0 million 31 million fair value of all optionsawards

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

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

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)