23
FLEXIGROUP LIMITED FINANCIAL REPORT 2011
The relative proportions of ongoing remuneration that are linked to performance and those that are fxed are as follows:
Fixed remuneration
At Risk – STI
At Risk – LTI
2011
2010
2011
2010
2011
2010
Name
%
%
%
%
%
%
Executives of FlexiGroup
J DeLano
Chief Executive Ofcer
32
31
39
35
29
34
G McLennan
Chief Financial Ofcer
56
53
29
27
15
20
N Roberts
Head of National Sales
63
50
17
20
20
30
D Klotz
Head of Operations
65
58
17
15
18
27
P Laughton
Chief Information Ofcer
76
63
11
13
13
24
C. Service agreements
Remuneration and other terms of employment for the Chief Executive Ofcer and the other Key Management Personnel
are formalised in service agreements. Each of these agreements can provide for the provision of short-term performance
incentives, eligibility for the FlexiGroup Long Term Incentive Plan (“LTIP”), other benefts including the use of a Company
motor vehicle, tax advisory fees, payment of benefts forgone at a previous employer, relocation, living, tax equalisation,
travel and accommodation expenses while an executive is required to live away from their normal place of residence.
All employment agreements are unlimited in term but capable of termination on up to three months notice by either the
Company or the executive. The Company can make a payment in lieu of notice.
In the event of retrenchment, the executives listed in the table on page 21 are entitled to the payment provided for in the
service agreement. The employment of the executives may be terminated by the Company without notice by payment
in lieu of notice.
The service agreements also contain confdentiality and restraint of trade clauses.
D. Share-based compensation – FlexiGroup Limited arrangements
The FlexiGroup Long-Term Incentive Plan (“LTIP”) is part of FlexiGroup’s remuneration strategy and is designed to align
the interests of FlexiGroup management and shareholders and assist FlexiGroup in the attraction, motivation and retention
of executives. In particular, the LTIP is designed to provide relevant executives with an incentive for future performance, with
conditions for the vesting and exercise of options and performance rights under the LTIP encouraging those executives
to remain with FlexiGroup and contribute to the future performance of the Group. The Company’s founding shareholders
approved the terms, the implementation and the operation of the LTIP on 20 November 2006.
Under the LTIP, eligible persons participating in the LTIP may be granted options and/or performance rights on terms and
conditions determined by the Board from time to time. An option and a performance right are both rights to acquire a share,
subject to the satisfaction of applicable vesting and/or exercise conditions. The main diference between an option and
a performance right is that an exercise price as determined by the Board is required to be paid to exercise a vested option,
whereas a performance right has nil exercise price unless otherwise determined by the Board. Options and performance
rights granted under the plan carry no dividend or voting rights.