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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
Short-Term Incentive Plan (Deferral) – 2012, 2013 and 2014 Awards
During the period 2012 to 2014, a percentage of the amount which was earned by executives as a short-term incentive for each financial
year was paid in cash, and a percentage delivered as deferred share rights, vesting of which was deferred for one to two years without
any additional performance measures. The Company has the ability to reduce the number of shares to be issued under share rights if
subsequent events show such a reduction to be appropriate. In making this determination, the Company may consider material changes
or reversals in the Group’s financial position or profitability from one period to the next.
For each financial year, deferred share rights were granted following the determination of individual short-term incentive payments. The
number of deferred share rights granted was determined by reference to the five day volume weighted average price of fully paid ordinary
shares in the company over the five days following the Company’s full year results announcement.
The deferred share rights were granted for no cost to the employee and entitle the participant to receive one fully paid ordinary share in
the Company per right.
Amount recognised during the reporting period: Gain $0.1 million (31 December 2015: Gain $0.3 million).
2012 STI Deferral award 2013 STI Deferral award 2014 STI Deferral award
Date of grant
1 Jan 2013
1 Jan 2014
1 Jan 2015
Date of performance period end
31 Dec 2014
31 Dec 2015
31 Dec 2015
Grant fair value
1
$23.32
$17.51
$20.85
Original grant
193,907
299,953
76,448
Unvested rights at 31 December 2014
126,764
286,113
-
-
Granted
-
-
76,448
-
Vested
2
(124,455)
-
-
-
Forfeited/Lapsed
(2,309)
(51,633)
-
Unvested rights at 31 December 2015
-
234,480
76,448
-
Granted
-
-
-
-
Vested
3
-
(234,480)
(76,448)
-
Forfeited/Lapsed
-
-
-
Unvested rights at 31 December 2016
-
-
-
1
The fair values were calculated using a five day volume weighted average price over the five days following the Company’s full year results
announcement.
2
The volume weighted average share price during the reporting period to 31 December 2015 was $22.96.
3
The five day volume weighted average share price up to and including 23 February 2016 was $29.48.
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