Vodafone 2007 Annual Report Download - page 119

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Vodafone Group Plc Annual Report 2007 117
20. Share-based payments
The Company currently uses a number of equity settled share plans to grant
options and shares to its directors and employees.
The maximum aggregate number of ordinary shares which may be issued in
respect of share options or share plans will not (without shareholder
approval) exceed:
a. 10% of the ordinary share capital of the Company in issue immediately
prior to the date of grant, when aggregated with the total number of
ordinary shares which have been allocated in the preceding ten year
period under all plans; and
b. 5% of the ordinary share capital of the Company in issue immediately prior
to the date of grant, when aggregated with the total number of ordinary
shares which have been allocated in the preceding ten year period under
all plans other than the Sharesave Scheme and the Vodafone Group Plc All
Employee Share Plan.
Share Options
Vodafone Group Sharesave Scheme
The Vodafone Group 1998 Sharesave Scheme (the “Sharesave Scheme”)
enables UK staff to acquire shares in the Company through monthly savings
of up to £250 over a three or five year period, at the end of which they also
receive a tax free bonus. The savings and bonus may then be used to
purchase shares at the option price, which is set at the beginning of the
invitation period and usually at a discount of 20% to the then prevailing
market price of the Company’s shares.
Vodafone Group executive schemes
The Vodafone Global Incentive Plan is a discretionary plan under which share
options are granted to directors and certain employees. Some of the share
options are subject to performance conditions. Options are normally
exercisable between three and ten years from the date of grant.
The Company has a number of discretionary share option plans, under which
awards are no longer made; the Vodafone Group 1998 Company Share
Option Scheme and Vodafone Group 1988 Executive Share Option Scheme
(which are UK HM Revenue and Customs approved), the Vodafone Group
1998 Executive Share Option Scheme and the Vodafone 1988 Share Option
Scheme (which are unapproved) and the Vodafone Group 1999 Long Term
Incentive Plan. Some of the options are subject to performance conditions.
Options are normally exercisable between three and ten years from the date
of grant.
For grants made to US employees, prior to 7 July 2003 the options have
phased vesting over a four year period and are exercisable in respect of ADSs.
For grants made from 7 July 2003, options are normally exercisable between
three and ten years from the date of grant, subject to the satisfaction of
predetermined performance conditions and are exercisable in respect of
ADSs.
Other share option schemes
Share option schemes are operated by certain of the Group’s subsidiary
undertakings although awards are no longer made under these schemes.
Share Plans
Vodafone Share Incentive Plan
The Share Incentive Plan enables UK staff to acquire shares in the Company
through monthly purchases of up to £125 per month or 5% of salary,
whichever is lower. For each share purchased by the employee, the Company
provides a free matching share.
Vodafone Group AllShares
All permanent employees at 1 April 2006 received an award of 340 shares
(2006: 320) in Vodafone Group Plc on 3 July 2006, under the Vodafone Group
Plc Global All Employee Share Plan. The awards vest after two years and are
not subject to performance conditions other than continued employment.
Vodafone Group executive plans
Under the Vodafone Global Incentive Plan and its predecessor the Vodafone
Group Plc 1999 Long Term Stock Incentive Plan, awards of performance
shares are granted to directors and certain employees. The release of these
shares is conditional upon achievement of performance targets measured
over a three year period.
Under the Vodafone Group Deferred Share Bonus Plan, directors and certain
employees may defer their annual bonus into shares. Subject to continued
employment and retention of the deferred shares for two years, additional
shares are released at the end of this two year period if a performance
condition has been satisfied.
Financials