Bradken Limited Annual Report 2015 - page 122

87 l BRADKEN LIMITED ANNUAL REPORT 2015
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
30 June 2015
(continued)
35 Share based payments (continued)
(b) Performance Rights Plan (continued)
(a)
(b)
The Company's average EPS growth is below 5%
The Company's average EPS growth equals 5%
The Company's average EPS growth is between 5% and 15%
The Company's average EPS growth equals or exceeds 15%
Summary of Rights issues in the plan:
Grant date
Number of
Rights
Fair value per
Right
32,987
$3.39
1,030,714
$3.39
14,968
$4.96
29,936
$4.53
881,326
$3.96
142,151
$4.43
1,503
$4.11
3,005
$4.11
488,884
$4.11
354,538
$3.05
174,900
$1.98
The movements in Rights issues in the plan are as follows:
100
In assessing whether the performance hurdles have been met, the Human Resources Committee receives independent data
from an investment bank which provides both the Company's TSR/EPS from previous financial years and in the case of TSR
performance that of the ASX Small Cap Industrial Index. In the case of the TSR hurdle the Company's performance is then
compared with each Company in the ASX Small Cap Industrial Index and Bradken is ranked in order of TSR in results from
previous financial years. The Company's TSR percentile ranking is determined by aggregating the weighting within the ASX
Small Cap Industrial Index (based on market capitalisation) of each company ranked below Bradken. The method of
assessment was chosen for executives as it provides the Committee with an objective means of measuring the Company's
performance against its peer group. Dividends, changes in share price, and return of capital are included in the TSR calculation.
With respect to the EPS measure, the EPS of the Company for a financial year is the amount determined by the Board to be the
NPAT of the Company for the financial year divided by the weighted average number of Shares in the Company over the
financial year. This measure ensures alignment of key personnel with shareholder returns.
Once vested the performance rights are exercised on the final test date depending on the conditions of the grant.
New entrants to the schemes are provided with a transition to the 3 year plan. Rights granted under the PRP carry no dividend
or voting rights. The terms and conditions of each grant of Rights affecting remuneration in the previous, this or future reporting
periods are as follows:
The EPS performance conditions in relation to the grants issued are:
adding the EPS Growth for each of the three financial years comprising the Performance Period; and
dividing that figure by three, being the number of financial years comprising the Performance Period.
Financial periods in which Rights
may vest
30 June 2018
30 June 2018
30 June 2018
21 August 2014
30 June 2017
23 October 2012
30 June 2015 / 2016
19 September 2013
30 June 2015 / 2016
19 September 2013
30 June 2016 / 2017
Result for performance period
There were no other Rights eligible for issuance under the scheme at 30 June 2015.
23 October 2012
30 June 2016
21 August 2014
21 August 2014
21 August 2014
21 October 2014
30 June 2017
Percentage of Rights available
in given year to vest
0
50
Pro rata between 50 and 100
For all other key personnel the long term incentive (LTI) is paid wholly on Earnings Per Share (EPS) performance over a 3 year
period. The initial rights for these personnel are provided based on a range of 20% to 30% of the key personnel’s total cash base
remuneration depending on the position held. No rights vest to the key personnel if Bradken's average EPS growth over a 3 year
period is below 5% and no re-testing occurs. The Average EPS Growth for the Company for the Performance Period is
determined by:
19 September 2013
30 June 2017
22 October 2013
30 June 2017
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