Carphone Warehouse 2007 Annual Report Download - page 50

Notes to the Financial Statements continued
6 Share-based payments continued
b) Executive Share Option Scheme:
The Group has an Executive Share Option Scheme which provides for a grant price equal to the average quoted market price of the Company’s shares on the date
of grant. The vesting period is generally three years. If the options remain unexercised after a period of ten years from the date of grant, the options expire. Options
are forfeited if the employee leaves the Group before the options vest.
The following table summarises the number and WAEP of share options for the scheme:
2007 2006
Number WAEP Number WAEP
000’s £ 000’s £
Outstanding at the beginning of the period 32,559 1.05 47,826 1.04
Granted during the period ––100 1.35
Forfeited during the period (227) 0.94 (826) 0.90
Exercised during the period (10,907) 0.93 (14,541) 1.05
Outstanding at the end of the period 21,425 1.11 32,559 1.05
Exercisable at the end of the period 21,425 1.11 20,276 1.13
The options outstanding at 31 March 2007 had a weighted average remaining contractual life of 4.5 years (2006 – 5.8 years). The options exercised during the
period were exercised at a weighted average market price of £3.09 (2006 – £1.95).
The summary above includes 14.4m (2006 – 20.2m) options that were granted before 7 November 2002. In accordance with IFRS2 ‘Share-based Payment’,
no cost has been recognised in respect of these options.
c) Retail Share Option Scheme:
The Group has a Retail Share Option Scheme, which is open to senior employees in the UK Retail business. The scheme provides for a grant price equal to the
average quoted market price of the Company’s shares on the date of grant. Options granted are subject to performance criteria. The vesting period is generally
three years. If the options remain unexercised after a period of ten years from the date of grant, the options expire. Options are forfeited if the employee leaves
the Group before the options vest.
The following table summarises the number and WAEP of share options for the scheme:
2007 2006
Number WAEP Number WAEP
000’s £ 000’s £
Outstanding at the beginning of the period 6,864 1.67 7,325 1.54
Granted during the period 150 3.10 906 2.51
Forfeited during the period (1,231) 1.66 (1,367) 1.56
Exercised during the period (1,720) 1.45 ––
Outstanding at the end of the period 4,063 1.82 6,864 1.67
Exercisable at the end of the period 1,575 1.44 ––
The options outstanding at 31 March 2007 had a weighted average remaining contractual life of 7.7 years (2006 – 8.4 years).
d) Other employee share option schemes:
The savings-related share option scheme permits the grant to employees of options linked to a bank save-as-you-earn contract for a term of three or five years
with contributions from employees of between £5 and £250 per month. Options may be exercised at the end of the three or five year period at a subscription price
not less than 80% of the middle market quotation on the date of grant.
In addition, options were granted to UK employees at the time of the Group’s admission to the London Stock Exchange.
The following table summarises the number and WAEP of share options for the scheme:
2007 2006
Number WAEP Number WAEP
000’s £ 000’s £
Outstanding at the beginning of the period 8,944 1.09 7,795 0.91
Granted during the period 3,140 2.66 3,660 1.38
Forfeited during the period (1,435) 1.76 (1,534) 1.12
Exercised during the period (1,790) 0.78 (977) 0.67
Outstanding at the end of the period 8,859 1.60 8,944 1.09
Exercisable at the end of the period 712 0.87 710 0.87
The options outstanding at 31 March 2007 had a weighted average remaining contractual life of 2.2 years (2006 – 2.3 years).
The summary above includes 1.1m (2006 – 1.5m) options that were granted before 7 November 2002. In accordance with IFRS2, no cost has been recognised in
respect of these options.
The options exercised during the period were exercised at a weighted average market price of £2.81 (2006 – £1.90).
The Carphone Warehouse Group PLC Annual Report 2007
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