BP 2012 Annual Report Download - page 253

Fair values and associated details for share units granted
For share units granted in 2012, the number of units and weighted average fair value at the date of grant were as shown below:
Share units granted in 2012
SVP
TSR
SVP
non-TSR RSP DAB
Number of share units granted (million) 0.5 60.3 11.2 19.6
Weighted average fair value $8.96 $7.78 $7.21 $7.78
Fair value measurement basis Monte Carlo Market value Market value Market value
Share units granted in 2011 CPP EPP RSP DAB PSP
Number of share units granted (million) 1.4 8.9 20.0 17.5 19.2
Weighted average fair value $11.99 $7.51 $6.86 $7.51 $7.51
Fair value measurement basis Monte Carlo Market value Market value Market value Market value
Share units granted in 2010 CPP EPP RSP DAB PSP
Number of share units granted (million) 1.3 7.6 21.4 24.5 16.0
Weighted average fair value $19.81 $9.43 $6.78 $9.43 $9.43
Fair value measurement basis Monte Carlo Market value Market value Market value Market value
The group uses the observable market price for ordinary shares at the date of grant to determine the fair value of non-TSR share unit awards.
The group used a Monte Carlo simulation to determine the fair values of the TSR elements of the 2012 SVP grant, the 2012, 2011 and 2010 EDIP grants
and the 2011 and 2010 CPP grants. In accordance with the plans’ rules, the model simulates BP’s TSR and compares it against its principal strategic
competitors over the three-year period of the plans. The model takes into account the historical dividends, share price volatilities and covariancesofBP
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 intended value of share-based payments made to recipients, which are determined by the
remuneration committee according to established criteria.
41. Employee costs and numbers
$ million
Employee costs 2012 2011 2010
Wages and salariesa10,357 9,827 9,242
Social security costs 898 851 789
Share-based payments 674 584 576
Pension and other post-retirement benefit costs 1,188 1,065 1,166
13,117 12,327 11,773
Number of employees at 31 Decemberb2012 2011 2010
Upstream 24,000 22,200 21,100
Downstreamc51,300 51,000 52,300
Other businesses and corporate 10,300 10,100 6,200
Gulf Coast Restoration Organization 100 100 100
85,700 83,400 79,700
By geographical area
US 23,400 22,900 22,100
Non-USc62,300 60,500 57,600
85,700 83,400 79,700
2012 2011 2010
Average number of employeesbUS Non-US Total US Non-US Total US Non-US Total
Upstream 9,300 13,900 23,200 8,500 13,200 21,700 8,100 13,500 21,600
Downstream 12,000 39,400 51,400 12,300 39,200 51,500 12,600 38,300 50,900
Other businesses and corporate 1,900 8,700 10,600 1,700 6,500 8,200 1,900 5,000 6,900
Gulf Coast Restoration Organization 100 – 100 100 – 100 – – –
23,300 62,000 85,300 22,600 58,900 81,500 22,600 56,800 79,400
aIncludes termination payments of $77 million (2011 $126 million and 2010 $166 million).
bReported to the nearest 100.
cIncludes 14,700 (2011 14,600 and 2010 15,200) service station staff.
Financial statements 251
BP Annual Report and Form 20-F 2012
Financial statements
40. Share-based payments continued