Cogeco 2012 Annual Report Download - page 70

Consolidated financial statements COGECO CABLE INC. 2012 69
During the year, subordinate voting share transactions were as follows:
August 31, 2012 August 31, 2011
Number o
f
shares Amount
Number o
f
shares Amount
(In thousands of Canadian dollars, except number of shares) $ $
Balance, beginning of the year 33,073,656 898,327 32,885,337 892,332
Shares issued for cash under the Employee Stock Option Plan 43,852 1,295 188,319 4,740
Compensation expense previously recorded in Share-based compensation reserve
for options exercised  375  1,255
Balance, end of the year 33,117,508 899,997 33,073,656 898,327
During the year, subordinate voting shares held in trust under the ISU Plan transactions were as follows:
August 31, 2012 August 31, 2011
Number o
f
shares Amount
Number o
f
shares Amount
(In thousands of Canadian dollars, except number of shares) $ $
Balance, beginning of the year 103,728 3,751 57,409 1,848
Subordinate voting shares acquired 61,815 3,049 59,503 2,368
Subordinate voting shares distributed to employees (2,000) (99) (13,184) (465)
Subordinate voting shares sold (13,741) (522)  
Balance, end of the year 149,802 6,179 103,728 3,751
DIVIDENDS
For the year ended August 31, 2012, a dividend of $1 per share was paid to the holders of multiple and subordinate voting shares, totalling
$48.7 million, compared to a dividend of $0.71 per share, or $34.5 million the year before.
SHARE-BASED PAYMENT PLANS
The Corporation offers, for the benefit of its employees and those of its subsidiaries, an Employee Stock Purchase Plan and a Stock
Option Plan for certain executives. Under these plans, no more than 10% of the outstanding subordinate voting shares are available.
Furthermore, the Corporation offers an Incentive Share Unit Plan (“ISU Plan”) for senior executives and designated employees and a
Deferred Share Unit Plan (“DSU Plan”) for members of the Board of Directors of the Corporation.
Stock purchase plan
The Corporation offers, for the benefit of its employees and those of its subsidiaries, an Employee Stock Purchase Plan, which is
accessible to all employees up to a maximum of 7% of their base annual salary and the Corporation contributes 25% of the employee
contributions. The subscriptions are made monthly and employee subordinate voting shares are purchased on the stock market.
Stock option plan
A total of 2,400,000 subordinate voting shares are reserved for the purpose of the Stock Option Plan. The minimum exercice price at
which options are granted is equal to the market value of such shares at the time the option is granted. Options granted after
September 1, 2009, vest equally over a period of five years beginning one year after the day such options are granted and are exercisable
over ten years. Prior to September 1, 2009, options granted vest at the rate of 20% per year beginning the day such options were granted
and were exercisable over ten years. For the year ended August 31, 2012, the Corporation granted 91,961 stock options (71,090 in 2011)
with an exercise price ranging from $48.02 to $48.15 ($39.00 to $44.00 in 2011) of which 47,729 stock options (35,800 in 2011) were
granted to COGECO Inc.’s employees. As a result, a compensation expense of $333,000 ($246,000 in 2011) was recorded for the year
ended August 31, 2012.