AS AT 30 JUNE 2011
36
Directors’ Report (continued)
Details of options over ordinary shares in the Company provided as remuneration to each Director of FlexiGroup Limited and
each of the Key Management Personnel of the parent entity and the group are set out below. When exercisable, each option
and performance right is convertible into one ordinary share of FlexiGroup Limited. Further information on the options and
performance rights is set out in note 37 to the fnancial statements.
Number of
Value of Number of Number of
options and options and options and options and
performance performance performance performance
rights granted rights granted rights vested rights lapsed
during
during
during
during
Value at
Name
the year
the year
the year
the year
lapse date*
Directors of FlexiGroup Limited
M Jackson
–
–
–
–
–
J DeLano
–
–
11,297,148** 87,256
2,181
A Abercrombie
–
–
–
–
–
R Dhawan
–
–
–
–
–
R J Skippen
–
–
–
–
–
Executives of FlexiGroup Limited
G McLennan
1,100,000
1,042,078 727,455
–
–
N Roberts
350,000 351,750 773,241 535,649 214,260
D Klotz
1,000,000 950,395
1,149,859
–
–
P Laughton
550,000 453,750 1,029,240
8,561
3,424
* The value at lapse date of the options and performance rights that were granted as part of remuneration and that lapsed during the
year because a vesting condition was not satisfed. The value is determined at the time of lapsing, but assuming the condition was
satisfed.
** Options granted over 7,046,753 shares by former shareholders of Flexirent Holdings Pty Limited in favour of John DeLano of the
Company are not dilutive as the shares have already been issued.
The assessed fair value at grant date of options, performance rights and deferred shares granted to the individuals is
allocated equally over the period from grant date to vesting date, and the amount is included in the remuneration table
on page 21. Fair values at grant date are independently determined using a binomial tree option pricing methodology that
takes into account the exercise price, the term of the options and performance rights, the impact of dilution, the share price
at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate
for the term of the options and performance rights.
The model inputs for performance rights and deferred shares granted during the year ended 30 June 2011 included:
a) Exercise price: various per performance rights and deferred shares granted
b) Grant date: various per performance rights and deferred shares granted
c) Expiry date: various per performance rights and deferred shares granted
d) Share price at grant date: various per performance rights and deferred shares granted
e) Expected price volatility of the Company’s shares: 40% (2010: n/a)
f) Expected dividend yield: 5% – 5.5% (2010: n/a)
g) Risk-free interest rate: 4.38% – 4.97% (2010: n/a)
Shares provided on exercise of remuneration options
No ordinary shares in the Company were issued as a result of the exercise of any remuneration options.