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Carphone Warehouse Group plc Annual Report 2011 59
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
c) Performance Share Plan
Old Carphone Warehouse had a Performance Share Plan which used share options to provide long-term incentives to senior
management of Old Carphone Warehouse. Awards made under the Performance Share Plan in the years ended 31 March 2007
and 29 March 2008 were subject to TSR performance targets and were measured over a performance period to 4 June 2010.
The performance targets were not met and as such the scheme lapsed.
Awards made in earlier years have already vested.
If the options remain unexercised after a period of ten years from the date of grant, the options expire.
The following table summarises the number and WAEP of share options for the scheme:
Number
million
2011
WAEP
£
Number
million
2010
WAEP
£
Outstanding at the beginning of the year 6.7 – 11.1 –
Lapsed during the year (3.6) – (1.2) –
Exercised during the year (1.5) – (3.2) –
Outstanding at the end of the year 1.6 – 6.7 –
Exercisable at the end of the year 1.6 – 3.1 –
The options outstanding at 31 March 2011 had a weighted average remaining contractual life of 3.6 years (2010: 6.6 years).
The options exercised during the year were exercised at a weighted average market price of £2.90 (2010: £1.60).
d) Executive Share Option Scheme
Old Carphone Warehouse had an Executive Share Option Scheme under which share options were issued at market value. All
Executive Share Option Scheme options have already vested. If the options remain unexercised after a period of ten years from the
date of grant, the options expire.
The following table summarises the number and WAEP of share options for the scheme:
Number
million
2011
WAEP
£
Number
million
2010
WAEP
£
Outstanding at the beginning of the year 2.6 0.95 3.8 0.87
Exercised during the year (1.4) 1.10 (1.2) 0.80
Outstanding at the end of the year 1.2 0.79 2.6 0.95
Exercisable at the end of the year 1.2 0.79 2.6 0.95
The options outstanding at 31 March 2011 had a weighted average remaining contractual life of 1.6 years (2010: 1.8 years).
The options exercised during the year were exercised at a weighted average market price of £2.54 (2010: £1.64).
The summary above includes 0.6m options (2009: 1.7m) that were granted before 7 November 2002. In accordance with IFRS 2
‘Share-based Payment’, no cost has been recognised in respect of these options.
e) Share gift
In December 2008, 1.8 million shares were gifted by Old Carphone Warehouse’s ESOT to certain senior employees within Old
Carphone Warehouse, of which 0.4m related to employees of the Group. The shares were restricted until 30 June 2010 based on
various internal performance conditions, principally in relation to earnings and cash generation. The performance conditions
were met and as such the shares become unrestricted during the year.