Barclays 2008 Annual Report Download - page 188

Corporate governance
Remuneration Report
Share and Long Term Incentive Plans (continued)
Table 26: Plans under which awards not made in 2008 (continued)
Executive
Directors
Plan name Eligible? Description
BGI EOP – Accounting and disclosure
– The BGI EOP is accounted for as an equity settled share-based payment in accordance with IFRS 2 ‘Share-based
Payment’. The fair value of the services received from the employees is measured by reference to the fair value of
the share options granted on the date of the grant. The cost of the employee services received in respect of the
share options granted is recognised in the income statement over the period that the services are received.
– The cost for 2008 of £30.9m (2007: £54.8m, 2006: £37.4m) is included in staff costs in Note 8 to the accounts. In
accordance with IFRS 2, details of share options granted and exercised, together with weighted average fair values
at grant date and weighted average exercise prices are set out in Note 45 to the accounts. In accordance with IAS 33
‘Earnings per Share’, unexercised options are taken into account in the calculation of diluted earnings per share as
set out in Note 11 to the accounts.
– For Group reporting, the exercise of options by employees is treated as a deemed disposal of interests in a subsidiary,
as its holding in the subsidiary has been reduced for the consideration represented by the exercise price. Any
subsequent purchase of shares offered for sale by employees is treated as a purchase of an additional investment in
a subsidiary entity. The cash flows relating to these capital transactions are included in the consolidated cash flow
statement and disclosed, along with other disposals and acquisitions, in Note 38 to the accounts and related
movements in goodwill and minority interests are included in Notes 21 and 33 to the accounts respectively.
186 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08