98 | FINANCIAL STATEMENTS | Notes to the Consolidated Financial Statements


26. Share-based payments continued


(j) Share Save Scheme The Share Save Scheme is an “all-employee share scheme”. Participants are required to enter into a savings contract with a savings provider. At the end of the savings period employees can elect to receive cash or exercise options. The options granted entitle the holders to acquire Ordinary Shares at a price per Ordinary Share determined by the Directors prior to the issue of invitations. The price at which options are offered cannot be less than 80% of the middle-market quotation of an Ordinary Share at the date of grant.


The number and weighted average exercise prices (WAEP) of share options are as follows: 2011 No.


Outstanding at 1 January Forfeited during the year Expired during the year


Outstanding at 31 December Exercisable at 31 December


197,102 (68,268) (22,405)


106,429 3,766


The 2006 (five-year) award vested during 2011. No options were exercised and the options expired.


At 31 December 2011 the following options granted under the Share Save Scheme to acquire Ordinary Shares were outstanding: No. of options


Earliest Grant date


18 April 2006 (five-year) 25 April 2007 (five-year)


outstanding 3,766


102,663 exercise date


1 January 2012 1 June 2012


Exercisable before


1 June 2012 1 December 2012


Exercise price


171.0p 144.3p


The options outstanding at 31 December 2011 have a weighted average outstanding term of 0.3 years (31 December 2010: 0.9 years).


(k) 1995 and 2002 Executive Share Option Schemes IFRS 2: Share-based Payment is only applied to grants of shares, share options or other equity instruments that were granted after 7 November 2002 and had not vested before 1 January 2005 (i.e. the effective date of IFRS 2). The 1995 Executive Share Option Scheme (1995 ESOS) and the 2002 Executive Share Option Scheme (2002 ESOS) both granted options before 7 November 2002 and are not therefore subject to the full effects of IFRS 2 in terms of recognising an expense in the Income Statement. The standard does, however, require certain disclosures to be made in respect of these schemes.


All options under both schemes have now vested.


If the options remain unexercised after a period of ten years from the date of grant, the options expire. Options are forfeited if the employee leaves the Group. The number and weighted average exercise price (WAEP) of share options are as follows:


2011 No.


Outstanding at 1 January Expired during the year


Outstanding at 31 December Exercisable at 31 December


1,318,528 (408,628)


909,900 909,900


Earliest


WAEP £


2.43 3.45


1.96 1.96


2010 No.


1,614,150 (295,622)


1,318,528 1,318,528


At 31 December 2011 the following options granted under the 1995 and 2002 ESOS to acquire Ordinary Shares were outstanding: No. of options


Grant date


19 March 2003 9 March 2004


outstanding 399,343


510,557 exercise date


1 January 2012 1 January 2012


Exercisable before


19 March 2013 9 March 2014


WAEP £


2.37 2.14


2.43 2.43


Exercise price


139.00p 240.83p


The options outstanding at 31 December 2011 have a weighted average outstanding term of 1.8 years (31 December 2010: 2.3 years).


WAEP £


1.56 1.51 1.71


1.45 1.71


No.


534,288 (293,178) (44,008)


197,102 7,747


2010


WAEP £


1.56 1.53 1.73


1.56 1.51


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