McPHERSON’S LIMITED
ANNUAL REPORT 2015
77
(B) EMPLOYEE OPTION PLAN
Previously long-term incentives were provided to executives via the McPherson’s Limited Employee Option Plan. Under this plan, executives were
granted options which would only vest if certain performance conditions (relating to total shareholder return) were met and the employees were
still employed by the Group at the end of the vesting period. Participation in the plan is at the discretion of the Nomination and Remuneration
Committee and no individual has a contractual right to receive any guaranteed benefits. The options carry no dividend or voting rights.
Options Granted - 2010 Financial Year
On 9 July 2009 the Company announced that it proposed to grant 1.5 million options over ordinary shares in the Company to the Managing Director
designate, Mr Paul Maguire, under the McPherson’s Limited Share / Option Purchase Plan. The grant was subject to the approval of shareholders
which was given at the McPherson’s Limited Annual General Meeting on 13 November 2009 following Mr Maguire’s appointment as Managing
Director on 1 November 2009. The options formed part of Mr Maguire’s remuneration arrangements. The options were granted and were
exercisable in four equal tranches of 375,000. Details of the options, all of which were cancelled during the year, are set out below:
NUMBER
GRANTED
GRANT
DATE
1
EXPIRY DATE
VALUE PER
OPTION AT
GRANT DATE
1
AMOUNT
PAID AT
GRANT DATE
TERMS AND CONDITIONS OF GRANT
EXERCISE
PRICE
DATE EXERCISABLE
SHARE PRICE
CRITERIA
SHAREHOLDER
RETURN CRITERIA
FROM
TO
375,000
06-Jul-09
06-Jul-14
$1.16
$3,750
$1.64
06-Jul-11
06-Jul-14
Note 2
Note 3
375,000
06-Jul-09
06-Jan-15
$1.10
$3,750
$1.75
06-Jan-12
06-Jan-15
Note 2
Note 3
Notes:
1. The issue of the options was subject to shareholder approval. The options were initially granted on 6 July 2009 and were formally approved at a General Meeting of shareholders on 13
November 2009. The grant date for option valuation purposes is the shareholder approval date of 13 November 2009.
2. The share price must exceed the relevant exercise price for a continuous period of 40 trading days.
3. Total shareholder return must exceed 15% per annum for the period from the grant date to the relevant exercise date.
Set out below is a summary of movements in options granted under the plan:
2015
2014
AVERAGE EXERCISE
PRICE PER SHARE
OPTION
NUMBER OF
OPTIONS
AVERAGE EXERCISE
PRICE PER SHARE
OPTIONNUMBER OF OPTIONS
As at 1 July
$1.70
750,000
$2.67
1,525,000
Cancelled during the year
$1.70
(750,000)
$3.61
(775,000)
As at 30 June
-
-
$1.70
750,000
Vested and exercisable
-
-
-
-
Expenses / (income) arising from share-based payment transactions
Total expenses / (income) arising from share-based payment transactions recognised during the period as part of employee benefit expense were
as follows:
2015
$’000
2014
$’000
Performance rights issued under the employee performance rights plan
(36)
128
NOTE 27. CONTRACTUAL COMMITMENTS FOR EXPENDITURE
(A) CAPITAL COMMITMENTS
Aggregate capital expenditure contracted for at balance date, but not provided for in the accounts, due:
Not later than one year
246
20