directors report and accounts 2006 - Table 5. Executive Directors' Long Term Incentive Plan awards over British American Tobacco p.l.c. ordinary shares of 25p - audited

 
 

 Table 5. Executive Directors' Long Term Incentive Plan awards over British American Tobacco p.l.c. ordinary shares of 25p - audited

 Performance period endingAward dateAt 1 Jan 2006 number of sharesAwarded in 2006 number of
shares		Vested in 2006
number of
shares		Lapsed in 2006
number of
shares		At 31 Dec 2006
number of
shares		Value vested
20062
£		Vesting date
P N Adams200519 Mar 200392,809 –71,555 21,254 –1,036,116 19 Mar 2006
 200617 Mar 2004105,132 –––105,132 –17 Mar 2007
 200717 May 2005143,442 –––143,442 –17 May 2008
 200815 Mar 2006–113,493 ––113,493 –15 Mar 2009
Total  341,383    362,067   
P A Rayner200519 Mar 200373,578 –56,728 16,850 –821,421 19 Mar 2006
 200617 Mar 200461,842 –––61,842 –17 Mar 2007
 200717 May 200565,091 –––65,091 –17 May 2008
 200815 Mar 2006–50,557 ––50,557 –15 Mar 2009
Total  200,511    177,490   
A Monteiro de Castro200519 Mar 200382,945 –63,950 18,995 63950 2925,996 19 Mar 2006
 200617 Mar 200474,211 –––74,211 –17 Mar 2007
 200717 May 200572,324 –––72,324 –17 May 2008
 200815 Mar 2006–55,788 ––55,788 –15 Mar 2009
Total  229,480    266,273   
Total of awards vested in 2006    192,233   2,783,533  

Notes:

  1. The closing mid-market price of ordinary shares in British American Tobacco p.l.c. on 19 March 2003 was 595.0p, 17 March 2004 was 810.5p, 17 May 2005 was 1,030.0p,15 March 2006 was 1,435.0p and 20 March 2006 was 1,448.0p (the vesting date of 19 March 2006 not being a business day).
  2. The vesting of the awards on 19 March 2006 was reported in the Company’s Directors’ Report & Accounts 2005 showing illustrative vesting values based on the mid-market price of ordinary shares of 1,328.0p at 23 February 2006, being the latest practicable date prior to publication of that Report. At the date of this Report, each of the Executive Directors, with the exception of Antonio Monteiro de Castro, had exercised the awards shown above. 
  3. The March 2004 award will vest on 17 March 2007 at 100 per cent in the manner described in the Remuneration report. For illustrative purposes only, the share price on 23 February 2007, being the latest practicable date prior to publication, was 1,584.0p, valuing the vesting awards as follows:
     Award
    granted
    number
    of shares    		Award
    vesting
    number
    of shares    		vesting
    illustrative
    value
    £
    P N Adams105,132 105,132 1,665,291
    P A Rayner61,842 61,842 979,577
    A Monteiro de Castro74,211 74,211 1,175,502
    Total241,185 241,185 3,820,370

  4. The performance conditions applicable to the awards that vested on 19 March 2006 and will vest on 17 March 2007 relate to an apportionment between measures relating to Total Shareholder Return (TSR) and earnings per share-based criteria with reference to a three year performance period. TSR combines both the share price and dividend performance of the Company as set against two comparator groups: (a) the FTSE 100 Index at the beginning of the performance period; and (b) a peer group of FMCG companies. A total of 50 per cent of the total award is based upon each of two separate measures (25 per cent for each measure). 25 per cent of the total award vests in full in the event of upper quartile performance by the Company relative to one of the comparator groups, 7.5 per cent of the total award will vest in the event of median performance, and then pro rata between these two points. The earnings per share measure applies to 50 per cent of the award. 50 per cent of the award will vest if earnings per share growth over the three year performance period is an average of at least 8 per cent per annum in excess of inflation; 10 per cent will vest if the same figure is at least 3 per cent in excess of inflation, and an award will vest pro rata between these two points. Similar criteria attach to the awards made on 17 May 2005 and 15 March 2006.
  5. There have been no variations in the terms and conditions of the LTIP interests during the year.
  6. The awards made in May 2005 and March 2006 are due to vest in May 2008 and March 2009 respectively. At 31 December 2006, the performance percentage reflecting performance to date, was 100 per cent for the May 2005 award and 48.3 per cent for the March 2006 award.