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CIMIC Group Limited Annual Report 2016 |
Financial Report
Notes continued
for the 12 months to 31 December 2016
36. EMPLOYEE BENEFITS
CONTINUED
a) Rights plans
continued
1
Each 2014 LTI performance hurdle is tested over a three year performance period, which runs from 1 January. Performance hurdles are to
be tested in February following the announcement of full year results for the previous financial year.
2
The fair values were calculated at grant date using Monte-Carlo simulation pricing models. Volatility in share prices and expected dividend
levels were estimated based on historic levels for a period consistent with the relevant performance period.
3
The fair values were calculated at grant date using binomial tree pricing models. Volatility in share prices and expected dividend levels
were estimated based on historic levels for a period consistent with the relevant performance period.
4
This grant represents an amendment to an existing award.
5
The volume weighted average share price during the reporting period to 31 December 2015 was $22.96.
6
The volume weighted average share price during the reporting period to 31 December 2016 was $31.30.
One-Off Awards
One-off awards of Deferred Share Rights were granted under the Equity Incentive Plan (“EIP”) for no cost to the employee and entitle the
participant to receive one fully paid ordinary share in the Company per right. In 2012, 2013, and 2014 one-off awards were granted to
employees:
to replace existing cash-based service and retention arrangements where payment was due to vest over the longer-term; and
as one-off awards to new and existing employees for recruitment and retention purposes.
All share rights issued expire on the earlier of their vesting date where performance conditions are not met or termination of the
individual’s employment except in certain special circumstances. The only performance condition is continued employment.
Amount recognised during the reporting period: Expense $0.1 million (31 December 2015: Expense $0.5 million).
One-off Awards – 2012
Awards
One-off Awards – 2013
Awards
One-off Awards – 2014
Awards
Date of grant
1 Jan 2012 - 31 Dec 2012
3 May 2013
31 Oct 2014
Date of performance period end
5 Sep 2012 - 31 Dec 2017 31 Dec 2014 - 1 Jan 2017 31 Dec 2014 - 1 Jul 2017
Grant fair value
1
$16.20 -$25.66
$18.06
$16.18 - $21.50
Original grant
811,018
22,034
43,542
Unvested rights at 31 December 2014
307,980
16,497
37,650
-
Granted
2
-
-
12,930
-
Vested
3
(157,231)
-
(37,650)
-
Forfeited/Lapsed
(68,098)
(8,249)
-
Unvested rights at 31 December 2015
82,651
8,248
12,930
-
Granted
-
-
-
-
Vested
4
(70,831)
(4,124)
(6,651)
-
Forfeited/Lapsed
(9,317)
(4,124)
-
Unvested rights at 31 December 2016
2,503
-
6,279
1
The fair values were calculated using a five day volume weighted average share price up to and including the relevant reference date.
2
This grant represents an additional award in accordance with contractual entitlements.
3
The volume weighted average share price during the reporting period to 31 December 2015 was $22.96.
4
The volume weighted average share price during the reporting period to 31 December 2016 was $31.30.
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