BP 2010 Annual Report Download - page 130

Additionalinformationforshareholders
Employee share plans
Thefollowingtableshowsemployeeshareoptionsgranted.
 Optionsthousands
2010 2009 2008
Employeeshareoptionsgranted
duringtheyeara10,420 9,680 8,063
a  Fortheoptionsoutstandingat31December2010,theexercisepricerangesandweightedaverage
remainingcontractuallivesareshowninFinancialstatements–Note41onpage214.
BPoffersmostofitsemployeestheopportunitytoacquireashareholding
inthecompanythroughsavings-relatedand/ormatchingshareplan
arrangements.BPalsousesperformanceplans(seeFinancial statements
– Note 41 on page 214)aselementsofremunerationforexecutive
directorsandsenioremployees.
Sharesacquiredthroughthecompany’semployeeshareplansrank
paripassuwithsharesinissueandhavenospecialrights,saveas
describedbelow.Forlegalandpracticalreasons,therulesoftheseplans
setouttheconsequencesofachangeofcontrolofthecompany,and
generallyprovideforoptionsandconditionalawardstovestonan
acceleratedbasis.
Savings and matching plans
BPShareSavePlan
Thisisasavings-relatedshareoptionplanunderwhichemployeessaveon
amonthlybasis,overathree-orve-yearperiod,towardsthepurchaseof
sharesataxedpricedeterminedwhentheoptionisgranted.Thispriceis
usuallysetata20%discounttothemarketpriceatthetimeofgrant.The
optionmustbeexercisedwithinsixmonthsofmaturityofthesavings
contract,otherwiseitlapses.TheplanisrunintheUKandoptionsare
grantedannually,usuallyinJune.Participantsleavingforaqualifyingreason
willhavesixmonthsinwhichtousetheirsavingstoexercisetheiroptions
onapro-ratedbasis.
BPShareMatchplans
ThesearematchingshareplansunderwhichBPmatchesemployees’own
contributionsofsharesuptoapredeterminedlimit.Theplansareruninthe
UKandinmorethan60othercountries.TheUKplanisrunonamonthly
basiswithsharesbeingheldintrustforveyearsbeforetheycanbe
releasedfreeofanyincometaxandnationalinsuranceliability.Inother
countries,theplanisrunonanannualbasiswithsharesbeingheldintrust
forthreeyears.Theplanisoperatedonacashbasisinthosecountries
wherethereareregulatoryrestrictionspreventingtheholdingofBPshares.
WhentheemployeeleavesBPallsharesmustberemovedfromtrustand
unitsundertheplanoperatedonacashbasismustbeencashed.
Onceshareshavebeenawardedtoanemployeeundertheplan,
theemployeemayinstructthetrusteehowtovotetheirshares.
Localplans
Insomecountries,BPprovideslocalschemebenets,therulesand
qualicationsforwhichvaryaccordingtolocalcircumstances.
Cash-settledshare-basedpayments
Grantsaresettledincashwhereparticipantsarelocatedinacountry
whoseregulatoryenvironmentprohibitstheholdingofBPshares.
Employeeshareownershipplans(ESOPs)
ESOPshavebeenestablishedtoholdBPsharestosatisfyanyreleases
madetoparticipantsundertheExecutiveDirectors’IncentivePlan,the
Long-TermPerformancePlanandtheShareOptionplans.TheESOPshave
waivedtheirrightstodividendsonsharesheldforfutureawardsandare
fundedbythegroup.Pendingvesting,theESOPshaveindependent
trusteesthathavethediscretioninrelationtothevotingofsuchshares.
Untilsuchtimeasthecompany’sownsharesheldbytheESOPtrustsvest
unconditionallyinemployees,theamountpaidforthosesharesisdeducted
inarrivingatshareholders’equity(seeFinancial statements – Note 40 on
page 210).AssetsandliabilitiesoftheESOPsarerecognizedasassetsand
liabilitiesofthegroup.
At31December2010,theESOPsheld11,477,253shares(2009
18,062,246sharesand200829,051,082shares)forpotentialfuture
awards,whichhadamarketvalueof$82million(2009$174millionand
2008$220million).
PursuanttothevariousBPgroupshareoptionschemes,the
followingoptionsforordinarysharesofthecompanywereoutstandingat
18February2011:
 Expirydates  Exerciseprice
Optionsoutstanding(shares) ofoptions  pershare
261,526,262 2011-2016 $6.09-$11.92
MoredetailsonshareoptionsappearinFinancialstatements–Note41on
page214.
Majorshareholdersandrelated
partytransactions
Register of members holding BP ordinary shares as at
31 December 2010
 Numberof Percentageof Percentageof
 ordinary totalordinary totalordinary
Rangeofholdings shareholders shareholders sharecapital
1-200   59,514 18.86 0.02
201-1,000  118,266 37.48 0.30
1,001-10,000 124,516 39.46 1.80
10,001-100,000 11,488 3.64 1.12
100,001-1,000,000 960 0.30 1.72
Over1,000,000a 809 0.26 95.04
Totals   315,553 100.00 100.00
 IncludesJPMorganChaseBankholding25.88%ofthetotalordinaryissuedsharecapital(excluding
sharesheldintreasury)astheapproveddepositaryforADSs,abreakdownofwhichisshownin
thetablebelow.
Register of holders of American depositary shares (ADSs) as at
31 December 2010a
  Percentage
 Numberof oftotalADS Percentageof
Rangeofholdings ADSholders holders totalADSs
1-200   64,433 55.73 0.46
201-1,000  32,209 27.85 1.89
1,001-10,000 17,933 15.51 5.85
10,001-100,000 1,051 0.91 2.18
100,001-1,000,000 11 0.00 0.21
Over1,000,000b 1 0.00 89.41
Totals   115,638 100.00 100.00
aOneADSrepresentssix25centordinaryshares.
bOneholderofADSsrepresentssome795,382underlyingshareholders.
Asat31December2010,therewerealso1,630preferenceshareholders.
Preferenceshareholdersrepresented0.44%andordinaryshareholders
represented99.56%ofthetotalissuednominalsharecapitalofthe
company(excludingsharesheldintreasury)asatthatdate.
a
128BPAnnualReportandForm20-F2010