Cogeco 2013 Annual Report Download - page 81

80 COGECO CABLE INC. 2013 Consolidated financial statements
During fiscal 2013 and 2012, subordinate voting share transactions were as follows:
Years ended August 31, 2013 2012
Number of
shares Amount Number of shares Amount
(In thousands of Canadian dollars, except number of shares) $ $
Balance, beginning of the year 33,117,508 899,997 33,073,656 898,327
Shares issued for cash under the Stock Option Plan 88,115 2,362 43,852 1,295
Compensation expense previously recorded in share-based payment
reserve for options exercised — 808 — 375
Balance, end of the year 33,205,623 903,167 33,117,508 899,997
During fiscal 2013 and 2012, subordinate voting shares held in trust under the Incentive Share Unit Plan transactions were as follows:
Years ended August 31, 2013 2012
Number of
shares Amount Number of shares Amount
(In thousands of Canadian dollars, except number of shares) $ $
Balance, beginning of the year 149,802 6,179 103,728 3,751
Subordinate voting shares acquired 101,047 4,076 61,815 3,049
Subordinate voting shares distributed to employees (44,141) (1,415) (2,000) (99)
Subordinate voting shares sold — — (13,741) (522)
Balance, end of the year 206,708 8,840 149,802 6,179
C) DIVIDENDS
For the year ended August 31, 2013, quarterly dividends of $0.26 per share, for a total of $1.04 per share, were paid to the holders of multiple
and subordinate voting shares, totaling $50.6 million, compared to quarterly dividends of $0.25 per share, for a total of $1.00 per share or
$48.7 million for the year ended August 31, 2012.
D) 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 senior executives and key employees of the Corporation. No more than 10% of the outstanding subordinate voting shares
are available for issuance under these plans. Furthermore, the Corporation offers an Incentive Share Unit Plan (“ISU Plan”) for senior executives
and designated employees of the Corporation 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, 2013, the Corporation granted 223,942 stock options (91,961 in 2012) with an exercise price
of $38.08 to $49.40 ($48.02 to $48.15 in 2012) of which 71,233 stock options (47,729 in 2012) were granted to COGECO Inc.’s employees.
As a result, a compensation expense of $408,000 ($333,000 in 2012) was recorded for the year ended August 31, 2013.