Cathay Pacific 2002 Annual Report Download - page 56

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Cathay Pacific Airways Limited Annual Report 2002 53
21. SHARE CAPITAL
2002 2001
Number of shares HK$M Number of shares HK$M
Authorised (HK$0.20 each) 3,900,000,000 780 3,900,000,000 780
Issued and fully paid (HK$0.20 each)
At 1st January 3,329,817,848 666 3,350,621,848 670
Shares purchased and cancelled
--
(21,000,000) (4)
Share options exercised 6,190,000 1 196,000
-
At 31st December 3,336,007,848 667 3,329,817,848 666
The Company adopted a share option scheme (the “Scheme”) on 10th March 1999 for the purpose of providing
flight deck crew of the Group with the incentive to contribute towards the Company’s results. All participants of
the Scheme were flight deck crew of the Group who paid HK$1 each in acceptance of their share options and
were granted options to subscribe for shares of the Company at a price not less than the higher of 80% of the
average of the closing prices of the Company’s shares on the Stock Exchange on the five trading days immediately
preceding the date of grant, and the nominal value of the shares. The maximum number of shares available for
issue under the Scheme is 10% of the issued share capital of the Company. The entitlement of each participant
has not exceeded 0.32% of the maximum aggregate number of shares in respect of which options have been
granted under the Scheme.
Options to subscribe for a total of 68,317,000 shares at the exercise price of HK$7.47 per share were granted
under the Scheme on the date of grant 15th March 1999. Other than in limited circumstances, the options in
relation to 50% of the shares became exercisable on 15th March 2002, and the balance will be exercisable on
15th March 2004. The options will, except in limited circumstances, be exercisable until 14th March 2009.
Upon exercise of share options, equity is increased by the number of options exercised at the exercise price.
2002 2001
Movements in options outstanding comprise: Number of shares Number of shares
At 1st January 67,134,000 67,970,000
Options exercised (6,190,000) (196,000)
Options lapsed (71,000) (640,000)
At 31st December 60,873,000 67,134,000
Options vested at 31st December 29,913,500 2,893,000
No option was granted under the Scheme during the year.
Details of share options exercised during the year: 2002 2001
Exercise date 10/1/02
-
31/12/02 2/4/01
-
16/8/01
Proceeds received (HK$) 46,239,300 1,464,120
Weighted average closing share price immediately
before the exercise date (HK$) 12.14 10.81
Notes to the Accounts
-
Balance Sheet