Experian 2008 Annual Report Download - page 124

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122 Experian Annual Report 2008
35. Share-based payment arrangements (continued)
Experian Roll-over plans (formerly GUS plans)
The arrangements in respect of former GUS share option plans, which were primarily rolled over into Experian equivalent
plans at demerger, are as follows:
Arrangements
The 1998 Approved and Non-Approved
Executive Share Option Schemes The North America Stock Option Plan
Savings related share
option schemes
Nature Grant of options Grant of options ‘Save as you earn’
schemes
Vesting conditions:
– Service period 3 years 1, 2 and 3 years 3 or 5 years
– Performance/Other EPS growth performance
condition1
n/a Saving obligation over
the vesting period
Expected outcome of meeting
performance criteria (at grant date) Condition is satisfied n/a n/a
Maximum term 10 years 6 years 3.5 or 5.5 years
Method of settlement Share distribution Share distribution Share distribution
Expected departures
(at grant date)
5% 1 year – 0%
2 years – 15%
3 years – 20%
3 years2 – 30%
5 years2 – 50%
Option exercise price calculation3Market price over the 3 dealing
days preceding the grant
Market price over the 3 dealing
days preceding the grant
20% discount to market
price over the 3 dealing
days preceding the
grant
1. The performance condition for The 1998 Approved and Non-Approved Executive Share Option Schemes required average Benchmark EPS growth to exceed
the average growth in the general index of UK retail prices by at least 4% p.a. over a 2 year period. The period of assessment commenced at the date of
demerger. This is not a market based performance condition as defined by IFRS 2.
2. The stated values for expected departures include participants who did not meet the saving requirement of the scheme.
3. Three day averages were calculated by taking middle market quotations of a GUS plc share from the London Stock Exchange daily official list. At roll-over, the
quantity and exercise price of grants were modified to adjust for the difference between the GUS and Experian share prices.
4. At demerger, a limited number of options and awards remained as GUS options and awards and participants had entitlement to one Home Retail Group share
and one Experian share in lieu of each GUS share allocated. To the extent that these share options did not vest in accordance with their conditions, they lapsed
during the year ended 31 March 2007 or the year ended 31 March 2008.
(ii) Weighted average share price
2008 2007
£ £
Weighted average share price of Experian Group Limited 1 5.02 5.90
GUS plc share price at demerger n/a 9.90
Weighted average share price of GUS plc2 n/a 9.82
1. Experian’s weighted average share price for 2007 is for the period from the listing date, 11 October 2006, to 31 March 2007.
2. GUS plc’s weighted average share price for 2007 is in respect of the period up to 11 October 2006.
Options in respect of the ordinary shares of Experian Group Limited and GUS plc were exercised on a regular basis
throughout the periods that the respective shares were in issue.
Notes to the Group financial statements continued