RBS 2012 Annual Report Download - page 379

RBS GROUP 2012
377
Share-based payments
As described in the Remuneration report on pages 320 to 342, 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
2013 to 2019
Deferred performance
awards
All Awards of ordinary shares Continuing employment or
leavers in certain circumstances
2013 to 2015
Restricted share awards Senior employees Awards of conditional shares Continuing employment or
leavers in certain circumstances
and/or achievement of
performance conditions
2013 to 2015
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
2013 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.
The number of shares and exercise prices for all previous share awards have been adjusted for the sub-division and one-for-ten consolidation of
ordinary shares in June 2012.
Sharesave
2012 2011 (1) 2010 (1)
Average
exercise price
£
Shares
under option
(million)
Average
exercise price
£
Shares
under option
(million)
Average
exercise price
£
Shares
under option
(million)
At 1 January 3.36 64 4.88 101 5.07 104
Granted 2.49 14 2.33 30 4.34 15
Exercised 2.37 — 3.80 (1) 3.80 (1)
Cancelled 3.76 (21) 4.11 (66)4.47 (17)
At 31 December 2.86 57 3.36 64 4.88 101
Note:
(1) Adjusted for the sub-division and one-for-ten consolidation of ordinary shares in June 2012.
Options are exercisable within six months of vesting; 0.2 million were exercisable at 31 December 2012 (2011 - 0.3 million; 2010 - 2.3 million). The
weighted average share price at the date of exercise of options was £2.78 (2011 - £4.21; 2010 - £4.51). At 31 December 2012, exercise prices ranged
from £2.33 to £39.27 and the average contractual life was 3.9 years (2011 - £2.33 to £39.27 and 3.7 years; 2010 - £3.80 to £39.27 and 3.3 years). The
fair value of options granted in 2012 was £28 million (2011 - £43 million; 2010 - £48 million).