Peachtree 2013 Annual Report Download - page 131

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Net debt and capital structure continued
The Sage Group plc | Annual Report & Accounts 2013 125
Financial statements
The Sage Group Restricted Share Plan
The Group Restricted Share Plan is a long-term incentive plan used in limited circumstances and usually on a one-off basis, under which contingent
share awards are made, usually with specific performance conditions. Executive directors are not permitted to participate in the plan and shares are
purchased in the market to satisfy vesting awards.
Grant date
June
2012
Share price at grant date £2.66
Exercise price £0.00
Number of employees 1
Shares under award 350,018
V
esting period (years) 3
Expected volatility 23%
A
ward life (years) 3
Expected life (years) 3
Risk free rate 0.38%
Expected dividends expressed as a dividend yield 0.0%
Fair value per award £2.655
Options were valued using the Black-Scholes option-pricing model. The expected volatility is based on historical volatility over the last two or
three years, consistent with the award life. The expected life is the average expected period to exercise. The risk free rate of return is the yield
on zero-coupon UK government bonds of a term consistent with the assumed award life.
A reconciliation of award movements over the year is shown below:
2013 2012
Number
’000s
Weighted
average
exercise
price
£
Number
’000s
Weighted
average
exercise
price
£
Outstanding at 1 October 720 – ––
A
warded – – 720 –
Outstanding at 30 September 720 – 720 –
Exercisable at 30 September – – ––
2013 2012
Weighted
average
exercise
price
£
Number
of shares
’000s
Weighted average
remaining life years
Weighted
average
exercise
price
£
Number
of shares
’000s
Weighted average
remaining life years
Range of exercise prices Expected Contractual Expected Contractual
N/A – 720 0.4 0.4 – 720 1.9 1.9
The Sage Group Savings-related Share Option Plan (the “SAYE Plan”)
The Group operates an approved savings-related share option scheme for UK employees. The fair value is expensed over the service period of three,
five or seven years on the assumption that 20% of options will lapse over the service period as employees leave the Group.
129The Sage Group plc | Annual Report & Accounts 2013
GovernanceStrategic report Financial statements