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Vodafone – Financials
Notes to the Consolidated Financial Statements continued
20. Share-based payments continued
Summary of options outstanding and exercisable at 31 March 2008
Outstanding Exercisable
Weighted Weighted
average average
Weighted remaining Weighted remaining
Outstanding average contractual Exercisable average contractual
shares exercise life shares exercise life
Millions price Months Millions price Months
Vodafone Group Savings Related and Sharesave Scheme:
£0.01 – £1.00 12 £0.93 27 – – –
£1.01 – £2.00 12 £1.21 32 – – –
24 £1.07 30 – – –
Vodafone Group Executive Schemes:
£1.01 – £2.00 5 £1.60 6 5 £1.60 6
£2.01 – £3.00 23 £2.75 25 23 £2.75 25
28 £2.53 22 28 £2.53 22
Vodafone Group 1999 Long Term Stock Incentive Plan:
£0.01 – £1.00 69 £0.90 51 69 £0.90 51
£1.01 – £2.00 247 £1.47 70 141 £1.49 46
316 £1.34 66 210 £1.29 48
Other Share Option Plans:
£1.01 – £2.00 2 £1.21 43 2 £1.21 43
£2.01 – £3.00 2 £2.05 47 2 £2.05 47
Greater than £3.01 1 £3.20 33 1 £3.20 33
5 £1.78 43 5 £1.78 43
Vodafone Group 1999 Long Term Stock Incentive Plan:
$10.01 – $30.00 1 $18.15 48 1 $17.59 46
Fair value
ADS options Ordinary share options
Board of directors and
Other Executive Committee Other
2008 2007 2006 2008 2007 2006 2008 2007 2006
4-5 5-6 8-9 4-5 5-6 6-7 4-5 5-7 8-9
Expected share price volatility 25.5-33.5% 27.3-28.3% 17.9-18.9% 25.7-27.7% 24.0-27.7% 17.6-18.6% 25.5-33.5% 25.5-28.3% 17.9-18.9%
Dividend yield 3.8-4.2% 5.1-5.5% 2.8-3.2% 4.0-4.4% 4.8-5.5% 2.6-3.0% 3.8-4.2% 5.1-6.1% 2.8-3.2%
Risk free rates 4.4-5.7% 4.8% 4.2% 5.5% 4.7-4.9% 4.2% 4.4-5.7% 4.6-4.9% 4.2%
Exercise price (1) £1.67-1.76 £1.15 £1.36 £1.68 £1.15-1.36 £1.45 £1.67-1.76 £1.14-1.16 £1.36
Note:
(1) In the years ended 31 March 2008 and 31 March 2007, there was more than one option grant.
The fair value of options is estimated at the date of grant using a lattice-based option valuation model, which incorporates ranges of assumptions for inputs as
disclosed above. Certain options granted to the Board of directors and Executive Committee have a market based performance condition attached and hence the
assumptions are disclosed separately.
Share awards
Movements in non-vested shares during the year ended 31 March 2008 are as follows:
All Shares Other Total
Weighted Weighted Weighted
average fair average fair average fair
value at value at value at
Millions grant date Millions grant date Millions grant date
1 April 2007 33 £1.13 197 £1.04 230 £1.05
Granted 19 £1.55 89 £1.38 108 £1.41
Vested (15) £1.26 (50) £1.11 (65) £1.15
Forfeited (3) £1.26 (23) £1.09 (26) £1.11
31 March 2008 34 £1.30 213 £1.16 247 £1.18
Other information
The weighted average grant date fair value of options granted during the 2008 financial year was £0.34 (2007: £0.22, 2006: £0.30).
The total fair value of shares vested during the year ended 31 March 2008 was £75 million (2007: £41 million, 2006: £18 million).
The compensation cost included in the Consolidated Income Statement in respect of share options and share plans for continuing operations was £107 million
(2007: £93 million, 2006: £109 million), which is comprised entirely of equity-settled transactions. Including discontinued operations, the compensation cost
included in the Consolidated Income Statement in respect of share options and share plans in total was £107 million (2007: £93 million, 2006: £114 million).
The average share price for the year ended 31 March 2008 was 166 pence.
114 Vodafone Group Plc Annual Report 2008