0 million 31 million Fair value of all optionsawards granted in the year 14

0 million 31 million fair value of all optionsawards

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3.0 million 3.1 million Fair value of all options/awards granted in the year . . . . . . . . £14 million £5 million £13 million 2008 Weighted average assumptions Risk free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.0% 5.0% 5.0% Expected life of the options . . . . . . . . . . . . . . . . . . . . . . . . . 60 months 36 months 36 months Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17% 15% Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0% 3.0% 3.0% Weighted average share price . . . . . . . . . . . . . . . . . . . . . . . . 1072p 1088p 1067p Weighted average fair value of options/awards granted in the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188p 269p 660p Number of options/awards granted in the year . . . . . . . . . . . 7.6 million 2.9 million 2.1 million Fair value of all options/awards granted in the year . . . . . . . . £14 million £8 million £14 million The risk free interest rate is based on the UK treasury coupon strips in effect at the time of the grant, for the expected life of the option. The expected life of the options represents the period of time that options granted are expected to be outstanding. The group uses historical data to estimate option exercise and employee termination within the valuation model. Expected volatility is based on implied volatilities from traded options on the group’s shares, historical volatility of the group’s shares and other factors. 225
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Notes to the consolidated financial statements (continued) 34. Employee share compensation (continued) Option holdings in the following tables are stated as ordinary share equivalents in pence. Options prices are translated at the following exchange rates: grants at actual exchange rates; exercises and cancellations at average exchange rates; and closing balances at year end exchange rates. (a) Outstanding options Options over ordinary shares and over ADSs (US schemes only) outstanding at 30 June 2010 are as follows: Weighted average Weighted Range of remaining average exercise Number at contractual exercise prices 30 June life price pence 2010 months pence Executive share option plans . . . . . . . . . . . . . . . . . . . . 600-699 1,743,696 23 643 700-799 3,524,606 42 741 800-899 5,125,167 72 847 900-999 11,117,363 89 955 1000-1099 8,195,173 95 1046 1100-1199 4,531,388 88 1146 1200-1299 4,196,444 98 1237 1300-1399 91,900 92 1346 1400-1499 2,807,664 86 1409 41,333,401 82 1009 Savings plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500-599 17,421 9 569 600-699 488,172 10 653 700-799 2,179,883 38 748 800-899 3,817,773 24 846 900-999 431,471 12 962 1000-1099 140,648 14 1014 1100-1199 42,396 9 1157 1200-1299 41,579 9 1248 7,159,343 26 817 226
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Notes to the consolidated financial statements (continued) 34. Employee share compensation (continued) (b) Transactions on schemes Transactions on the share option and share award plans and the weighted average grant date fair value for options and shares for the three years ended 30 June 2010 were as follows: Executive Executive share option share award plans Savings plans plans Weighted Weighted average average exercise exercise Number of price Number of price Number of options pence options pence awards Balance outstanding at 30 June 2007 . . . . . . 39,372,225 726 7,839,932 644 4,357,207 Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,630,791 1054 2,895,869 866 2,105,292 Exercised/awarded . . . . . . . . . . . . . . . . . . . . (7,281,171) 642 (2,350,804) 638 (473,387) Forfeited/expired . . . . . . . . . . . . . . . . . . . . . (998,740) 838 (609,522) 689 (295,971) Balance outstanding at 30 June 2008 . . . . . . 38,723,105 806 7,775,475 745 5,693,141 Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,899,101 992 3,001,884 840 3,074,613 Exercised/awarded . . . . . . . . . . . . . . . . . . . . (3,436,934) 719 (1,750,400) 612 (616,112) Forfeited/expired . . . . . . . . . . . . . . . . . . . . . (2,188,351) 946 (1,426,800) 1010 (894,916) Balance outstanding at 30 June 2009 . . . . . . 43,996,921 920 7,600,159 805 7,256,726 Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,241,770 966 2,751,197 794 4,102,143 Exercised/awarded . . . . . . . . . . . . . . . . . . . . (9,116,692) 786 (2,108,686) 751 (196,894) Forfeited/expired . . . . . . . . . . . . . . . . . . . . . (1,788,598) 943 (1,083,327) 902 (1,925,184) Balance outstanding at 30 June 2010 . . . . . . 41,333,401 1009 7,159,343 817 9,236,791 Number of options exercisable at: 30 June 2010 . . . . . . . . . . . . . . . . . . . . . . . 16,415,347 687 78,738 916 30 June 2009 . . . . . . . . . . . . . . . . . . . . . . . . 18,993,999 754 110,737 863 30 June 2008 . . . . . . . . . . . . . . . . . . . . . . . . 15,744,487 647 48,938 665 (c)
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