Experian 2007 Annual Report Download - page 117

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31. Share-based payment arrangements (continued)
Options in respect of GUS plc shares outstanding at 31 March 2006 had the following exercise prices and remaining contractual lives:
At 31 March 2006
Weighted Weighted average remaining lives
Range of Number average
exercise of exercise
prices options price Expected Contractual
£ m £ years years
0-6 5.2 4.56 0.7 1.4
6-7 12.4 6.61 1.2 4.8
7-8 0.1 7.57 1.6 6.6
8-9 10.5 8.39 3.9 6.0
(b) Share awards in respect of Ordinary shares
(i) Summary of arrangements
Experian demerger share plans:
The following arrangements include awards made at and after demerger together with awards rolled over from former GUS plans:
Experian Free Shares Plan
Experian and the Experian
Experian Reinvestment Performance Share UK Approved All-
Arrangements Plan Plan Employee Plan
Natureof arrangement Grant of shares Grant of shares Grant of shares
Vesting conditions:
–Service period 3to 5 years 5 years 3 years
–Performance n/a
Expected outcome of meeting
performance criteria (at grant date) n/a 52.3% n/a
Maximum term 5 years 5 years 3.5 years
Method of settlement Sharedistribution Sharedistribution Sharedistribution
Expected departures (at grant date) 5% 5% 15%
1. The Benchmark profit performance condition for the Experian Reinvestment Plan and Experian Performance Share Plan requires profit before
tax growth to at least exceed 10 – 14% over a 3 year period. The period of assessment commences at the beginning of the financial year of
grant. This is not a ‘Market-based’ performance condition as defined by IFRS 2. The condition is applied to half of the awarded shares.
2. The Experian Performance Share Plan ‘Total Shareholder Return’ is considered a ‘Market-based’ performance condition under IFRS 2. It has
been valued using a Monte Carlo simulation with historic volatilities and correlations for comparator companies measured over the three year
period preceding valuation and an implied volatility for Experian Group Limited. The fair value of awards was calculated as 52.3% of the
weighted average share price for Experian Group Limited’s first day of trading on the London Stock Exchange. The condition is applied to half
of the awarded shares.
50% – Benchmark profit
performance of Group
assessed against specified
targets1
50% –Distribution percentage
determined by ranking ‘Total
Shareholder Return’ relative
to a comparator group 2
50% – Benchmark profit
performance of Group
assessed against specified
targets 1
50% – n/a
Experian Annual Report2007 |115