Macquarie Group Limited and its subsidiaries  2014 Annual Financial Report  macquarie.com.au  Notes to the financial statements  for the financial year ended 31 March 2014  continued  (1)  Represents SYD Distribution to ordinary shareholders recognised as return of ordinary share capital and consolidation of ordinary shares  on Sydney Airport stapled securities distribution. Refer note 5 - Dividends and distribution paid or provided for.  As at 31 March 2014, 80,879 (2013: 8,725,398) options granted to employees over unissued ordinary shares were on issue,  excluding options which cannot be exercised. For further information regarding the terms and conditions of the issue of options and  shares to employees refer to note 33—Employee equity participation. Disclosures regarding the Company’s DRP are included in  note 5 – Dividends and distributions paid or provided for.  Consolidated 2014  Number of  shares  Consolidated 2013  Number of  shares  Consolidated  2014  $m  Consolidated  2013  $m  Note 28  Contributed equity  Ordinary share capital  Opening balance of fully paid ordinary shares  339,506,578  348,584,383  6,882  7,127  Issue of shares on exercise of options  423,159  52,676  12  2  Issue of shares on exercise of MEREP awards  65,141  21,948  3  1  Issue of shares on retraction of exchangeable shares at $80.30 per share  11,774  379,687  1  30  Issue of shares on retraction of exchangeable shares with  vesting conditions at $50.80 per share  136,066  244,931  8  12  Issue of shares for nil cash consideration pursuant to the  retention agreements entered into with key Orion Financial Inc.  employees  –  32,002  –  –  Cancellation of shares under the share buyback program  in the range of $24.27 to $28.95 per share  –  (9,809,049)  –  (251)  Capital reduction through SYD distribution (1) –  –  (803)  –  Consolidation of one ordinary share into 0.9438 ordinary share (1) (19,067,968)  –  –  –  For employee MEREP awards that have vested during the  financial year:  Transfer of MEREP expense from share-based payments  reserve  –  –  195  160  Transfer of excess deferred tax on MEREP expense from  share-based payments reserve  –  –  14  –  Transfer from treasury shares for shares withdrawn  –  –  (237)  (199)  Closing balance of fully paid ordinary shares  321,074,750  339,506,578  6,075  6,882  142 