Annual report and financial statement 2009 - United Utilities

FINANCIAL STATEMENTSNotes to the financial statementscontinued27 SHARE-BASED PAYMENTS CONTINUEDDiscontinued operationsVertex performance share plan (Vertex PSP)The Vertex PSP was for senior executives of the group. Options under the Vertex PSP are exercisable no earlier than three years fromthe 31 March preceding the date of grant and have an exercise period of three months. Vertex PSP awards are subject to both a TSRperformance condition (a market-based measure of performance) and earnings before interest, taxation and amortisation (EBITA)and return on capital employed (ROCE) performance conditions (non-market based measures of performance).The Vertex PSP scheme was discontinued in line with the disposal of Vertex on 26 March 2007. Accordingly, all Vertex PSP options vestno later than 31 March 2009 and the remaining charge is considered to be inconsequential.The movement in total outstanding options in respect of grants of Vertex PSP equity instruments after 7 November 2002 unvested asof 1 April 2004, and therefore within the scope of IFRS 2, is provided below:WeightedaverageexerciseNumber of priceoptions £Outstanding at 1 April 2007 893,703 –Dividend re-investment 22,579 –Forfeited (7,476) –Expired (345,563) –Outstanding at 31 March 2008 563,243 –Dividend re-investment 14,106 –Expired (577,349) –Outstanding at 31 March 2009 – –Range of prices31 March 2009 –31 March 2008 –Weighted average share price at date of exercise31 March 2009 –31 March 2008 –Contractual remaining life31 March 2009 –31 March 2008 0.7 years90 unitedutilities.com