Annual Report 2011 - Mandarin Oriental Hotel Group

21 Share premium
Annual Report 2011 67
2011 2010
US$m US$m
At 1st January 179.0 173.6
Issued under share incentive schemes 1.1 5.4
At 31st December 180.1 179.0
Outstanding under share incentive schemes (0.4 ) (0.7 )
At 31st December 179.7 178.3
22 Senior Executive Share Incentive Schemes
The Senior Executive Share Incentive Schemes were set up in order to provide selected executives with options to
purchase ordinary shares in the Company.
The exercise price of the granted options is based on the average market price for the five trading days immediately
preceding the date of grant of the options. Options are vested in tranches over a period of up to five years and are
exercisable for up to ten years following the date of grant. Prior to the adoption of the 2005 Plan on 4th May 2005,
ordinary shares were issued on the date of grant of the options to the Trustee of the Schemes, Mandarin Oriental
Overseas (PTC) Limited, a wholly-owned subsidiary, which holds the ordinary shares until the options are exercised.
Under the 2005 Plan, ordinary shares may be issued upon exercise of the options.
The shares issued under the Schemes held on trust by the wholly-owned subsidiary are, for presentation purposes,
netted off the Company’s share capital in the consolidated balance sheet (refer note 20) and the premium attached to
them is netted off the share premium account (refer note 21).
Movements for the year:
2011 2010
Weighted Weighted
average average
exercise exercise
price Options price Options
US$ in millions US$ in millions
At 1st January 1.38 28.9 1.26 29.8
Granted 2.11 5.5 1.44 6.9
Exercised 1.01 (1.5 ) 0.98 (7.5 )
Repurchased and cancelled 1.57 (0.9 ) 1.09 (0.3 )
At 31st December 1.51 32.0 1.38 28.9
The average share price during the year was US$1.86 (2010: US$1.61) per share.