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82 Lenovo Group Limited 2013/14 Annual Report
COMPENSATION COMMITTEE REPORT
LTI Program
During fiscal year 2013/2014 LTI awards were made on a highly selected basis. The next full cycle LTI award is
expected in June of 2014. For fiscal year 2012/13, 12% of eligible employees (excluding executive directors) received
an award under the LTI Program. These awards were granted in February 2013.
Emoluments of Directors for FY2013/14 and Five Highest Paid Individuals
Details of the emoluments of Directors and the five highest paid individuals are set out in note 11 to the financial
statements.
LONG-TERM INCENTIVE SCHEMES
The Company implemented share option scheme and the LTI Program to attract, retain, reward and motivate Executive
and Non-executive Directors, senior management and selected top-performing employees of the Company and its
subsidiaries.
Share Option Scheme
At an extraordinary general meeting of the Company held on March 25, 2002, the shareholders of the Company
approved the adoption of a new share option scheme (the “New Option Scheme”) and the termination of the share
option scheme that was adopted on January 18, 1994.
Pursuant to the terms of New Option Scheme, the New Option Scheme shall be valid and effective for a period of 10
years commencing on the adoption date and expiring on the tenth anniversary of the adoption date. Accordingly, the
New Option Scheme had been expired on April 26, 2012, and no further options could thereafter be granted under the
New Option Scheme. However, all remaining provisions will remain in full force and effect to govern the exercise of all
the options granted under the New Option Scheme prior to its expiration. Further details of the New Option Scheme
are set out in the Directors’ Report on pages 111 to 113.
Details of the movement of the share options of the Company during the year ended March 31, 2014 were as follows:
Number of share options
Category of
participants
Held at
April 1,
2013
Exercised
during
the year
Lapsed
during
the year
Held at
March 31,
2014
Exercise
price
(HK$)
Grant date
(mm.dd.yyyy)
Exercise
period
(mm.dd.yyyy)
Continuous contract
employees
15,488,000 1,314,000 14,174,000 –2.245 04.26.2003 04.26.2003 to
04.25.2013
48,451,051 16,963,450 –31,487,601 2.545 04.27.2004 04.27.2004 to
04.26.2014
Notes:
1. Weighted average closing price of the listed shares of the Company immediately before the dates on which the options were exercised by continuous
contract employees was HK$8.439.
2. No share options are granted and/or cancelled under the New Option Scheme during the year.
3. The accounting policy adopted for the New Option Scheme is set out in the note 2(x)(iv) to the financial statements. Other details are set out in note
30(b) to the financial statements.