Barclays 2007 Annual Report Download - page 231

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Financial statements
Barclays PLC Annual Report 2007 229
44 Share-based payments (continued)
Absa Group Limited Share Incentive Trust (AGLSIT)
In terms of the rules of Absa Group Limited Share Incentive Trust the maximum number of shares which may be issued or transferred and/or in respect of
which options may be granted to the participants shall be limited to shares representing 10% of the total number of issued shares. Options are allocated
to Absa employees according to the normal Human Resources talent management process. The options issued up to August 2005 had no performance
criteria linked to them and vested in equal tranches after three, four and five years respectively. No dividends accrue to the option holder over the period.
The options expire after a period of ten years from the issuing date. Options issued since August 2005 have vesting performance criteria associated with
them, which require headline earnings per share to exceed an agreed benchmark over a three-year period from July 2005 for the options to vest
Absa Group Limited Share Ownership Trust (AGLSOT)
The Absa Group Limited Share Ownership Trust (AGLSOT) enabled all Absa employees to participate in a one-off offer to purchase 200 redeemable
cumulative option-holding preference shares. Each redeemable preference share carries the option to acquire one Absa ordinary share. Options vest after
three years and lapse after five years from the date of issue. Exercise may only occur in lots of 100 and within a price range varying from ZAR48 to ZAR69
(£3.40-£4.89) dependent on the 30-day volume weighted trading price on the JSE Limited. Options are redeemed by Absa on the final exercise date.
Absa Group Limited Executive Share Award Scheme (AGLESAS)
For certain employees of Absa an element of their annual bonus is in the form of a deferred award of a provisional allocation of Absa Group Limited shares
under Absa ESAS. The total value of the bonus made to the employee of which ESAS is an element is dependent upon the business unit and individual
employee performance. The ESAS element of the annual bonus must be held for at least three years. Additional bonus shares are subsequently awarded
to recipients of the provisional allocation and vest upon achieving continued service for three and five years from the date of award. All awards are subject
to potential forfeit if the individual resigns.
In addition, options remain outstanding under the following closed schemes:
Incentive Share Option Plan (ISOP)
The ISOP was open by invitation to the employees and Directors of Barclays PLC. Options were 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 is determined by reference to set performance criteria. The number of shares under option represents the maximum possible
number that may be exercised. No awards were made under ISOP during 2006 or 2007.
Executive Share Option Scheme (ESOS)
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 with an exercise price equivalent to 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.
Woolwich Executive Share Option Plan (Woolwich ESOP)
Options originally granted over Woolwich PLC shares at market value were exercised in 2001 or exchanged, in accordance with the proposals made under
the offer to acquire the Woolwich, for options over Barclays PLC shares. Under the rules of ESOP, the performance conditions attached to the exercise of
options were disapplied on acquisition of Woolwich PLC by Barclays. Options lapse ten years after grant.
At the balance sheet date, no options remained outstanding or exercisable in respect of the following closed scheme:
Woolwich Save as You Earn (Woolwich SAYE)
Under this scheme, employees entered 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 the shares in the Company at a discount calculated in accordance with the rules of the scheme. The discount
was 20% of the market price at the date the options were granted.
At the balance sheet date the following cash settled schemes operated within the group:
Barclays Africa Share Plan
The Barclays Africa Share Plan grants a number of notional shares and settles in a cash award linked to the Barclays PLC share price. The exercise price of
options is equal to the increment of the market price of Barclays shares over the original price on the date of grant. The final number of notional shares
over which the option may be exercised is determined by reference to set performance criteria. Awards vest three years from grant and expire four years
from that date.
Absa Group Phantom Performance Share Plan (Absa Phantom PSP)
The Absa Phantom PSP was implemented during 2006 to replace the Absa Group Limited Share Incentive Trust (AGLSIT) scheme. Shares are awarded at
no cost to participants and the cash paid is equal to the market value of ordinary shares of Absa Group Limited. The performance of Absa over a three-
year period determines the final number of notional shares that any cash payment would be based on. Awards vest after three years to the extent that the
performance conditions are satisfied.