annual report 2011

IOOF | annual report 2011
Each of the relevant details of the options series is as follows:
Series Grant date Exercise period Vesting date Performance hurdles
2009-05 30-Apr-09 Apr 09 - Jan 11 30-Apr-09 Service (1)
2009-06 30-Apr-09 Apr 09 - Mar 11
2009-08 30-Apr-09 Apr 09 - Jun 13
2009-11 30-Apr-09 Jun 09 - Jul 11
2009-09 30-Apr-09 Apr 09 - Nov 12
2009-16 27-Nov-09 Nov 12 - Nov 15
40% 30-Apr-09 Service (1)
30% 30-Sep-09 Service (2)
30% 30-Sep-10 Service (2)
70% 30-Apr-09 Service (1)
30% 30-Sep-10 Service (2)
50% 30-Jun-09
50% 30-Jun-10
33% 30-Apr-09
33% 22-Nov-09
33% 22-Nov-10
50% 27-Nov-12
25% 27-Nov-13
25% 27-Nov-14
Service (2)
Service (3)
EPS & ROE (4)
2010-03 4-May-10 May 13 - May 16 4-May-13 Service
2010-04 29-Jul-10 Jul 13 - Jun 15 1-Jul-13 Service
2010-05 23-Nov-10 Nov 13 - Nov 16
2008-04 1-Jan-08
2008-05 1-Jul-08
2009-21 1-Apr-09
50% 23-Nov-13
25% 23-Nov-14
25% 23-Nov-15
EPS & ROE
Apr 09 - 31 Dec 10 30-Apr-09 Accelerated vesting (5)
(1) Prior to the acquisition of AWM, these options had fully vested. As disclosed in the Scheme Booklet for the acquisition, options over AWM shares held by AWM
employees have been converted into IOOF options of economic equivalence.
(2) As disclosed in the Scheme Booklet for the acquisition of AWM, options over AWM shares held by AWM employees have been converted into IOOF options of
economic equivalence. The remaining options vest progressively over a service period.
(3) Prior to the acquisition of AWM, the performance hurdle for vesting of AWM options was 50% on the Group’s achievement of the approved budget for that financial
year and the remaining 50% if the Company’s Total Shareholder Return (TSR) is positive, and in the top quartile relative to the TSR of a comparator group of ASX listed
companies selected by the Board. As a consequence of the acquisition, in accordance with the terms of the Share Option Plan, the Remuneration and Nominations
Committee exercised its discretion to waive the performance hurdle in respect of unvested options as it is now impractical to measure performance against the hurdle
on the basis established prior to the acquisition. The vesting of the options is conditional on continuing employment with the Group.
(4) Shareholders approved that this element of the plan will not activate unless a minimum average ROE of 5.5% per annum over the performance period has been
achieved. The performance hurdle for vesting of the options is an EPS target of compound growth of 10% per annum in each financial year 2010-11, 2011-12 and 2012-
13 from a base point of 34 cents per share, being the final actual EPS figure for financial year 2009/10.
(5) Prior to the acquisition of AWM the performance hurdle for vesting of the IOOF options was 40% on the Group’s achievement of compounding earnings per share
in excess of 10% over the vesting period, 30% on the Company’s achievement of TSR above a pre-determined benchmark and the remaining 30% on continued
employment with the Group. As a consequence of the acquisition, in accordance with the terms of the Share Option Plan, the Remuneration and Nominations
Committee exercised its discretion to waive the performance hurdles in respect of unvested options as it is now impractical to measure performance against the
hurdle on the basis established prior to the acquisition. As a result, options were deemed to have vested effective 30 April 2009.
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