Annual Report 2011 - Mandarin Oriental Hotel Group

68 Mandarin Oriental International Limited
Notes to the Financial Statements Continued
22 Senior Executive Share Incentive Schemes continued
Outstanding at 31st December:
Ordinary shares in millions
Exercise price
Expiry date US$ 2011 2010
2012 0.4 – 0.2
2013 0.4 – 0.1
2014 0.6 0.1 0.1
2015 0.8-1.0 0.5 1.2
2016 1.0-1.4 3.9 4.2
2017 1.9 3.8 4.3
2018 1.2-1.7 7.8 7.8
2019 0.7 4.1 4.1
2020 1.4 6.3 6.9
2021 2.1 5.5 –
Total outstanding 32.0 28.9
of which exercisable 16.9 10.0
The fair value of options granted during the year, determined using the Trinomial valuation model, was US$2.5 million
(2010: US$3.4 million). The significant inputs into the model, based on the weighted average number of options issued,
were share price of US$2.02 (2010: US$1.39) at the grant date, exercise price shown above, expected volatility based on
the last seven years of 26% (2010: 45%), dividend yield of 3.4% (2010: 4.87%), option life disclosed above, and annual
risk-free interest rate of 3.4% (2010: 3.7%). Options are assumed to be exercised at the end of the seventh year following
the date of grant.
23 Dividends
2011 2010
US$m US$m
Final dividend in respect of 2010 of US¢3.00 (2009: US¢5.00) per share 29.9 49.4
Interim dividend in respect of 2011 of US¢2.00 (2010: US¢2.00) per share 19.9 19.8
49.8 69.2
A final dividend in respect of 2011 of US¢4.00 (2010: US¢3.00) per share amounting to a total of US$39.8 million
(2010: US$29.9 million) is proposed by the Board. The final dividend proposed will not be accounted for until it has
been approved at the Annual General Meeting. The amount will be accounted for as an appropriation of revenue reserves
in the year ending 31st December 2012.