Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

Notes to the Financial Statements Continued
21 Senior Executive Share Incentive Schemes continued
Movements for the year:
66 Mandarin Oriental International Limited
2008 2007
Weighted Weighted
average average
exercise exercise
price Options price Options
US$ in millions US$ in millions
At 1st January 0.94 31.1 0.72 31.2
Granted 1.69 8.9 1.88 5.6
Exercised 0.60 (9.7 ) 0.62 (5.6 )
Repurchased and cancelled 1.88 (0.3 ) 0.99 (0.1 )
At 31st December 1.27 30.0 0.94 31.1
The average share price during the year was US$1.69 (2007: US$2.13) per share.
Outstanding at 31st December:
Ordinary shares in millions
Exercise price
Expiry date US$ 2008 2007
2008 0.5 – 0.9 – 2.9
2009 0.7 – 0.8 1.2 1.9
2010 0.5 – 0.7 2.8 4.6
2011 0.6 0.4 1.2
2012 0.4 0.6 1.7
2013 0.3 – 0.4 0.4 1.0
2014 0.6 0.6 0.8
2015 0.8 – 1.0 2.4 3.6
2016 1.0 – 1.4 7.4 7.8
2017 1.9 5.3 5.6
2018 1.1 – 1.7 8.9 –
Total outstanding 30.0 31.1
of which exercisable 7.6 15.9
The fair value of options granted during the year, determined using the Trinomial valuation model, was
US$5.6 million (2007: US$5.0 million). The significant inputs into the model, based on the weighted average
number of options issued, were share price of US$1.63 (2007: US$1.98) at the grant date, exercise price shown above,
expected volatility based on the last three years of 41% (2007: 33%), dividend yield of 3.16% (2007: 1.4%), option
life disclosed above, and annual risk-free interest rate of 3.5% (2007: 4.5%). Options are assumed to be exercised at
the end of the third year following the date of grant.