AS AT 30 JUNE 2011
28
Directors’ Report (continued)
Summary of performance targets for performance rights
%
of tranche
EPS hurdle – % of tranche performance rights vesting
tied to
(applicable to 80% of each tranche)
KPI hurdle
Equal to or
Size
Equal to
Equal to
Equal to more than
(percentage of
5% EPS
10% EPS
15% EPS
20% EPS
initial grant)
growth
growth
growth
growth
Tranche
% Vesting date
%
%
%
%
%
1
25 1 Sep 2010
10
33
75
100
20
2
25 1 Sep 2010
25
75
100
–
20
3
25 1 Sep 2010
25
75
100
–
20
4
25 1 Sep 201 1
25
100
–
–
20
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 performance rights will not be permitted. Tranche 1 performance
rights that do not vest on the measurement of the EPS hurdle will be taken to have lapsed under the plan rules.
Retesting of the EPS hurdle for any unvested Tranche 2, 3 and 4 performance rights 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 grant date of the performance rights to the relevant retesting date. Performance will be measured on a
compounding basis. The performance rights that do not vest on retesting will be taken to have to have lapsed under the
plan rules.
Details of the deferred shares
The details of the deferred shares issued to J DeLano are set out below:
Instrument
Each deferred share represents an entitlement to one ordinary share.
Exercise price
Nil
Tranche components 50% of each tranche of deferred shares relates to vesting condition 1
50% of each tranche of deferred shares relates to vesting condition 2