QBE European Operations plc
QBE European Operations plc
QBE European Operations plc
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<strong>QBE</strong> <strong>European</strong> <strong>Operations</strong> <strong>plc</strong> Annual report 2011<br />
60<br />
Notes to the financial statements<br />
continued<br />
For the year ended 31 December 2011<br />
8 Share based payments continued<br />
b) Employee options<br />
During the year one qualifying employee of this Group (2010 one) was granted options over ordinary shares of <strong>QBE</strong> with a total market value of<br />
A$348,000 (2010 A$410,000), based on the quoted market price at the date the options were granted. The weighted average fair value of options<br />
granted during the year ended 31 December 2011 was A$nil (2010 A$1.88).<br />
The market value of the options outstanding at the balance sheet date was A$36,991,000 (2010 A$78,574,000), calculated by reference to the quoted<br />
market value of the underlying shares at that date.<br />
Details of the number of employee options granted, exercised and forfeited or cancelled during the year, including those issued under the DCP,<br />
were as follows:<br />
2011<br />
Exercise Balance at Cancelled/ Balance at<br />
price 1 January Granted Exercised forfeited 31 December<br />
Grant date A$ 2011 in the year in the year in the year 2011<br />
2 March 2006 20.44 939,934 – (885,657) (54,277) –<br />
2 March 2007 32.68 704,534 – – (117,104) 587,430<br />
2 March 2007 20.44 20,000 – (20,000) – –<br />
4 March 2008 20.44 20,000 – (20,000) – –<br />
4 March 2008 24.22 1,010,356 – – (164,612) 845,744<br />
6 March 2009 17.57 1,586,689 – – (221,514) 1,365,175<br />
6 March 2009 20.44 20,000 – – – 20,000<br />
5 March 2010 20.44 20,000 – – – 20,000<br />
7 March 2011 20.44 – 20,000 – – 20,000<br />
4,321,513 20,000 (925,657) (557,507) 2,858,349<br />
Weighted average exercise price A$ 22.27 20.44 20.44 22.99 22.7<br />
The weighted average share price at the date of exercise of options during the year was A$18.09 (2010 A$21.05). The weighted average remaining<br />
contractual life of total options outstanding at 31 December 2011 was 2.4 years (2010 4.69 years).<br />
Employee options outstanding at 31 December 2011 were as follows:<br />
Year of expiry DCP Other Total options<br />
2012 60,000 60,000<br />
2013 587,430 587,430<br />
2014 845,744 845,744<br />
2015 1,365,175 1,365,175<br />
2,798,349 60,000 2,858,349<br />
Vested and exercisable at 31 December 2011 – – –<br />
The future performance options have been issued subject to the achievement of specific performance criteria.
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