Report of The Board in relation to remuneration policy and practice
10.3.4 Long Term Incentive Plan – Share Options
HBOS Executive Directors are not awarded executive share options.
The share options under the Bank of Scotland plans are exercisable in accordance with the rules of the plans, all performance targets having been satisfied, as set out in last year’s report.
No further share options have been or can be granted under these plans.
Details of the options outstanding under the plans in respect of Executive Directors are set out below:
| Option effective from | At 31.12.06/ 01.01.07 |
Granted (G) Exercised (E) or Lapsed (L) in year | At 31.12.07 | Share option price £ | |
| Colin Matthew | Oct 97 | 28,000 | 28,000 (E) | 5.3533 | |
| Oct 98 | 5,223 | 5,223 (E) | 5.7433 | ||
| Oct 98 | 29,777 | 29,777 (E) | 5.8350 | ||
| May 00 | 40,000 | 40,000 (E) | 5.5150 | ||
| Oct 00 | 40,000 | 40,000 (E) | 6.1000 | ||
| 143,000 |
Notes to Table 7
Note 1:
On 28 March 2007, Colin Matthew exercised options over 28,000 shares granted effective from October 1997 and 35,000 shares granted effective from October 1998; and on 29 May 2007, exercised 40,000 shares granted effective from May 2000 and 40,000 shares granted effective from October 2000. The closing market price of the Group’s ordinary shares on these dates of exercise were £10.46 and £10.68, respectively. The aggregate gain on exercise was £695,141.
Note 2:
Details of the market price of the Group’s ordinary shares during 2007 are given in Section 10.3.8.
Note 3:
Jo Dawson and Dan Watkins have share options under the HBOS all-employee plan which were granted before they were appointed Executive Directors or to Level 9 or Level 8. Jo Dawson has options over 3,727 shares granted effective from April 2002 at an option price of £7.512. These are exercisable between 1 January 2008 and 14 April 2008. Dan Watkins has options over 5,192 shares granted effective from March 2004 at an option price of £7.125. These are exercisable between 1 January 2008 and 15 March 2010. There are no performance conditions.