Experian 2010 Annual Report Download - page 136

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Experian Annual Report 2010 Financial statements134
Notes to the Group nancial statements (continued)
29. Share-based payment arrangements (continued)
(b) Share awards
(i) Summary of arrangements
Experian Co-Investment
Plan
Experian Reinvestment
Plan
Experian Performance
Share Plan
Experian Free Shares
Plan and the Experian UK
Approved All-Employee
Plan
Nature of
arrangement Grant of shares1Grant of shares1Grant of shares Grant of shares
Vesting conditions:
– Service period 4 years 3 to 5 years 3 to 5 years 3 years
– Performance 100% - Benchmark
prot performance
of Group assessed
against specied
targets2
50% - Benchmark
prot performance
of Group assessed
against specied
targets3
50% or 75% -
Benchmark prot
performance of Group
assessed against
specied targets 3
n/a
50% - n/a 50% or 25% –
Distribution
percentage
determined by
ranking Total
Shareholder Return
(‘TSR’) relative to a
comparator group4
Expected outcome of
meeting performance
criteria (at grant date)
Benchmark prot –
100%
Benchmark prot –
92%
Benchmark prot –
91%
n/a
Unconditional –
100%
TSR – range from
30% to 61%
Maximum term 4 years 5 years 5 years 3.5 years
Method of settlement Share distribution Share distribution Share distribution Share distribution
Expected departures
(at grant date)
5% 5% 5% 15%
1. The grant date is the start of the nancial 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 reects the
performance outcome at the date of their issue to participants.
2. The Benchmark prot performance condition for the Experian Co-Investment Plan requires Benchmark PBT growth to exceed 6%p.a. over a 3 year period for
the 2008 award and 3%p.a. over a 3 year period for the 2009 award. The period of assessment commences at the beginning of the nancial year of grant. This is
not a ‘market-based’ performance condition as dened by IFRS 2 'Share-Based Payments'.
3. The Benchmark prot performance condition for the Experian Reinvestment Plan and Experian Performance Share Plan in prior years required Benchmark
PBT growth to exceed 7% over a 3 year period with the condition fully satised if Benchmark PBT growth is 14%. In the case of Performance Share Plan
Awards after 1 April 2009, the growth percentages are 4% and 8% respectively. The period of assessment commences at the beginning of the nancial year of
grant. This is not a ‘market-based’ performance condition as dened by IFRS 2.
4. The Experian Performance Share Plan TSR condition is considered a ‘market-based’ performance condition as dened by IFRS 2. In valuing the awarded
shares, TSR is evaluated using a Monte Carlo simulation with historic volatilities and correlations for comparator companies measured over the 3 year period
preceding valuation and an implied volatility for Experian plc.