ICICI Bank 2005 Annual Report Download - page 30

Options granted for fiscal 2003 and earlier years vest in a graded manner over a three-year period, with
20%, 30% and 50% of the grants vesting in each year, commencing not earlier than 12 months from the
date of grant. Options granted for fiscal 2004 and beyond vest in a graded manner over a four-year period,
with 20%, 20%, 30% and 30% of the grants vesting each year, commencing not earlier than 12 months
from the date of grant.
Options can be exercised within 10 years from the date of grant or five years from the date of vesting,
whichever is later. The price of the options granted prior to June 30, 2003 is the closing market price on the
stock exchange, which recorded the highest trading volume on the date of grant. The price for options
granted on or after June 30, 2003 till July 21, 2004 is equal to the average of the high and low market price of
the equity shares in the two week period preceding the date of grant of the options, on the stock exchange
which recorded the highest trading volume during the two week period. The price for options granted on
or after July 22, 2004 is equal to the closing price on the stock exchange which recorded the highest trading
volume preceding the date of grant of options. The above pricing is in line with the SEBI guidelines, as
amended from time to time.
On the basis of the recommendation of the Board Governance & Remuneration Committee, the Board at its
Meeting held on April 30, 2005 approved a grant of approximately 4.9 million options for fiscal 2005 to
eligible employees and wholetime Directors. Each option confers on the employee a right to apply for one
equity share of face value of Rs. 10 of ICICI Bank at Rs. 359.95, which was the last closing price on the stock
exchange which recorded the highest trading volume in ICICI Bank shares on April 29, 2005.
Particulars of options granted by ICICI Bank upto April 30, 2005 are given below:
Options granted by ICICI Bank for fiscal 2005 to senior managerial personnel are as follows:
K.V. Kamath - 250,000, Lalita D. Gupte - 165,000, Kalpana Morparia - 150,000, Chanda D. Kochhar - 125,000,
Nachiket Mor - 125,000, Bhargav Dasgupta - 75,000, N.S. Kannan - 75,000, Sanjiv Kerkar - 37,500,
Vishakha Mulye - 75,000, Ramni Nirula - 37,500, Nagesh Pinge - 45,000, Madhabi Puri-Buch - 75,000,
K. Ramkumar - 75,000, Balaji Swaminathan - 75,000, V. Vaidyanathan - 75,000 and Pravir Vohra - 37,500. No
employee/director has a grant, in any one year, of options amounting to 5% or more of total options
granted during that year. No employee was granted options during any one year equal to or exceeding
0.05% of the issued equity shares of ICICI Bank at the time of the grant.
The diluted earnings per share (EPS) pursuant to issue of shares on exercise of options calculated in
accordance with Accounting Standard 20 was Rs. 27.3 in fiscal 2005 against basic EPS of Rs. 27.6. Since
the exercise price of ICICI Bank’s options is the last closing price on the stock exchange which recorded the
highest trading volume preceding the date of grant of options, there is no compensation cost in fiscal 2005
based on the intrinsic value of options. However, if ICICI Bank had used the fair value of options based on
28
Directors’ Report
33,863,155
17,235,711
8,380,223
8,380,223
2,917,415
-
1,230,888,759
22,565,517
Options granted
Options vested
Options exercised
Number of shares allotted pursuant to exercise of options
Options forfeited/lapsed
Extinguishment or modification of options
Amount realised by exercise of options (Rs.)
Total number of options in force
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