Page 169 - wesfarmersAR

Notes to the

fnancial

statements

for the year ended 30 June 2011 –

Wesfarmers Limited and its controlled entities

167

Wesfarmers Annual Report 2011

36: Share‑based payment plans (continued)

Wesfarmers Employee Share Acquisition Plan (WESAP)

The WESAP was introduced in October 2009. Under the plan, all eligible employees are invited to acquire fully‑paid ordinary shares in the

Company. The shares are either acquired under a salary sacrifce arrangement, or are granted as an award subject to the achievement of a

performance hurdle based on the Group achieving a benchmark net proft after tax performance against a comparative group of companies.

Eligibility for an award of shares is dependent upon an in‑service period with a participating division and being a permanent employee.

The Plan qualifes as a non‑discriminatory employee share scheme complying with the requirements of Division 83A of the

Income Tax

Assessment Act 1997

(as amended) for Australian resident employees.

Shares may be either acquired on‑market or issued by the parent. During the current fnancial year, 2,540,290 award shares were acquired

on‑market by the parent and 76,817 forfeited shares were reissued, with the cost being expensed over the vesting period from 1 July 2010 to

30 November 2013. The fair value of the services received from employees and of the equity instruments granted was determined by the total

cost to the Group of the shares issued.

The impact on the proft or loss is set out in note 4.

CONSOLIDATED

2011

2010

Shares acquired under the plan

2,617,107

2,790,833

Fair value per share

$33.15

$28.74

Coles Long Term Incentive Plan (CLTIP)

The Group provides benefts to certain executives under the CLTIP, in the form of cash‑settled share‑based payments, whereby executives can

make an election to receive an award in cash. The ultimate cost of these cash‑settled transactions will be equal to the actual cash paid to the

executives, which will be the fair value at settlement date. During the current fnancial year, 66,808 shares were acquired on‑market, with the

cost being expensed over the vesting period from 1 July 2008 to 30 June 2013. The fair value of the services received from employees and of

the equity instruments granted was determined by the total cost to the Group of the shares acquired on‑market.