Annual Report and Accounts 2006 - DCC plc

46 report of the remuneration committeeShare optionsDCC plc 1998 Employee ShareOption SchemeExecutive Directors and other seniorexecutives participate in the DCC plc1998 Employee Share Option Scheme,which was approved by shareholdersin 1998. The Scheme encouragesidentification with shareholders’interests by enabling management tobuild, over time, a shareholding in theCompany which is material to theirnet worth.The percentage of share capital whichcan be issued under the Scheme, thephasing of the grant of options andthe limit on the value of options whichmay be granted to any individualcomply with guidelines publishedby the institutional investmentassociations. The Scheme providesfor the grant of both basic and secondtier options, in each case up to amaximum of 5% of the Company’sissued share capital. Basic tier optionsmay not normally be exercised earlierthan three years from the date ofgrant and second tier options notearlier than five years from the dateof grant.Basic tier options may normally beexercised only if there has beengrowth in the adjusted earnings pershare of the Company equivalent tothe increase in the Consumer PriceIndex plus 2%, compound, per annumover a period of at least three yearsfollowing the date of grant.Second tier options may normally beexercised only if the growth in theadjusted earnings per share over aperiod of at least five years is suchas would place the Company in thetop quartile of companies on theISEQ index in terms of comparisonof growth in adjusted earnings pershare and if there has been growth inthe adjusted earnings per share of theCompany equivalent to the increase inthe Consumer Price Index plus 10%,compound, per annum in that period.Directors are encouraged to holdtheir options beyond the earliestexercise date.The following are details of share options granted to Directors and the Company Secretary under the DCC plc 1998Employee Share Option Scheme:Executive DirectorsAt 31 March Granted in At 31 March Weighted average Normal exercise period2005 year 2006 exercise priceJim FlavinBasic tier 375,000 - 375,000 8.3364 June 2001 – Nov 2014Second tier 395,000 - 395,000 8.1063 June 2003 – Nov 2012Tommy BreenBasic tier 180,000 10,000 190,000 9.4260 June 2001 – Dec 2015Second tier 190,000 - 190,000 8.6786 June 2003 – Nov 2012Kevin MurrayBasic tier 180,000 10,000 190,000 9.4260 June 2001 – Dec 2015Second tier 190,000 - 190,000 8.6786 June 2003 – Nov 2012Fergal O’DwyerBasic tier 155,000 10,000 165,000 9.2972 June 2001 – Dec 2015Second tier 165,000 - 165,000 8.4366 June 2003 – Nov 2012Company SecretaryGerard WhyteBasic tier 75,000 7,500 82,500 10.1307 June 2001 – Dec 2015Second tier 80,000 - 80,000 8.8716 June 2003 – Nov 2012No options were exercised by or allowed to lapse by Directors or the Company Secretary under the DCC plc 1998Employee Share Option Scheme during the year.