Barclays 2003 Annual Report Download - page 194

Notes to the Accounts
For the Year Ended 31st December 2003
192
61 Differences between UK GAAP and US GAAP accounting principles (continued)
(e) Compensation arrangements (continued)
The range, weighted average exercise price and number of options exercisable at the year end are as follows:
Weighted
average Number of
exercise price options
Exercise Price Range £ exercisable
ESOS(a)
£1.50 – £2.49 1.86 127,024
£2.50 – £3.49 3.47 415,000
£3.50 – £4.49 4.21 5,410,020
SAYE(a)
£1.50 – £2.49 1.99 456,580
£2.50 – £3.49 3.11 903,304
ISOP(a)
£3.50 – £4.49 3.91 9,755,471
BGI EOP(b)
£6.11 – £10.92 8.83 7,172,713
Woolwich SAYE(a)
£2.50 – £3.49 3.34 608,920
Woolwich ESOP(a)
£2.50 – £3.49 3.29 844,528
£3.50 – £4.49 3.92 3,571,924
Notes
(a) Options granted over Barclays PLC shares
(b) Options granted over BGI UK Holdings Limited shares
The expected dividends for all schemes are assumed to grow in line with the expected increases in share prices for the industry sector until exercise.
The ESOS is a long-term incentive scheme and was available by invitation to certain senior executives of the Group with grants usually made annually.
Options were issued at the market price at the date of the grant without any discount, calculated in accordance with the rules of the Scheme, and are
normally exercisable between three and ten years from that date. No further awards are made under ESOS.
Eligible employees in the UK may participate in the SAYE. Under this Scheme, employees may enter into contracts to save up to £250 per month
and, at the expiry of a fixed term of three, five or seven years, have the option to use these savings to acquire shares in the Company at a discount,
calculated in accordance with the rules of the Scheme. The discount is currently 20% of the market price at the date the options were granted.
The ISOP has been introduced to replace the ESOS. It is open by invitation to the employees and Directors of Barclays PLC. Options are granted at the
market price at the date of grant calculated in accordance with the rules of the Plan, and are normally exercisable between three and ten years from
that date. The final number of shares over which the option may be exercised will be determined by reference to set performance criteria. The
number of shares under option represents the maximum possible number that may be exercised.
The BGI Equity Ownership Plan is extended to senior employees of BGI. The exercise price of the options is determined by formula at the date of
grant and is not less than the market value of the share at the time of grant. The options are granted over shares in BGI UK Holdings Limited, a
subsidiary of Barclays Bank PLC. Options are normally not exercisable until vesting, with a third of the options held becoming exercisable at each
anniversary of grant. Options lapse ten years after grant. At 31st December 2003 13.5m (2002: 17.8m) options were outstanding under the terms of
the BGI Equity Ownership Plan enabling certain members of staff to subscribe for shares in BGI UK Holdings Limited between 2004 and 2013 at prices
between £6.11 and £10.92.
(f) Shareholders’ interest in the long-term assurance fund
The adjustment to US GAAP net income in 2003 of £(6)m (2002: £109m, 2001: £87m) reflects the recovery in equity markets which was largely offset
by the impact of the UK activity being closed to new business.