CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 184 185 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 20 EQUITY COMPENSATION BENEFITS By a subsidiary Millennium & Copthorne Hotels Limited (M&C) The M&C Group used to operate a number of share option schemes, a majority of which were designed to link remuneration to the future performance of M&C Group. There were no options granted by M&C Group since 2020 in line with the final cash offer made by the Company to acquire the remaining interest in M&C at £6.85 per share (the “Final Offer”) in 2019 and any outstanding options are to close out per the final vesting dates. (i) Annual Bonus Plan Under the Annual Bonus Plan (“ABP”), deferred share awards were granted annually to selected employees of the M&C Group. Shares in M&C were to be transferred to participants as follows if they continue to be employed by the M&C Group: • 25% after years one and two; and • 50% after three years Following the cancellation of M&C ordinary shares on the London Stock Exchange’s main market for listed securities on 11 October 2019 (the “Delisting”), the shares awarded under the ABP will be cash settled at a fixed price of £6.85 per share in line with the Final Offer. (ii) Executive Share Plan The Executive Share Plan (“ESP”) was approved by M&C on 18 February 2016 to replace participation in the Long-Term Incentive Plan by senior executive management. These awards would vest over a three-year period (25% after years one and two, 50% after three years), subject to the rules of the Executive Share Plan. Following the Delisting, the shares awarded under the ESP will be cash settled at a fixed price of £6.85 per share in line with the Final Offer. 20 EQUITY COMPENSATION BENEFITS (CONT’D) Details of the options granted under the M&C Group option schemes on the unissued ordinary shares of £0.30 each in M&C Group, as at the end of the financial year, presented in Sterling Pound, are as follows: (i) Annual Bonus Plan Date of award Balance at beginning of year Awards made during the year Awards vested during the year Awards forfeited during the year Balance at end of year Share price prevailing on date of grant Fair value Vesting date £ £ 2020 13.05.2016 196 – – – 196 4.40 4.40 13.05.2017/18/19 14.06.2017 3,337 – (2,909) (428) – 4.62 4.62 14.06.2018/19/20 14.12.2018 23,901 – (8,306) (2,605) 12,990 4.68 4.48 to 4.61 14.12.2019/20/21 13.08.2019 31,814 – (10,392) (3,871) 17,551 6.80 6.85 13.08.2020/21/22 59,248 – (21,607) (6,904) 30,737 2021 13.05.2016 196 – – (196) – 4.40 4.40 13.05.2017/18/19 14.12.2018 12,990 – (12,599) (391) – 4.68 4.48 to 4.61 14.12.2019/20/21 13.08.2019 17,551 – (6,816) (695) 10,040 6.80 6.85 13.08.2020/21/22 30,737 – (19,415) (1,282) 10,040 (ii) Executive Share Plan Date of award Balance at beginning of year Awards awarded during the year Awards vested during the year Awards forfeited during the year Balance at end of year Share price prevailing on date of grant Fair value Vesting date £ £ 2020 15.08.2017 3,363 – (3,363) – – 4.65 4.42 to 4.57 15.08.2018/19/20 04.12.2018 11,672 – (1,526) (2,805) 7,341 4.66 4.47 to 4.60 04.12.2019/20/21 09.08.2019 15,784 – (3,764) (2,653) 9,367 6.80 6.85 09.08.2020/21/22 30,819 – (8,653) (5,458) 16,708 2021 04.12.2018 7,341 – (7,341) – – 4.66 4.47 to 4.60 04.12.2019/20/21 09.08.2019 9,367 – (7,287) – 2,080 6.80 6.85 09.08.2020/21/22 16,708 – (14,628) – 2,080
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