Experian 2008 Annual Report Download - page 129

Download and view the complete annual report

Please find page 129 of the 2008 Experian annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

127Experian Annual Report 2008
Introduction
2 – 5
Business review
6 – 37
Governance
38 – 64
Financial statements
Group financial statements
Financial statements
Group financial statements
35. Share-based payment arrangements (continued)
Former GUS share award plans
The arrangements in respect of former GUS plans which were in place in the period to the date of demerger were as follows:
Arrangements Co-Investment Plan – Matching shares Performance Share Plan
Nature Grant of shares1Grant of shares
Vesting conditions:
– Service period 4 years 3 years
– Performance Benchmark profit performance of
Group/Division assessed against
specified targets
Distribution percentage determined
by ranking ‘Total Shareholder Return’
relative to a comparator group2
Expected outcome of meeting
performance criteria (at grant date)
n/a 60.0% for the June 2005 grant
50.6% for the June 2006 grant
Maximum term 4 years 3 years
Method of settlement Share distribution Share distribution
Expected departures (at grant date) 7% 5%
1. The matching shares are a nil consideration option but have been classified as an award of shares because of their nature. The grant date is the start of the
financial year in which performance is assessed. This is before the quantity of the shares award is determined but the underlying value of the award is known
at the grant date, subject to the outcome of the performance condition. The value of awarded shares reflects the performance outcome at the date of their
issue to participants.
2. This condition is considered a ‘market-based’ performance condition as defined by IFRS 2. The awards were valued using a Monte Carlo simulation with
historic volatilities and correlations measured over the three year period preceding valuation.
(ii) Information relating to share grant valuation techniques
The majority of the grants under the Experian share award plans were made on the first day of trading for Experian Group
Limited shares and trading was particularly volatile on that day. The weighted average share price for that day’s trading
was used to determine the value of demerger share awards. For the former GUS plans the value of awards is determined
as the market closing price on the date awarded grants are issued to participants. For the Experian Reinvestment Plan
and the former GUS Co-Investment Plan, this occurs after the first year of performance is assessed. Where appropriate
market-based performance conditions are included in the fair value measurement on grant date and are not revised for
actual performance.
Participants in the share award plans have an entitlement to dividend distributions on awarded shares from the issue date
until the date of vesting. The market price on the day of valuation is considered inclusive of such future dividend distributions
and no modifications are made for dividend distributions or other factors.