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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
c) Options
Long-Term Incentive Plan – 2015 Award
Board approval was obtained on 28 October 2015 for a discretionary award of options over unissued ordinary shares in the Company to
be made to selected executives. The award of options was made under the legal framework of the EIP approved by shareholders on 22
May 2012. The exercise price is the volume weighted average price of fully paid ordinary shares in CIMIC over the five trading days
following Board approval of the award (excluding the date of the approval).
All options issued expire on the earlier of their expiry date or termination of the individual’s employment except in certain circumstances.
Options vest two years after the grant date, subject to individual service and contribution hurdles approved by the Company. Any Options
that do not vest will immediately lapse. No more than 40% of the options can be exercised each year for the first two years after vesting,
and any remaining options can be exercised in the final year of the exercise period. All options must be exercised prior to the expiry date.
Amount recognised during the reporting period: Expense $1.0 million (31 December 2015: Expense $0.2 million).
Options – 2015 Long-Term Incentive
Date of grant
29 October 2015
Date of expiry
29 October 2020
Grant fair value
1
$4.53
Original grant
735,636
Unexercised options at 31 December 2014
-
-
Granted
735,636
-
Vested
2
-
-
Lapsed
-
Unexercised options at 31 December 2015
735,636
-
Granted
-
-
Vested
3
-
-
Lapsed
(183,405)
Unexercised options at 31 December 2016
552,231
1
The fair values were calculated at grant date using Black Scholes 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.
2
The volume weighted average share price during the reporting period to 31 December 2015 was $22.96.
3
The volume weighted average share price during the reporting period to 31 December 2016 was $31.30.
Other information
No further offers will be made under the Short-Term Incentive Plan (STI) Deferral and all legacy grants vested in early 2016.
d) Defined contribution superannuation funds
During the period, the Group recognised $127.8 million
(31 December 2015: $192.2 million) of defined contribution expenses.
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