My first Publication ocbc_ar17_fullreport_english | Page 187

13. SHARE CAPITAL AND OTHER EQUITY (continued)
13.2 SHARE OPTION SCHEME
During the year, the Bank granted 9,587,008 (2016: 9,524,094) options to acquire ordinary shares in the Bank pursuant to OCBC Share
Option Scheme 2001. This included 772,350 (2016: 1,024,798) options granted to a director of the Bank. The fair value of options
granted, determined using the binomial valuation model, was $7.3 million (2016: $12.4 million). Significant inputs to the valuation
model are set out below:
Acquisition price ($)
Share price ($)
Expected volatility based on last 250 days historical volatility as of acceptance date (%)
Risk-free rate based on SGS bond yield at acceptance date (%)
Expected dividend yield (%)
Exercise multiple (times)
Option life (years)
2017 2016
9.60 – 12.32
9.64 – 12.39
12.94 – 14.73
2.11
3.22 – 4.27
1.74
10 8.81
8.95
20.08
1.83
4.02
1.78
10
Movements in the number of options and the average acquisition prices are as follows:
2017
Number
of options
At 1 January
Granted and accepted
Exercised
Forfeited/lapsed
At 31 December
Exercisable options at 31 December
Average share price underlying the options exercised
2016
Average
price
Number
of options
Average
price
40,887,286
9,587,008
(13,224,648)
(664,684)
36,584,962 $9.116
$9.603
$8.860
$9.825
$9.323 34,806,479
9,479,487
(1,544,200)
(1,854,480)
40,887,286 $9.109
$8.814
$6.739
$9.411
$9.116
18,796,148 $9.225
$10.712 25,188,639 $8.996
$8.690
At 31 December 2017, the weighted average remaining contractual life of outstanding share options was 7.0 years (2016: 6.4 years).
The aggregate outstanding number of options held by directors of the Bank was 4,624,417 (2016: 4,366,217).
BUILDING ON OUR CORPORATE STRATEGY FOR SUSTAINABLE GROWTH
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