Annual Report & Accounts 2009 - Anglo Irish Bank

More documents

Recommendations

Info

Notes to the financial statements continued 10. Share-based payment schemes continued 66 Save As You Earn Scheme continued A US sub-plan complying with US legislation was put in place during 2006. This scheme permitted eligible employees to enter into a three or five year savings contract for three, five or seven year options. Employees were permitted to save a maximum of US$400 per month. Options were granted at a 25% discount to the market price on the date that employees were invited to enter into these contracts. All options outstanding in relation to the Swiss and Austrian versions of the scheme were either exercised or forfeited on the disposal of Anglo Irish Bank (Suisse) S.A. in February 2008 and Anglo Irish Bank (Austria) A.G. in December 2008. Following the Anglo Irish Bank Corporation Act, 2009, which extinguished all options under the SAYE scheme, participants were entitled to continue with their savings contract but were no longer able to use the proceeds to fund the exercise of options. Performance Share Plan ('PSP') On 1 February 2008 the shareholders approved the establishment of the Anglo Irish Bank Performance Share Plan ('PSP'). The Remuneration Committee granted conditional awards of ordinary shares to eligible employees under the terms of the scheme. PSP awards would only vest on the third anniversary of their grant if the financial performance, strategic risk and capital management of the Group over the performance period was satisfactory. Performance would be judged by the Remuneration Committee having considered the relevant performance measures over the period. The percentage of the original award which would vest was based on the Group’s Total Shareholder Return ('TSR') over the three-year period relative to a comparator group of financial services companies. TSR represents share price growth plus dividends. The percentage of awards that would vest was calculated as follows: Percentile TSR ranking of Group Percentage of total award shares to vest Less than 50% 0% Exactly 50% 50% Between 50% and 75% Between 50% and 100% on a straight-line interpolation basis Exactly 75% 100% Between 75% and 100% Between 100% and 125% on a straight-line interpolation basis Approved Profit Sharing Scheme ('APSS') The Group operated a share acquisition scheme on terms approved by the Irish Revenue. There were no vesting conditions and the scheme was open to all eligible employees in the Republic of Ireland. An APSS is a scheme whereby a company may allocate shares to qualifying employees and the employee is, subject to certain conditions, exempt from income taxes. Annually at their discretion the Directors set aside a sum of profits out of which a bonus was paid to employees. Eligible employees could elect to receive their profit share allocations either in the form of shares or in cash. Such shares were purchased in the open market and held by trustees for a minimum period of two years. The shares were required to be held by trustees for a total period of three years for the employees to obtain the maximum income tax benefit. Such employees could also elect to forgo an amount of salary, subject to certain limitations, and use the amount of salary forgone to fund the acquisition of additional shares. The maximum market value of shares that could be appropriated by any employee in a year could not exceed €12,700. Included in the share-based payment cost for the period is a cash settled share-based payment expense of €9m (30 September 2008: €9m) in relation to the profit sharing scheme, €2m (30 September 2008: €5m) of which was paid in shares, resulting in the trustees acquiring 4,048,938 (30 September 2008: 504,290) shares at a purchase price of €0.38 (30 September 2008: €10.74).
Deferred Share Scheme ('DSS') Under this scheme conditional share awards were granted to eligible Group employees as part of their remuneration package. These share awards were conditional on the relevant employees remaining in the Group's employment for three years from their grant date. The cost of the DSS was expensed evenly to the income statement over the three year vesting period. Movements in share awards Movements in share awards granted under Group share incentive plans were as follows: PSP Number of Weighted Number of Weighted conditional average conditional average awards grant price awards grant price '000 € '000 € Outstanding at beginning of period 498 9.37 - - Granted - - 498 9.37 Forfeited (293) 9.37 - - Extinguished (205) 9.37 - - Outstanding at end of period - - 498 9.37 DSS 15 months ended Year ended 31 December 2009 30 September 2008 15 months ended Year ended 31 December 2009 30 September 2008 Number of Weighted Number of Weighted conditional average conditional average awards grant price awards grant price '000 € '000 € Outstanding at beginning of period 1,125 11.98 1,104 11.65 Granted - - 478 10.64 Vested (358) 11.53 (278) 8.32 Forfeited (25) 12.87 (179) 12.06 Extinguished (742) 12.16 - - Outstanding at end of period - - 1,125 11.98 Anglo Irish Bank Annual Report & Accounts 2009 67
Page 1 and 2:
Annual Report & Accounts 2009
Page 3 and 4:
Contents Page Chairman’s statemen
Page 5 and 6:
Legacy matters The Bank is continui
Page 7 and 8:
Jim Brydie was appointed Head of Gr
Page 9 and 10:
Business review This business revie
Page 11 and 12:
Divisional lending balances by sect
Page 13 and 14:
holdings, reduced investment cash f
Page 15 and 16:
30 September 2008. Average total cu
Page 17 and 18: Income statement - treasury impairm
Page 19 and 20: to acquire these assets they are in
Page 21 and 22: Board of Directors Donal O’Connor
Page 23 and 24: In keeping with our environmental p
Page 25 and 26: Principal risks and uncertainties T
Page 27 and 28: Credit risk Credit risk is the risk
Page 30 and 31: Report of the Directors The Directo
Page 32 and 33: Corporate governance statement On 1
Page 34 and 35: Corporate governance statement cont
Page 36 and 37: Independent Auditors' report to the
Page 38 and 39: Consolidated income statement For t
Page 40 and 41: Consolidated statement of financial
Page 42 and 43: Consolidated statement of changes i
Page 44 and 45: Statement of cash flows For the 15
Page 46 and 47: Notes to the financial statements I
Page 48 and 49: Notes to the financial statements c
Page 118 and 119:
Notes to the financial statements c
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Supplementary information Consolida
Page 180:
www.angloirishbank.com Anglo Irish
show all

Annual Report & Accounts 2009 - Anglo Irish Bank

Create successful ePaper yourself

Delete template?

Save as template?