Bradken Limited Annual Report 2015 - page 50

15 l BRADKEN LIMITED ANNUAL REPORT 2015
DIRECTORS’ REPORT
Bradken Limited
Directors' report (continued)
30 June 2015
C. Remuneration report (continued)
(e)
Share-based compensation (continued)
2.
(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%
Exercise
price
Fair value
per Right
$0.00
$4.76
$0.00
$3.39
$0.00
$3.39
$0.00
$4.96
$0.00
$4.53
$0.00
$3.96
$0.00
$4.43
$0.00
$4.11
$0.00
$4.11
$0.00
$4.11
$0.00
$3.05
$0.00
$1.98
21 August 2014
1 Jul 14 to 30 Jun 17
Result announcement y/e 17
Result announcement y/e 14
Final Test Date
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.
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:
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.
The EPS performance conditions in relation to the grants issued are:
Result for performance period
Percentage of Rights available
in given year to vest
0
50
Pro rata between 50 and 100
Test Date
(date vested and exercisable)
0
Grant Date
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:
Final Test Date
The Company’s TSR equals or exceeds performance of the median Company in ASX Small Cap
100
The Company’s TSR ranked in fourth quartile of companies in ASX Small Cap
7 October 2011
Result announcement y/e 14
Target
Expiry Date
Performance Period
Final Test Date
1 Jul 11 to 30 Jun 14
Result announcement y/e 14
Once vested the performance rights are exercised on the final test date depending on the conditions of the grant.
The Company’s TSR ranked in third quartile of companies in ASX Small Cap
Percentage of Rights available
in given year to vest
The Company’s TSR does not meet performance of the median Company in ASX Small Cap
100
The TSR performance conditions in relation to the grants issued are:
50
Pro rata between 50 and 100
Final Test Date
21 August 2014
1 Jul 14 to 30 Jun 15
23 October 2012
1 Jul 12 to 30 Jun 15
Result announcement y/e 15
1 Jul 14 to 30 Jun 17
Final Test Date
Result announcement y/e 17
Final Test Date
Final Test Date
Result announcement y/e 15
19 September 2013
21 August 2014
1 Jul 14 to 30 Jun 16
Result announcement y/e 16
23 October 2012
1 Jul 12 to 30 Jun 14
19 September 2013
1 Jul 13 to 30 Jun 15
Result announcement y/e 15
Final Test Date
1 Jul 13 to 30 Jun 14
Final Test Date
19 September 2013
1 Jul 13 to 30 Jun 16
Result announcement y/e 16
Final Test Date
22 October 2013
1 Jul 13 to 30 Jun 16
Result announcement y/e 16
Final Test Date
21 October 2014
1 Jul 14 to 30 Jun 17
Result announcement y/e 17
21 August 2014
Final Test Date
Details of Rights over ordinary shares in the Company provided as remuneration to each director of Bradken Limited and each of
the key management personnel are set out below. When exercisable, each Right is convertible into one ordinary share of
Bradken Limited. Further information on the Rights is set out in note 35 to the financial statements.
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