20645_Scapa_AR_160504

NOTES ON THE ACCOUNTS CONTINUED
FINANCIAL STATEMENTS
26. SHARE OPTIONS
Potential issues of ordinary shares
Certain senior managers and other staff hold options to subscribe for shares in the Company at prices ranging from nil pence per share to 159.0
pence per share under share option schemes approved by shareholders. The number of shares subject to options, the periods in which they
were granted, and the periods in which they may be exercised are given below:
Number of
options
2016
Number of
options
2015
Scheme
Year of grant
Average exercise
price per share
Exercise period
Performance share plan 2009 nil pence per share up to 6 September 2019 400,000 400,000
Performance share plan 2012 nil pence per share up to 3 September 2022 180,171 2,917,181
Performance share plan 2013 nil pence per share up to 23 July 2023 1,780,000 1,780,000
Performance share plan 2014 nil pence per share up to 24 July 2024 1,511,457 1,675,093
Performance share plan 2015 nil pence per share up to 22 July 2025 1,018,283 –
Sharesave option plan 3 year 2012 42.60p up to 1 September 2015 – 56,617
Sharesave option plan 5 year 2012 42.60p Up to 1 September 2017 45,773 45,773
Sharesave option plan 3 year 2015 159.00p up to 1 March 2019 501,556 –
5,437,240 6,874,664
During the year 56,617 options under the 2012 3-Year Sharesave option plan were exercised and 2,737,010 under the 2012 share
performance plan. All other movements from 2015 are expired or lapsed options and new grants. As at 31 March 2016, 45,773 options were
exercisable under the 2012 5-Year Sharesave option plan, 400,000 options were exercisable under the 2009 performance share plan and
180,171 were exercisable under the 2012 performance share plan.
The Group operates several share option schemes. Options are exercisable at a price equal to the average quoted market price of the Group’s
shares on the date of grant. Options are forfeited if the employee leaves the Group through resignation or dismissal before the options vest.
Equity settled share options are measured at fair value at the date of grant. The fair value determined at the date of grant is expensed on a
straight-line basis over the vesting period, based upon the Group’s estimate of shares that will eventually vest.
There are no cash-settled share options.
Fair value is measured by use of a Black Scholes model according to the relevant measures of performance. The models include adjustments,
based upon management’s best estimate, for the effects of exercise restrictions, behavioural considerations and expected dividend payments.
The option life is derived from models based upon these assumptions and other assumptions identified below.
The Group recognised total expenses of £1.8m (2015: £1.5m) related to equity-settled share-based payments. This expense includes the
charge for new options granted during the year net of release of charge for the options for which it has been concluded that vesting criteria
will not be met.
– Long-Term Incentive Plan
The Company has a long-term incentive plan that operates based on the 2004 and 2011 Performance Share Plans.
Options granted in 2009/10, and 2010/11 relate to the incentive plan known as the Scapa Group plc 2004 Performance Share Plan which was
approved by shareholders at the Annual General Meeting on 22 July 2004. Awards under the plan take the form of either an annual allocation
of ordinary shares or a grant of nil cost options over shares with a market value at the time of grant equivalent to a maximum of 100% of basic
salary at that time with vesting taking place at the expiry of the three-year performance period of the plan, subject to attainment of the
performance targets.
Awards in the form of an allocation of ordinary shares lapse at the end of the three-year performance period to the extent that the performance
conditions have not been met. Awards in the form of a nil cost option remain exercisable until their tenth anniversary of the date of grant, subject
to achievement of the performance conditions, after which they lapse.
Options granted in 2011/12, 2012/13, 2013/14, 2014/15 and 2015/16 relate to the 2011 incentive plan known as the Scapa Group plc 2011
Performance Share Plan, details of which can be found in the Directors’ Remuneration Report contained in these accounts.
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Scapa Group plc Annual Report and Accounts 2016
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ANNUAL REPORT AND ACCOUNTS 2016 SCAPA GROUP PLC