92 | FINANCIAL STATEMENTS | Notes to the Consolidated Financial Statements
26. Share-based payments continued
(i) Deferred Share Awards The LTRP allows deferred awards to be granted to employees below Executive Director level, subject only to a time-vesting period of three years.
The number of Deferred Share Awards is as follows:
2011 No.
Outstanding at 1 January Granted during the year Exercised during the year Forfeited during the year Expired during the year
Outstanding at 31 December Exercisable at 31 December
The awards exercisable at 31 December 2011 and 31 December 2010 relate to good leavers.
At 31 December 2011 the following LTRP Deferred Share Awards were outstanding: Grant date
8 July 2009 7 April 2010
10 March 2011
No. of options outstanding 10,979,123
13,365,317 12,612,828
Earliest exercise date 8 July 2012
7 April 2013 10 March 2014 The awards outstanding at 31 December 2011 have a weighted average outstanding term of 1.4 years (31 December 2010: 1.6 years).
(ii) Restricted Share Awards Ordinary Shares that are the subject of a Restricted Share Award under the LTRP will vest dependent upon achieving four specified performance conditions and conditions of continued service being met. The performance conditions applied to the LTRP are determined by the Board, are measured over a three-year performance period and comprise the following:
• 25% of the award comprises an underlying Earnings Per Share (EPS) condition; • 25% of the award comprises a Total Shareholder Return (TSR) condition; • 25% of the award comprises an Investment Performance condition; and • 25% of the award comprises a Net New Business condition.
To the extent that any element of the award has not vested in accordance with the performance criteria detailed below it lapses immediately.
(1) The EPS element The EPS condition is based on the amount by which the average annual percentage growth in underlying EPS exceeds the percentage increase in the Retail Price Index condition over the three-year performance period (EPS Outperformance Percentage).
The awards vest according to the following criteria: EPS Outperformance Percentage
Less than 3% 3%
Equal to or greater than 11% Between 3% and 11%
Percentage of award vesting 0%
25% 100% Straight-line vesting between 25% and 100%
(2) The TSR element The TSR condition compares the TSR of the Group over a three-year performance period (commencing on the award date) with a list of companies in a predetermined financial services comparator group. At the end of the performance period, the Group and each of the comparator companies are listed and ranked in accordance with their TSR over the performance period (TSR Position). The TSR measure reflects the movement in the value of shares plus any dividends declared during the relevant period.
The awards vest according to the following criteria: TSR Position
Below median Median
Upper quartile Between median and upper quartile
Percentage of award vesting 0%
25% 100% Straight-line vesting between 25% and 100%
Exercise price 0.0p
0.0p 0.0p
(10,697,991) (6,170,470) (983,387)
957,480
2010 No.
39,371,737 28,769,100 15,437,379 17,335,585 (5,243,031) (1,280,575) (209,342)
36,957,268 39,371,737 209,259
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