Mercer undertakes for the committee an assessment of whether the performance condition applying to the vesting of any option has been met following the announcement of the results for the financial year. This assessment is reviewed by the company’s auditors.
The committee is examining with management the effects of the transition of accounting rules from UK GAAP to IFRS on the share options outstanding from 7 November 2002 under the Approved and No 2 Schemes. The real EPS growth performance measurement periods for vesting of these grants will straddle accounting periods using both standards and the committee will need to balance consistency with the costs of restating accounts and maintaining fairness of treatment of optionholders. Early calculations suggest that backward or forward restatement will not result in material change and may not be appropriate.
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