ANNUAL REPORT 2001 - Prudential plc

Directors’ Share Options
The Restricted Share Plan replaced the Executive Share Option Scheme (ESOS) in 1995 as the Group’s primary long-term incentive
plan. Outstanding options under ESOS remain in force and are set out below together with options under the Savings-Related Share
Option Scheme. The Savings-Related Share Option Scheme is open to all UK and certain overseas employees and options up to Inland
Revenue limits are granted at a 20 per cent discount and cannot normally be exercised until a minimum of three years has elapsed.
Options Options Exercise Earliest Latest
outstanding at Granted Exercised outstanding at price exercise exercise
1 Jan 2001 in year in year 31 Dec 2001 (pence) date date
Keith Bedell-Pearce 189,000 189,000 201 1995 2002
105,000 105,000 328 1996 2003
60,500 60,500 309 1997 2004
2,267* 2,267* 344 2003 2003
3,259* 3,259* 359 2003 2004
360,026 360,026
Jonathan Bloomer 196,750 196,750 315 1998 2005
226,750 226,750 315 2000 2005
7,677* 7,677* 254 2002 2002
2,247* 2,247* 751 2005 2005
433,424 433,424
Philip Broadley 1,327* 1,327* 730 2003 2004
Michael McLintock 4,538* 4,538* 380 2003 2003
Mark Tucker 4,074* 4,074* 254
2,172* 2,172* 359 2003 2004
1,348* 1,348* 751 2005 2005
1,041* 1,041* 648 2006 2007
7,594 1,041 4,074 4,561
Mark Wood 2,835* 2,835* 648 2008 2009
* Savings-Related Share Option Scheme.
Notes
1. The market price of shares at 31 December 2001 was 796 pence. The highest and lowest share price during 2001 were 1,095 pence and 568 pence
respectively.
2. The market price of shares was 778 pence when Mark Tucker exercised options of 4,074 shares, resulting in a gain on exercise of £21,348.
3. Keith Bedell-Pearce will be entitled to exercise his Savings-Related share options as a result of his retirement.
Directors’ Pensions
It is the Company’s policy to offer executive directors the facility to save for retirement through efficient pension vehicles. Changes
were introduced by the UK Government in 1989 which restrict the pension provision which can be made under Inland Revenue
approved pension schemes for new entrants after 31 May 1989 to benefits on annual basic salary up to a threshold known as the
earnings cap. The earnings cap for the 2001/2002 tax year is £95,400 per annum. For this reason executive directors employed since
1989 are offered a combination of Inland Revenue approved pension schemes and supplementary provision.
Inland Revenue approved pension schemes
Directors are eligible for one of two Inland Revenue approved pension schemes on the same basis as other employees.
The Prudential Staff Pension Scheme (PSPS) is a non-contributory defined benefit scheme, which provides a pension of 1/60 of Final
Pensionable Earnings for each year of service on retirement at age 60 with an option to commute pension for a tax-free cash sum. The
scheme also provides on death in service, a lump sum of four times Pensionable Salary, a spouse’s pension of the greater of 25 per
cent of Pensionable Salary or 54 per cent of prospective pension at 60, and childrens’ pensions of the greater of 8.33 per cent of
Pensionable Salary or 18 per cent of prospective pension at 60 in accordance with the scheme rules. On death in retirement, a
spouse’s pension of 50 per cent of the pension available at retirement before commutation is payable and a lump sum is also payable
if death occurs in the first five years of retirement. Some of the pension payable is guaranteed to increase in line with the Retail Prices
Index capped at five per cent, but in recent years all pensions in payment have been increased fully in line with the Retail Prices Index.
31 Prudential plc Annual Report 2001