MIRVAC gRoup AnnuAl RepoRt 2012 - Mirvac - Mirvac Group

DIReCtoRs’ RepoRt
4 ReMuneRAtion coMponents AnD outcoMes foR the elt / continueD
vesting/delivery — The performance rights offered under the scheme can only be exercised if and when the performance
conditions are achieved over a three year period. If the performance rights vest, entitlements will be
satisfied by, at the Board’s discretion, either an allotment of new securities to participants or by the
purchase of existing securities on-market that are then transferred to the participant.
— At the end of the three year performance period, all performance rights that vest are automatically
converted to Mirvac securities. however, if the performance rights do not vest at the end of the three
year performance period, they will lapse. There are no further tests of the performance conditions.
Directors have also indicated that there is no intention to retest the performance conditions
in the future.
termination/
forfeiture
16 mirvac group annual report 2012
— If an employee resigns or is dismissed, all their unvested rights are forfeited. If an employee leaves due
to retirement, redundancy, total and permanent disablement or death, the hRC determines the number
of rights which will lapse or are retained, subject to both the original performance period and hurdles.
Consistent with the recent amendments to the Corporations Act 2001, participants are prohibited from
hedging their unvested performance rights or options.
— If a change of control event occurs, the hRC determines the number of performance rights that vest,
if any, taking into account the performance from the date of grant to the event.
Relative tsR performance hurdle
For the grant made during the year ended 30 June 2012, the vesting outcome at the end of the performance period will depend
on Mirvac’s TSR performance relative to the constituents of the comparison group. To ensure that performance is measured
objectively, the hRC receives the relative TSR data from an independent external consultant. The hRC then determines the
number of performance rights that will vest, if any, by applying the TSR data to the vesting schedule.
For the grant made during the year ended 30 June 2012, the vesting outcome at the end of the three year performance period
for the portion of the grant for which TSR is the performance measure will be based on the following schedule:
Percentage of
Performance level Relative TSR (percentile) TSR-tested rights to vest