Scheme interests awarded during the financial year.

Scheme interests awarded during the financial year.

The following table shows the PSP awarded in 2013 and current performance to 31 December 2013.

(XLS:) PSP awarded in 2013 and current performance

 

% of March 2013 base salary

Face Value
£’000

Share price at award £

Max no. of shares

Threshold No of shares

L&G TSR as at 31.12.13

% of award vesting against FTSE 100 as at 31.12.13

% of award vesting against Bespoke Group as at 31.12.13

Percentage of total award vesting as at 31.12.13

This table has been audited by PwC.

Grant date 17 April 2013

Nigel Wilson

200%

1,500

1.6863

889,521

222,380

30.80

50%

32%

82%

John Pollock

200%

922

1.6863

547,055

136,764

30.80

50%

32%

82%

Mark Gregory

200%

922

1.6863

547,055

136,764

30.80

50%

32%

82%

Mark Zinkula

200%

922

1.6863

547,055

136,764

30.80

50%

32%

82%

The grants were made under the legacy 2004 PSP plan – see policy section.

The metrics are TSR, chosen to align outcomes with shareholder interests. The number of shares that vest is dependent on Legal & General’s relative TSR performance over a three-year period as follows:

(XLS:) Dependency of number of shares that vest on Legal & General's TSR performance

Legal & General’s TSR relative to the comparator group

% of award which vests

Below median

0%

Median (threshold)

25%

Between median and 80th percentile

25%–100%

80th percentile or above

100%

Vesting condition for half of the award measures the Group’s TSR versus the FTSE 100. Vesting condition for the other half measures TSR versus the insurance constituents in the FTSEurofirst 300 plus any FTSE 350 Life Insurance companies not in the FTSEurofirst 300. The constituents for this group are determined at the date of grant.

The two conditions are measured independently.

Performance against TSR conditions is independently reviewed by Kepler Associates.

The Remuneration Committee will also assess whether the TSR out-turn is reflective of the underlying financial performance of the company and may scale back vesting if deemed appropriate. The Committee has discretion only to reduce the level of award and may not increase it. The parameters which the Committee uses in making this assessment include, but are not limited to, market share, partnerships entered into and maintained, cost constraint, capital management, risk and shareholder perception.

The award was made in nil cost options. Any award vesting may be exercised at the end of the three-year performance period or at any time (excepting close periods) during the two-year period following vesting. The share price used to calculate the award is the average of the three days preceding grant.

OTHER OUTSTANDING AWARDS

For information, other outstanding PSP awards are shown below. These were granted in 2011 and 2012 in line with the legacy plan and have the same performance conditions and vesting ability as above.

(XLS:) Other outstanding awards

 

% of base salary

Face Value £’000

Share price at award £

Max no. of shares

% of Face Value vesting at threshold

L&G TSR as at 31.12.13

% of award vesting against FTSE 100 as at 31.12.13

% of award vesting against Bespoke Group as at 31.12.13

Percentage of total award vesting as at 31.12.13

1.

Mark Zinkula’s award, prior to his board appointment, was 200% of base salary split between the PSP and LGIM LTIP – see table below for LGIM LTIP details.

Grant date 27 April 2011

Nigel Wilson

200%

1,100

1.1660

943,396

235,849

107.60

50%

50%

100%

John Pollock

200%

823

1.1660

706,003

176,501

107.60

50%

50%

100%

Mark Gregory

200%

800

1.1660

686,106

171,527

107.60

50%

50%

100%

Mark Zinkula1

80%

320

1.1660

274,442

68,611

107.60

50%

50%

100%

Grant date 24 April 2012

Nigel Wilson

200%

1,117

1.1783

947,949

236,987

85.20

50%

50%

100%

John Pollock

200%

840

1.1783

712,871

178,218

85.20

50%

50%

100%

Mark Gregory

200%

836

1.1783

709,476

177,369

85.20

50%

50%

100%

Mark Zinkula1

80%

328

1.1783

278,359

69,590

85.20

50%

50%

100%

(XLS:) Additional grant to Nigel Wilson on appointment as Group chief executive

 

Max no. of shares

L&G TSR
as at 31.12.13

% of award vesting against FTSE 100
as at 31.12.13

% of award vesting against Bespoke Group
as at 31.12.13

Percentage of total award vesting
as at 31.12.13

Additional grant to Nigel Wilson on appointment as Group chief executive – follows 2012 performance period but vests on 14 August 2015

291,765

85.20

50%

50%

100%

LGIM LONG TERM INCENTIVE PLAN (LGIM LTIP) AWARDS

The table below shows the current outstanding awards for Mark Zinkula. As stated in the policy section, these awards were made prior to his Board appointment.

(XLS:) Current outstanding LGIM long term incentive plan (LGIM LTIP) awards – Mark Zinkula

Grant date

% of base salary

No. of notional shares

Face value at grant
£

Notional share price at grant
£

Maximum value of award on vesting
£

Value at 31.12.13
£

1.

Mark Zinkula’s award was 200% of base salary split between the LGIM LTIP and PSP. See above for PSP award.

28 March 20111

120%

126,850

480,000

3.78

960,000

423,053

1 March 20121

120%

92,877

492,000

5.30

984,000

249,547

OUTSTANDING SHARE BONUS PLAN (SBP) AWARDS

The table below shows the shares held under the SBP and those that were awarded or vested during 2013. The shares that vested relate to deferred AVP and, in the case of Mark Zinkula, include shares awarded when he was appointed as CEO LGIM and prior to him joining the Board. Part of these shares vested during 2013 and are shown in his single figure of remuneration. The shares awarded in 2013 relate to deferred AVP in relation to 2012 performance. The share price used to calculate the awards is the average of the three days preceding grant.

(XLS:) Outstanding Share Bonus Plan (SBP) awards

 

Awards outstanding at 1 January 2013

Awards granted in 2013

Grant price
£

Face value at grant price
£

Awards vesting in 2013

Awards outstanding at 31 December 2013

Nigel Wilson

655,156

165,069

1.6863

278,356

322,158

498,067

John Pollock

396,557

115,649

1.6863

195,020

128,833

383,373

Mark Gregory

335,613

104,947

1.6863

176,973

119,859

320,701

Mark Zinkula

478,704

103,715

1.6863

174,896

182,101

400,318

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