Republic Bank Limited
142
For the year ended September 30, 2015. Expressed in thousands of Trinidad and Tobago dollars ($’000) except where otherwise stated
Notes to theConsolidatedFinancial Statements
4
Financial
27 EQUITY COMPENSATION BENEFITS
a) Profit sharing scheme
I
t is estimated that approximately $101 million (2014: $96 million) will be allocated to staff from the profit sharing scheme in
the current financial year. The total staff profit sharing for the Group was $118 million (2014: $109 million). Refer to Note 18.
During the 2015 financial year, $67 million in advances were made by Republic Bank (the Parent) for purchase of shares to the
staff profit sharing scheme (2014: $71 million).
b) Stock option plan
The Group has a stock option plan for senior executives. Under this arrangement, the holder has the right to purchase a specified
number of ordinary shares of Republic Bank Limited at a pre-determined price on or before a pre-determined date. Options are
granted only when certain pre-determined individual, corporate and strategic objectives are realised.
The plan provides that the maximum number of ordinary shares that may be purchased on the exercise of options is 7,950,650
shares and the maximum entitlement for any one executive is no more than 50% of the shares comprising the plan. There is
a three-year waiting period after the grant date of options before the grantee may exercise the right to purchase the shares
represented by the options. The maximum period within which an option may be exercised is ten years.
The option price shall be the Bank’s share price at the beginning of the performance period during which the option is earned.
The price is calculated as the average closing share price on all trading days during the calendar month, prior to the beginning of
the performance period. The process of assessment, calculation of options and approval by the Board of Directors takes place in
the first quarter following the end of the financial year.
The movement in outstanding options is outlined below:
Weighted average exercise price Number of shares
2015
2014
2015
2014
At the beginning of the year
$87.71
$84.04
1,791,585
1,980,702
Granted
$110.03
$104.41
355,800
362,833
Exercised
$81.67
$85.24
(336,120)
(551,950)
At end of year
$93.39
$87.38
1,811,265
1,791,585
Exercisable at end of year
$83.41
$85.40
859,349
1,209,734
