88 | FINANCIAL STATEMENTS | Notes to the Consolidated Financial Statements
25. Share-based payments continued At 31 December 2012 the following Deferred Share Awards were outstanding:
Grant date 7 April 2010
10 March 2011 3 April 2012
No. of awards outstanding 12,783,798
10,866,239 1,307,450
Earliest exercise date 7 April 2013
10 March 2014 3 April 2015
The awards outstanding at 31 December 2012 have a weighted average outstanding term of 0.8 years (31 December 2011: 1.4 years).
(ii) Restricted Share Awards 2012 Awards The 2012 share awards under the LTRP are subject to specific underlying earnings per share (EPS) conditions and conditions of continued service being met. To the extent that the award does not vest in accordance with the performance criteria detailed below it expires immediately.
EPS for the year ended 31 December 2015 Less than 8.2p
8.2p
Between 8.2p and 11.1p 11.1p
Between 11.1p and 13.7p 13.7p or above
Percentage of award vesting 0%
20%
Pro rata between 20% and 75% on a straight-line basis 75%
Pro rata between 75% and 100% on a straight-line basis 100%
Pre 2012 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 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 expires 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 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
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