BP 2010 Annual Report Download - page 267

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ParentcompanynancialstatementsofBPp.l.c.
Financial statements
11.Share-basedpaymentscontinued
Thegroupusesavaluationmodeltodeterminethefairvalueofoptionsgranted.Themodelusestheimpliedvolatilityofordinarysharepriceforthequarter
withinwhichthegrantdateoftherelevantplanfalls.Thefairvalueisadjustedfortheexpectedratesofearlycancellation.Managementisresponsiblefor
allinputsandassumptionsinrelationtothemodel,includingthedeterminationofexpectedvolatility.
EDIP- EDIP-
Sharesgrantedin2010 CPP EPP TSR BSC RSP DAB PSP
Numberofequityinstrumentsgranted(million)  1.3 7.6 1.2 2.5 21.4 24.5 16.0
Weightedaveragefairvalue  $19.81 $9.43 $4.42 $8.94 $6.78 $9.43 $9.43
Fairvaluemeasurementbasis  Monte Market Monte Market Market Market Market
  Carlo value Carlo value value value value
      EDIP- EDIP-
Sharesgrantedin2009 CPP EPP TSR BSC RSP DAB PSP
Numberofequityinstrumentsgranted(million)  1.4 7.6 2.1 2.1 2.4 38.9 16.5
Weightedaveragefairvalue  $9.76 $6.56 $2.74 $7.27 $8.76 $6.56 $8.32
Fairvaluemeasurementbasis  Monte Market Monte Market Market Market Monte
     Carlo value Carlo value value value Carlo
    MTPP- MTPP- EDIP- EDIP-
Sharesgrantedin2008 TSR FCF TSR RETa RSP DAB PSP
Numberofequityinstrumentsgranted(million)  9.1 9.1 2.6 0.5 7.7 5.8 16.7
Weightedaveragefairvalue  $5.07 $10.34 $4.55 $11.13 $8.83 $10.34 $12.89
Fairvaluemeasurementbasis  Monte Market Monte Market Market Market Monte
     Carlo value Carlo value value value Carlo
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a  EDIP–retentionelement.
ThegroupusedaMonteCarlosimulationtodeterminethefairvalueoftheTSRelementofthe2010,2009and2008CPP,MTPPandEDIPplans,andin
2009and2008forthePSPplan.InaccordancewiththerulesoftheplansthemodelsimulatesBP’sTSRandcomparesitagainstourprincipalstrategic
competitorsoverthethree-yearperiodoftheplans.Themodeltakesintoaccountthehistoricdividends,sharepricevolatilitiesandcovariancesofBPand
eachcomparatorcompanytoproduceapredicteddistributionofrelativeshareperformance.Thisisappliedtotherewardcriteriatogiveanexpectedvalue
oftheTSRelement.
Accountingexpensedoesnotnecessarilyrepresenttheactualvalueofshare-basedpaymentsmadetorecipients,whicharedeterminedbythe
remunerationcommitteeaccordingtoestablishedcriteria.
12.Auditor’sremuneration
Feespayabletothecompany’sauditorfortheauditofthecompany’saccountswere$17million(2009$13millionand2008$16million).
Remunerationreceivablebythecompany’sauditorforthesupplyofotherservicestothecompanyisnotpresentedintheparentcompanynancial
statementsasthisinformationisprovidedintheconsolidatednancialstatements.
13.Directors’remuneration
 $million
Remunerationofdirectors     2010 2009 2008
Totalforalldirectors
 Emoluments      15 19 19
 Gainsmadeontheexerciseofshareoptions      2 2 1
 Amountsawardedunderincentiveschemes      4 2 –
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Emoluments
Theseamountscomprisefeespaidtothenon-executivechairmanandthenon-executivedirectorsand,forexecutivedirectors,salaryandbenetsearned
duringtherelevantnancialyear,plusbonusesawardedfortheyear.Alsoincludedwascompensationforlossofofce,of$3millionin2010,(2009niland
2008$1million).
Pension contributions
During2010threeexecutivedirectorsparticipatedinanon-contributorypensionschemeestablishedforUKstaffbyaseparatetrustfundtowhich
contributionsaremadebyBPbasedonactuarialadvice.TwoUSexecutivedirectorsparticipatedintheUSBPRetirementAccumulationPlanduring2010.
Ofce facilities for former chairmen and deputy chairmen
Itiscustomaryforthecompanytomakeavailabletoformerchairmenanddeputychairmen,whowerepreviouslyemployedexecutives,theuseofofce
andbasicsecretarialfacilitiesfollowingtheirretirement.Thecostinvolvedindoingsoisnotsignicant.
Further information
Fulldetailsofindividualdirectors’remunerationaregiveninthedirectors’remunerationreportonpages112to121.
TheparentcompanynancialstatementsofBPp.l.c.onpagesPC1–PC16donotformpartofBP’sAnnualReportonForm20-FasledwiththeSEC.
BPAnnualReportandForm20-F2010 PC15