Carphone Warehouse 2009 Annual Report Download - page 64

60 The Carphone Warehouse Group PLC Annual Report 2009
Notes to the Financial Statements – continued
7 Share-based payments – continued
c) Retail Share Option Scheme:
Prior to the transaction with Best Buy, the Group operated a Retail Share Option Scheme, which provided market price share
options to senior employees in the UK retail and distribution business. Following the transaction, all unvested options were
allowed by the Company’s Remuneration Committee to vest early and the scheme was terminated. The expiry dates of these
options were changed to the later of three years from the last date of exercise, where an option-holder had previously exercised
under the scheme, and 31 December 2008.
The following table summarises the number and WAEP of share options for the scheme:
2009 2008
Number WAEP Number WAEP
million £ million £
Outstanding at the beginning of the year 6 2.90 4 1.82
Granted during the year – – 3 3.56
Forfeited during the year (4) 3.03 – 2.14
Exercised during the year – 1.72 (1) 1.53
Outstanding at the end of the year 2 2.73 6 2.90
Exercisable at the end of the year 2 2.73 2 1.61
The options outstanding at 31 March 2009 had a weighted average remaining contractual life of 2.4 years (2008: 8.5 years).
During the year 0.1m options with a WAEP of £1.72 were exercised. These options were exercised at a weighted average market
price of £2.41 (2008: £3.07).
Within options outstanding at 31 March 2009 were 2m options (2008: 6m) held by employees of discontinued operations,
of which 2m (2008: 2m) were exercisable at the end of the year.
Of the 2m (2008: 6m) options that were outstanding at 31 March 2009, there were none (2008: 1m) with an option price between
£1.00 and £2.00, 1m (2008: 1m) between £2.01 and £3.00 and 1m (2008: 4m) above £3.01.
d) Share gift:
In December 2008, 3.6 million shares were gifted by the Group’s Employee Share Ownership Trust to certain senior employees
within the Group and Best Buy Europe. The shares are restricted until 30 June 2010, and will be forfeited if various internal
performance conditions, principally in relation to earnings and cash generation, are not met.
e) Other employee share option schemes:
The Group has a savings-related share option scheme which permits the grant to employees of options linked to a bank
save-as-you-earn contract for a term of three or ve years with contributions from employees of between £5 and £250 per
month. Options may be exercised at the end of the three or ve year period at a subscription price not less than 80% of the
middle market quotation on the date of grant.
After the transaction with Best Buy all employees of the retail and distribution business were required to leave the scheme and
all unvested options were allowed to vest immediately. The expiry date on all vested options was changed to the later of three
years from the last date of exercise, where an option-holder had previously exercised under the scheme, and 31 December 2008.
In addition, options were granted to UK employees at the time of the Group’s admission to the London Stock Exchange.
Market priced options were also granted during the current year to certain senior employees within the Group and Best Buy
Europe. These awards are subject to internal performance conditions, principally in relation to earnings and cash generation,
over a period to June 2010.
The following table summarises the number and WAEP of share options for the scheme:
2009 2008
Number WAEP Number WAEP
million £ million £
Outstanding at the beginning of the year 8 2.00 9 1.60
Granted during the year 7 0.88 3 2.59
Forfeited during the year (4) 2.38 (2) 2.26
Exercised during the year (2) 1.24 (2) 1.07
Outstanding at the end of the year 9 1.08 8 2.00
Exercisable at the end of the year 1 0.92 1 0.88