RBS 2011 Annual Report Download - page 333

RBS Group 2011 331
Share-based payments
As described in the Remuneration report on pages 272 to 295, the Group grants share-based awards to employees principally on the following bases:
Award plan Eligible employees Nature of award (1) Vesting conditions (2) Issue dates
Sharesave UK, Republic of Ireland, Channel
Islands, Gibraltar and Isle of Man
Option to buy shares under employee
savings plan
Continuing employment or
leavers in certain circumstances
2012 to 2019
Deferred performance
awards
All Awards of ordinary shares Continuing employment or
leavers in certain circumstances
2012 to 2014
Restricted share awards Senior employees Awards of conditional shares Continuing employment or
leavers in certain circumstances
and/or achievement of
performance conditions
2012 to 2014
Long-term incentives (3) Senior employees Awards of conditional shares or share
options
Continuing employment or
leavers in certain circumstances
and/or achievement of
performance conditions
2012 to 2019
Notes:
(1) Awards are equity-settled unless international comparability is better served by cash-settled awards.
(2) All awards have vesting conditions and therefore some may not vest.
(3) Long-term incentives include the Executive Share Option Plan, the Long-Term Incentive Plan and the Medium-Term Performance Plan.
(4) The strike price of options and the fair value on granting awards of fully paid shares is the average market price over the five trading days preceding grant date.
Sharesave
2011
2010 2009
Average
exercise price
£
Shares
under option
(million)
Average
exercise price
£
Shares
under option
(million)
Average
exercise price
£
Shares
under option
(million)
At 1 January 0.48 1,012 0.50 1,038 2.88 84
Granted 0.23 298 0.43 147 0.38 1,176
Exercised 0.38 (7) 0.38 (5) — —
Cancelled 0.41 (664) 0.45 (168) 0.77 (222)
At 31 December 0.34 639 0.48 1,012 0.50 1,038
Options are exercisable within six months of vesting; 3 million were exercisable at 31 December 2011 (2010 - 23 million; 2009 - 26 million). The
weighted average share price at the date of exercise of options was 42p (2010 - 45p; 2009 - not applicable). At 31 December 2011, exercise prices
ranged from 23p to 393p and the average contractual life was 3.7 years (2010 - 38p to 393p and 3.3 years; 2009 - 38p to 393p and 3.2 years). The fair
value of options granted in 2011 was £43 million (2010 - £48 million; 2009 - £220 million).
Deferred performance awards
2011 2010
Value at
grant
£m
Shares
awarded
(million)
Value at
grant
£m
Shares
awarded
(million)
At 1 January 1,009 2,665 — —
Granted 258 578 1,043 2,755
Forfeited (47) (125) (34) (90)
Vested (464) (1,205) — —
At 31 December 756 1,913 1,009 2,665
The awards granted in 2011 vest evenly over the following three anniversaries.
Restricted share awards
2011
2010 2009
Value at
grant
£m
Shares
awarded
(million)
Value at
grant
£m
Shares
awarded
(million)
Value at
grant
£m
Shares
awarded
(million)
At 1 January 110 335 117 325 48 31
Granted — — 26 55 94 309
Exercised (6) (26) (6) (15) (16) (5)
Lapsed (4) (10) (27) (30) (9) (10)
At 31 December 100 299 110 335 117 325
The market value of awards exercised in 2011 was £11 million (2010 - £6 million; 2009 - £2 million).