Annual Report 2006 - Venture Corporation Limited

notes to financial statements
December 31, 2006
22 SHARE-BASED PAYMENTS
Equity-settled share option scheme
The company has share option schemes for qualifying employees of the company and the group. The schemes are
administered by the Remuneration Committee. Options are exercisable at a price determined with reference to market
price of shares at the time of grant of the options. The vesting period is 1 year. If the options remain unexercised after
a period of 5 years from the date of grant, the options would expire. Options are forfeited if the employee leaves the
group.
Details of the share options outstanding during the year are as follows:
Number
of share
options
The Company and the Group
2006 2005
Weighted
average Number
exercise of share
price options
Weighted
average
exercise
price
$ $
Outstanding at beginning of the year 14,607,000 15.85 19,927,000 13.63
Granted during the year 2,816,000 14.28 2,291,000 18.29
Forfeited during the year (1,976,000) 17.00 (748,000) 18.68
Exercised during the year (3,191,000) 8.92 (5,893,000) 9.14
Expired during the year (153,000) 12.27 (970,000) 14.60
Outstanding at end of the year 12,103,000 17.16 14,607,000 15.85
Exercisable at end of the year 9,339,000 18.02 12,327,000 15.40
The weighted average share price at the date of exercise for share options exercised during the year was $8.92 (2005:
$9.14). The options outstanding at the end of the year have a weighted average remaining contractual life of 2.8 years
(2005: 2.8 years).
granted in 2006
Options were granted on September 15, 2006, with the estimated fair value of the options granted at $2.72 per option.
Under this scheme, values were calculated using the trinomial model with the following inputs:
Share price at valuation date $13.20
Exercise price $14.275 (1)
$12.562 (2)
$11.991 (3)
$11.420 (4)
Expected volatility 37%
Exercise multiple (times) 1.3
Risk free rate 3.08%
Expected dividend yield 3.72%
(1)
if exercised between September 15, 2007 and September 14, 2008
(2)
if exercised between September 15, 2008 and September 14, 2009
(3)
if exercised between September 15, 2009 and September 14, 2010
(4)
if exercised between September 15, 2010 and September 14, 2011
76 venture corporation limited