|NOTES TO THE FINANCIAL STATEMENTS|
The emoluments of the directors for the year ended 31 March 1996 were, in summary, as follows:
| 1996 |
|Payments to non-executive directors (a)||381||313|
|Payments to pension scheme||235||216|
|Provision for unfunded pensions||789||380|
(a) Payments to non-executive directors include fees paid to their principal employer of £24,000 (1995 - £39,000).
Pensions in respect of the management services of past and present directors paid by the company for the year ended 31 March 1996 were £84,000 (1995 - £82,000). The cumulative provision for present and past directors’ unfunded pension benefits at 31 March 1996 was £4,171,000 (1995 - £3,150,000), including the interest accounted for on the provision, and is based on actuarial advice.
More detailed information concerning directors’ remuneration, shareholdings, options and long-term incentive plans is shown in the report of the Board Committee on Executive Remuneration (Part 1 and Part 2).
|26. People employed||Year end|
|Number of employees in the group:|
27. Employee share schemes|
The company has a share ownership scheme used for employee share allocations (profit sharing), savings-related share option schemes for its employees and those of participating subsidiaries and further share option schemes for selected group employees. It also has a performance share plan which was introduced during the year and a long-term remuneration plan.
Share option schemes
Options outstanding under these share option schemes at 31 March, together with their exercise prices and dates, were as follows:
| Number of |
| Number of|
|Normal dates of exercise|| Option price|
| 1996 |
|Normal dates of exercise||Option price|
| 1996 |
|Savings-related schemes:||Other share option schemes:|
|Total options outstanding||257||329|
In the year ended 31 March 1996, options for 57 million shares were exercised under the share option schemes and options for
15 million shares lapsed. No significant options were granted in the year.
Long-term remuneration and performance share plans
A long-term remuneration plan (LTRP) and a performance share plan (PSP) were introduced for employees of the group in 1994 and 1995, respectively. Under the plans, company shares are acquired by an employee share ownership trust and are conditionally awarded to participants, although participants will only be entitled to these shares in full at the end of a five-year period under the LTRP and the end of a three-year period, which may be extended to four or five years, under the PSP if, at the end of the applicable period, the company has met the relevant pre-determined corporate performance measure and the participants are still employed by the group. Awards of shares were granted in 1994 and 1995 under the LTRP and in 1995 under the PSP. The corporate performance measure assesses the company’s overall performance against those top 100 companies listed on the London Stock Exchange, as rated by the Financial Times (the FT-SE 100 index), at the beginning of the relevant performance period.
27. Employee share schemes (continued)
|Value of range of possible future transfers: nil to||6.5||4.7||2.7|
|Provision for the costs of the plans charged to the profit and loss account in year||2.0||0.7||0.2|
|Nominal value of shares held in trust||0.4||0.4||0.2|
|Market value of shares held in trust||6.6||5.5||2.7|
The values of possible future transfers of shares under the plans were based on the company’s share price at 31 March 1996 of
369p (1995 - 391p). The provisions for the costs of the plans were based on best estimates of the company’s performance over
the plans’ performance periods, relating to those portions of the plan performance periods from commencement up to the
financial year end.
The following fees were paid or are payable to the company’s auditors, Coopers & Lybrand, in the UK for the year ended 31 March 1996:
|Audit of the company’s statutory accounts||1,170||1,164|
|Audits of the UK subsidiary undertakings’ statutory accounts||380||432|
|Other services, including regulatory audits and tax compliance work||4,004||3,049|
|In addition, fees of £1,364,000 (1995 - £637,000) were paid or are payable to other members of Coopers & Lybrand International for the year ended 31 March 1996 in respect of audit and other services to the company’s overseas subsidiary undertakings and in respect of other services to the group.|