Barclays 2004 Annual Report Download - page 213

Barclays PLC Annual Report 2004
211
52 Differences between UK GAAP and US GAAP accounting principles (continued)
(e) Compensation arrangements (continued)
The range of exercise prices, weighted average fair values at the date of grant and the weighted average remaining contractual life for options
outstanding at the balance sheet date are as follows:
2004 2003
Weighted Weighted Weighted Weighted
Exercise average Weighted average Exercise average Weighted average
price exercise average remaining price exercise average remaining
range price fair value life range price fair value life
£££Years£££Years
ESOS(a) 1.76-4.45 4.13 1.13 4 1.76-4.45 4.11 1.14 4
SAYE(a) 1.57-4.11 3.69 1.84 4 1.57-4.11 3.59 1.92 3
ISOP(a) 3.26-5.62 4.59 1.71 8 3.26-5.62 4.56 1.71 8
BGI EOP(b) 6.11-20.11 12.74 4.12 8 6.11-10.92 9.51 3.23 8
Woolwich SAYE(a) 3.08-3.37 3.32 2.75 5 3.08-3.37 3.34 2.60 1
Woolwich ESOP(a) 3.29-4.22 3.80 2.68 5 3.29-4.22 3.80 2.69 6
ESAS(a)(c) ––4.15 3 ––3.99 3
Fair values for the ISOP, ESOS, SAYE, the Woolwich ESOP, the Woolwich SAYE and the BGI EOP are calculated at the date of grant using the appropriate
option pricing model. The significant weighted average assumptions used to estimate the fair value of the options granted in 2004 are as follows:
ISOP SAYE BGI EOP(b)
Risk-free interest rate 4.65% 5.12% 2.81%
Expected life (years) 555
Expected volatility 34% 25% 25%
ESAS provides nil cost awards on which the performance conditions are substantially completed at the date of grant. Consequently the fair value
of these awards is the market value at that date.
The range, weighted average exercise price, weighted average remaining contractual life and number of options outstanding, including those
exercisable at year-end (see page 210), are as follows:
Weighted Weighted
average average
exercise remaining Number of
price life options
Exercise Price Range £Years outstanding
ESOS(a)
£1.50 – £2.49 1.90 1 87,024
£2.50 – £3.49 3.47 1 97,176
£3.50 – £4.49 4.19 4 4,362,014
SAYE(a)
£2.50 – £3.49 3.14 1 17,032,334
£3.50 – £4.49 3.81 4 80,234,128
ISOP(a)
£2.50 – £3.49 3.26 8 25,568,000
£3.50 – £4.49 3.90 6 8,084,068
£4.50 – £5.49 4.97 8 103,895,508
£5.50 – £6.49 5.62 7 322,192
BGI EOP(b)
£6.00 – £13.99 10.15 7 5,605,697
£14.00 – £21.99 20.11 9 1,969,000
ESAS(a)(c) –3100,283,752
Woolwich SAYE(a)
£2.50 – £3.49 3.32 5 164,040
Woolwich ESOP(a)
£2.50 – £3.49 3.29 5 422,648
£3.50 – £4.49 3.92 5 1,878,016
Notes
(a) Options granted over Barclays PLC shares.
(b) Options granted over BGI UK Holdings Limited shares.
(c) ESAS is a nil cost award.