 April Dividends 31 March Normal Price price award
2009 Awarded re-invested Vested Lapsed 2010 vesting date on grant at vesting £000
I Livingston
ISP 2007a383,307 –9,961 –393,268 –31/3/2010 321.67p – –
ISP 2008b1,397,025 –36,307 ––1,433,332 31/3/2011 203p – –
ISP 2009c– 1,985,723 51,606 – – 2,037,329 31/3/2012 128.41p – –
T Chanmugam
ISP 2007a92,411 –2,400 –94,811 –31/3/2010 317.67p – –
ISP 2008b145,179 –3,772 ––148,951 31/3/2011 203p – –
ISP 2009c– 924,723 24,032 – – 948,755 31/3/2012 128.41p – –
RSP 2007d97,772 –2,540 100,312 – –20/3/2010 300p 121.07 121
G Patterson
ISP 2007a124,941 –3,246 –128,187 –31/3/2010 317.67p – –
ISP 2008b684,815 –17,797 – – 702,612 31/3/2011 203p – –
ISP 2009c– 973,393 25,296 – – 998,689 31/3/2012 128.41p – –
Former director
H Lalani
ISP 2007a251,887 –6,546 –258,433 –31/3/2010 321.67p – –
ISP 2008b801,235 –20,823 –822,058 –31/3/2011 203p – –
ISP 2009c– 1,138,870 29,597 –1,168,467 –31/3/2012 128.41p – –
aAwards under the ISP granted in 2007 vest subject to meeting a performance condition, on 31 March 2010. The performance measure is relative TSR compared with a group of 15 companies from the
European Telecom Sector as at 1 April 2007. BT’s TSR had to be in the upper quartile for all the shares to vest. At median, 25% of the shares would vest. At 31 March 2010, BT’s TSR was at 14th position
against the comparator group. As a result all of the awards lapsed on that date.
bAwards under the ISP granted on 25 June 2008. The number of shares subject to awards was calculated using the average middle market price of a BT share for the three days prior to the grant. The awards
will vest subject to meeting a performance condition, on 31 March 2011. The performance measure is relative TSR compared with a group of 15 companies from the European Telecom Sector as at 1 April
2008. BT’s TSR must be in the upper quartile for all the shares to vest. At median, 25% of the shares would vest. Below that point, no shares would vest.
cAwards under the ISP granted on 7 August 2009. The number of shares subject to awards was calculated using the average middle market price of a BT share for the three days prior to the grant. 50% of
each award of shares is linked to TSR compared with a group of 25 companies and 50% is linked to a three-year cumulative free cash flow measure. The awards will vest subject to meeting the two
performance conditions, on 31 March 2012.
dTony Chanmugam was granted an RSP award on 20 March 2007. The award vested in full on 20 March 2010. Vesting of RSP awards is not subject to a performance target being met.
eHanif Lalani left the company on 31 March 2010. On that date, all of his outstanding awards under the ISP lapsed.
Vesting of outstanding share awards and options
31 March 2010 31 March 2009
Free cash Percentage of Percentage of Percentage of
Vesting date flow position shares vesting TSR position shares vesting TSR position shares vesting
ISP 2006a31/03/2009 N/A N/A 14 0% 14 0%
ISP 2007b31/03/2010 N/A N/A 14 0% 14 0%
ISP 2008c31/03/2011 N/A N/A 14 0% 14 0%
ISP 2009d31/03/2012 100% 50% 10 31% – –
aThe performance period for the ISP 2006 ended on 31 March 2009. BT’s TSR position was at 14th position against the European Telecom Sector of 17 companies. As a result all the shares lapsed on that
date.
bThe performance period for the ISP 2007 ended on 31 March 2010. BT’s TSR position was at 14th position against the European Telecom Sector of 15 companies. As a result all the shares lapsed on that
date.
cThe performance period for the ISP 2008 ends on 31 March 2011.
dThe performance period for the ISP 2009 ends on 31 March 2012. 50% of each award of shares is linked to TSR; and 50% is linked to a three-year cumulative free cash flow measure. (See Long-term share-
based incentives on page 69). The awards will vest subject to meeting the two performance conditions on 31 March 2012.