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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
OPERATING
PERFORMANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
213
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
31.
EQUITY COMPENSATION BENEFIT (continued)
Forfeitable shares (continued)
The performance condition for the fifth award grant vesting on 31 August 2015 of forfeitable shares is as
follows:
•
•
40% of the awards are allocated towards retention. In order to receive this portion of the allocation the
employee is required to be employed within the Group at the vesting date (31 August 2015).
•
•
60% of the awards are allocated on the basis of 50% for growth in core headline earnings per share and
10% for shareholder returns.
The 50% for growth in core headline earnings will be based on the following achievements:
•
•
If growth is 5% above CPI over three years, then 20% of the 50% will vest.
•
•
If growth is 10% above CPI over three years, then an additional 50% (i.e. a total of 70%) of the 50% will vest.
•
•
If growth is 25% above CPI over three years, then a further 30% (i.e. a total of 100%) of the 50% will vest.
The 10% for shareholder return will be based on a 10% compounded growth in the share price over the
three-year vesting period measured with reference to the weighted average price per share during the month
of the commencement of the allocation and the weighted average share price for the month during which
the vesting takes place, plus dividends over the three-year period of no less than three times dividend cover
on a grossed-up basis.
The performance condition for the sixth award grant vesting on 31 August 2016 of forfeitable shares is as
follows:
•
•
40% of the awards are allocated towards retention. In order to receive this portion of the allocation the
employee is required to be employed within the Group at the vesting date (31 August 2016).
•
•
60% of the awards are allocated on the basis of 50% for growth in core headline earnings per share and
10% for shareholder returns.
The 50% for growth in core headline earnings will be based on the following achievements:
•
•
If growth is 5% above CPI over three years, then 20% of the 50% will vest.
•
•
If growth is 10% above CPI over three years, then an additional 50% (i.e. a total of 70%) of the 50% will
vest.
•
•
If growth is 25% above CPI over three years, then a further 30% (i.e. a total of 100%) of the 50% will
vest.
The 10% for shareholder return will be based on a 10% compounded growth in the share price over the
three-year vesting period measured with reference to the weighted average price per share during the month
of the commencement of the allocation and the weighted average share price for the month during which
the vesting takes place, plus dividends over the three-year period of no less than three times dividend cover
on a grossed-up basis.