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2012 Annual Report
For the year ended June 2012
Long Term Incentives (“LTI”)
During FY2012 no executives were eligible to participate in the AHG Performance Rights Plan as the Board
has decided to re-examine the LTI plan in 2012 prior to further grants being made. Refer to note 30.
The FY2009 LTI grant for the MD will vest 100% on 30 September 2012 based on achievement of
performance criteria set in 2009 and measured across FY2010, FY2011 and FY2012. Associated rights,
which have vested over that three year performance period, will be issued during the year ended 30
June 2013. The value of the LTI over the three year period is $2.0 million which has been fully expensed
over the three-year period from 30 June 2010 to 2012 and will be settled by 843,882 shares at $2.37 per
share (VWAP of shares at LTI issue date of 1 July 2009). The FY2010 LTI grant for the ED Planning &
Strategy will vest on 30 September 2013 and the amount to be paid will be dependent on achievement of
performance criteria. $100,000 of the maximum $200,000 has been expensed over the two-year period
from 30 June 2011 to 2012.
The FY2009 LTI grant for the MD will vest based on the following performance criteria:
• Number of shares allocated will be based on cumulative Total Shareholder Return (TSR) for the period
1 July 2009 to 30 June 2012
• Cumulative TSR will be compared to a reference group of the ASX 300 excluding resource companies
and financial institutions
• At the 50th percentile the MD will receive 421,941 shares
• For every 1% above the 50th percentile the MD will receive an additional 16,878 shares, to a maximum
of 843,882 shares (75th percentile)
• AHG’s actual TSR ranking for the period 1 July 2009 to 30 June 2012 was at the 94th percentile
Details of equity plans currently in operation are as follows:
AHG Tax Exempt Share Plan
AHG has established a $1,000 tax exempt share plan that provides eligible employees (those with
more than 3 years service) with an opportunity to share in the growth in value of AHG shares. Under
the tax exempt share plan, eligible employees have the opportunity to purchase $1,000 worth of
shares in the Company by way of salary sacrifice. The tax exempt share plan seeks to encourage
participating employees to improve the performance of the Group and its return to shareholders through
equity participation.
The number of shares purchased by eligible employees is based on the 5 day volume weighted average
share price.
AHG Executive Share Plan
The AHG Executive Share Plan has been established which would allow directors and certain senior
executives the opportunity to salary sacrifice their fees, salary, commission or bonus to purchase AHG
shares up to a maximum of $50,000 at a value to be determined.
Management of the Plans
The equity-based Plans outlined above are administered by the Board. The Company has appointed
CPU Share Plans Pty Ltd to act as trustee of the Plan (“Trustee”). The Trustee will, at the direction of the
Board (or Board committee), acquire the Company’s shares either by way of on-market acquisition or by
subscription, and the shares will be held on trust for participants under the Plans.
Should there be any future issues, it is the intention of the Board that the Trustee (or another appointed
to act as trustee of the Plan) will either purchase shares on-market or subscribe for new shares using
funds provided by the Company and hold those shares on trust for participants under the Plan. Once
a participant satisfies their performance criteria, the Rights issued to that participant vest, and the
participant may then direct the Trustee to transfer to him or her that number of shares equal to the
number of the participant’s Rights vesting.
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