25
FLEXIGROUP LIMITED FINANCIAL REPORT 2011
Summary of performance targets for options
%
of tranche
EPS hurdle – % of tranche options vesting
tied to
(applicable to 80% of each tranche)
KPI hurdle
5% or
Equal to or
Equal to more than
Equal to
Equal to
Equal to more than
prospectus prospectus
5% EPS
10% EPS
15% EPS
20% EPS
forecast EPS forecast EPS
growth
growth
growth
growth
Tranche
%
%
%
%
%
%
%
1
60
100
–
–
–
–
20
2
–
–
10
33
75
100
20
3
–
–
10
33
75
100
20
4
–
–
15
50
100
–
20
Not all options have a Tranche 1. Where performance falls between target EPS thresholds (e.g. more than 5% EPS but less
than 10% EPS) then pro-rata vesting will apply.
EPS is measured on an annual compounding basis to the relevant performance testing date using the Basic EPS of 13.0 cents
per share detailed above as the base line number. Where performance falls between target EPS thresholds (e.g. more than
5% EPS but less than 10% EPS) then pro-rata vesting will apply.
Retesting of the EPS hurdle for any unvested Tranche 1 options will not be permitted. Tranche 1 options that do not vest on
the measurement of the EPS hurdle will be taken to have lapsed under the LTIP rules.
Retesting of the EPS hurdle for any unvested Tranche 2, 3 and 4 options will occur at the testing date in respect of the next
fnancial year-end date immediately following the relevant initial testing date, with the measurement period taken from the
date of grant of the options to the relevant retesting date. Performance will be measured on a compounding basis. The
options that do not vest on retesting will be taken to have lapsed under the LTIP rules.
Options granted by former shareholders of Flexirent Holdings Pty Limited to John DeLano
Eighth SRJ Pty Limited as Trustee of the Philadelphia Trust and Viewlove Pty Limited as Trustee of David Berkman Family
Trust, both former shareholders of Flexirent Holdings Pty Limited, agreed at the time of the IPO to grant options over shares
owned by them. The options are over 5,665,779 shares and 1,380,974 shares respectively and are in favour of John DeLano.
These options are subject to the same terms and conditions, including achievement of performance hurdles and rights to
exercise, as the options issued on 8 December 2006 to the Directors of the Company and Key Management Personnel.
A share-based payment expense relating to the options granted by the former shareholders is included in the statement
of proft and loss and also in the total Key Management Personnel remuneration note on page 21.