Report of The Board in relation to remuneration policy and practice
10.3.5 Sharesave Plan
The sharesave plan is available to all UK based Group colleagues.
The plan allows colleagues to save a fixed amount of money on a monthly basis. At the end of a pre-determined period of three, five or seven years, colleagues have the right, if they so choose, to use the funds accumulated to purchase shares in the Group at a fixed price, based on a market price or an average market price determined around the invitation date and discounted by up to 20%. There are no performance conditions.
Certain Executive Directors have taken up membership of the plan and the projected numbers of shares which they would be entitled to purchase at the end of the relevant pre-determined periods are set out below:
Table 8
| Option effective from | At 31.12.06/ 01.01.07 | Granted (G), Exercised (E) or Lapsed (L) in year | At 31.12.07 | Exercisable | |
| Peter Cummings | Oct 01 | 600 | 600 (E) | ||
| Sep 02 | 549 | 549 | Jan 08 - Jun 08 | ||
| Sep 04 | 452 | 452 | Jan 08 - Jun 08 | ||
| Sep 05 | 791 | 791 | Jan 11 - Jun 11 | ||
| Sep 06 | 238 | 238 | Jan 10 - Jun 10 | ||
| 2,630 | 2,030 | ||||
| Jo Dawson | Sep 03 | 1,607 | 1,607 (E) | ||
| Sep 06 | 2,065 | 2,065 | Jan 12 - Jun 12 | ||
| 3,672 | 2,065 | ||||
| Phil Hodkinson | Sep 02 | 2,970 | 2,970 | Jan 10 - Jun 10 | |
| 2,970 | 2,970 | ||||
| Andy Hornby | Sep 03 | 1,607 | 1,607 (E) | ||
| Sep 06 | 2,216 | 2,216 | Jan 14 - Jun 14 | ||
| 3,823 | 2,216 | ||||
| Dan Watkins | Sep 03 | 642 | 642 (L) | ||
| Sep 04 | 1,044 | 1,044 | Jan 08 - Jun 08 | ||
| Sep 06 | 826 | 826 | Jan 12 - Jun 12 | ||
| 2,512 | 1,870 |
Notes to Table 8
Note 1:
Options under these plans were granted using market prices around the dates of the invitations, discounted by 20%, as follows:
| Effective date of grant | Share option |
| price £ | |
| Oct 01 | 5.62 |
| Sep 02 | 5.975 |
| Sep 03 | 5.74 |
| Sep 04 | 5.443 |
| Sep 05 | 6.912 |
| Sep 06 | 7.928 |
Note 2:
On 5 January 2007, Andy Hornby exercised options over 1,607 shares granted effective from September 2003. The closing market price of the Group’s ordinary shares on the date of exercise was £11.42. The aggregate gain on exercise was £9,128.
Note 3:
On 5 January 2007, Peter Cummings exercised options over 600 shares granted effective from October 2001 and on 12 January 2008 exercised options over 549 shares granted effective from September 2002 and 452 shares granted effective from September 2004. The closing market price of the Group’s ordinary shares on these dates of exercise were £11.42 and £6.62, respectively. The aggregate gain on exercise was £4,366.
Note 4:
On 6 April 2007, Jo Dawson exercised options over 1,607 shares granted effective from September 2003. The closing market price of the Group’s ordinary shares on the date of exercise was £10.50. The aggregate gain on exercise was £7,649.
Note 5:
Benny Higgins, who left on 31 December 2007, retains the right to exercise 2,065 share options which were granted in September 2006. The share options will remain exercisable until June 2008, after which they will lapse.
Note 6:
Details of the market price of the Group’s ordinary shares during 2007 are given in Section 10.3.8.