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Marks and Spencer Group plc Annual report and financial statements 2009 Financial statements
Notes to the financial statements
continued
96
12 Share-based payments continued
B. Executive Share Option Scheme
Under the terms of the Executive Share Option Scheme, last approved by shareholders in 2005, the Board may offer options to purchase
ordinary shares in the Company to executive directors and senior managers at the market price on a date to be determined prior to the date
of the offer. No further options may be granted under any schemes other than the 2005 scheme. No awards have been made under the
2005 scheme. Further details are set out in the Remuneration report on page 66.
Performance targets are assessed over a three year period from the date of grant with no ability to retest any grants. Once options have
vested they can be exercised during the period up to ten years from grant date.
2009 2008
Number of
options
Weighted
average
exercise price Number of
options
Weighted
average
exercise price
Outstanding at beginning of the period 9,623,518 341.0p 12,017,117 341.2p
Exercised (142,559) 343.9p (2,235,209) 341.0p
Forfeited (678,888) 340.7p (152,698) 348.6p
Expired (169,288) 550.3p (5,692) 527.0p
Outstanding at end of the period 8,632,783 336.8p 9,623,518 341.0p
Exercisable at end of period 8,632,783 336.8p 8,444,937 339.4p
For executive share options exercised during the period, the weighted average share price at the date of exercise was 395.3p
(last year 645.5p).
The resulting fair value is expensed over the expected service period of five years on the assumption that 30% of options will lapse over the
service period as employees leave the Company.
Outstanding options granted under all Executive Share Option Schemes are as follows:
Number of options Weighted average remaining
contractual life (years)
Options granted 2009 2008 2009 2008 Option price
1997 Scheme
June 1998 –161,863 – 0.2 557p
November 1998 –7,425 – 0.6 404p
June 1999 98,880 98,880 0.3 1.2 358p
2000 Scheme
September 2000 232 232 1.5 2.5 215p
June 2001 135,989 135,989 2.3 3.3 256p
December 2001 18,087 71,658 2.8 3.7 350p
2002 Scheme
June 2002 579,237 659,465 3.3 4.2 350p
November 2002 47,150 47,150 3.7 4.7 353p
June 2003 1,398,584 1,502,053 4.3 5.2 297p
November 2003 36,109 36,109 4.7 5.7 270p
February 2004 33,111 33,111 4.9 5.8 270p
July 2004 4,417,613 4,831,318 5.3 6.3 347p
November 2004 806,193 859,684 5.7 6.7 337p
June 2005 1,061,598 1,178,581 6.3 7.2 352p
8,632,783 9,623,518 5.0 5.9 335p