macquarie.com.au  2014 Annual Financial Report  Macquarie Group Limited and its subsidiaries  Notes to the financial statements  for the financial year ended 31 March 2014  continued  Note 33  Employee equity participation  continued  Option Plan  There were no options issued in the financial year. The number of outstanding options as at 2 May 2014 is 80,879.  The market value of shares issued during the year as a result of the exercise of these options was $19.8 million (2013: $1.6 million). The market value of shares which would be issued from the exercise of the outstanding options at 31 March 2014 was $4.68 million  (2013: $324 million). No unissued shares, other than those referred to above, are under option under the MGESOP as at the date of  this report.  The options were measured at their grant dates based on their fair value and the number expected to vest. This amount is  recognised as an expense evenly over the respective vesting periods and the equity provided is treated as a capital contribution.  168  Exercise price range $  Number of  options  2014  Remaining life (years)  2014  Number of  options  2013  Remaining life (years)  2013  10 – 20  –  –  14,668  0.94  20 – 30  –  –  156,991  0.90  30 – 40  22,358  0.25  292,629  0.82  40 – 50  15,102  0.56  176,279  0.63  50 – 60  43,419  0.49  8,046,447  0.37  60 – 70  –  –  38,384  0.10  80,879  0.43  8,725,398  0.40  The above tables exclude options that are not exercisable due to the failure to meet performance hurdles.  The weighted average remaining contractual life for the share options outstanding as at 31 March 2014 was 0.43 years (2013: 0.40  years). The weighted average remaining contractual life when analysed by exercise price range is :  For options exercised during the financial year the weighted average share price at the date of exercise was $46.98 (2013: $31.42).  The range of exercise prices for options outstanding at the end of the financial year was $36.35 to $54.92 (2013: $17.10 to $63.09).  (1) Consolidation applied to Options held in the MGESOP as at the record date for the consolidation (2) Some of the exercise prices reflect the impact of the SYD Distribution, a distribution of the majority of the Group’s investment in Sydney  Airport stapled securities (SYD Securities) to its ordinary shareholders implemented through a special dividend and a capital reduction  along with a consolidation of one MGL share into 0.9438 of an ordinary share.  The Company suspended new offers under the MGESOP under the remuneration arrangements which were the subject of  shareholder approvals obtained at the General Meeting of the Company in December 2009. The last grant of Options under the  MGESOP was on 8 December 2009. The Company does not currently expect to issue any further Options under the MGESOP.  Options now on issue are all five year options over unissued ordinary fully paid shares in the Company and were granted to  individuals or an individual’s controlled Company or an entity approved under the MGESOP to hold options. The options were  issued for no consideration and were granted at prevailing market prices.  At 31 March 2014 there were 24 (2013: 1,460) participants in the MGESOP.  The following is a summary of the movement in options granted pursuant to the MGESOP:  Number of options  2014  Weighted  average  exercise  price 2014 (2) $  Number of options  2013  Weighted  average  exercise  price 2013  $  Outstanding at the beginning of the financial year  8,725,398  52.63  19,585,781  60.13  Adjustment of Options due to 0.9438 for one ordinary share consolidation (1) (6,456)  42.79  –  –  Forfeited during the financial year  (1,200)  50.35  (1,755,821)  48.53  Exercised during the financial year  (423,159)  31.72  (52,676)  26.34  Lapsed during the financial year  (8,213,704)  53.76  (9,051,886)  69.79  Outstanding at the end of the financial year  80,879  48.31  8,725,398  52.63  Exercisable at the end of the financial year  80,879  48.31  8,630,026  52.78 