65 / 248
63
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
•
•
60% financial (50% for growth in core headline
earnings per share and 10% based on
shareholder returns).
•
•
The 50% for growth in core headline earnings
per share will be based on the following
achievements:
– If growth is 5% above CPI compounded
annually over three years, then 20% of the
50% will vest.
– If growth is 10% above CPI compounded
annually over three years, then an
additional 50% (i.e. a total of 70%) of the
50% will vest.
– If growth is 25% above CPI compounded
annually over three years, then a further
30% (i.e. a total of 100%) of the 50%
will vest.
The measurement period is from 1 June 2015 to
31 May 2018.
•
•
The 10% for shareholder return will be based on
a 10% compounded growth in the share price
over the three-year vesting period, measured with
reference to the weighted average price per share
during the month of the commencement of the
allocation plus dividends over the three-year
period against the weighted average share price
for the month during which the vesting takes
place.
EXECUTIVE DIRECTORS’
SERVICE CONTRACTS
The three-year service contracts of the Executive
Directors expire as follows:
•
•
Messrs BM Levy and MS Levy, Joint CEOs –
14 November 2016,
•
•
Mr MV Pamensky, COO – 1 August 2017,
•
•
Mr DA Suntup, FD – 14 November 2017.
Each contract includes a restraint of trade
undertaking applicable for a period of 12 months
from the date from which the executive leaves the
employment from the Company on his own accord.
The restraint of trade is not enforceable in the event
that the employment contract is not renewed by the
Company, or if the executive’s employment is
illegitimately terminated by the Company.
•
•
60% financial (50% for growth in core headline
earnings per share and 10% based on
shareholder returns).
•
•
The 50% for growth in core headline earnings
per share was based on the following
achievements:
– If growth is 5% above CPI compounded
annually over three years, then 20% of the
50% would vest.
– If growth is 10% above CPI compounded
annually over three years, then an
additional 50% (i.e. a total of 70%) of the
50% would vest.
– If growth is 25% above CPI compounded
annually over three years, then a further
30% (i.e. a total of 100%) of the 50%
would vest.
The measurement period was from
1 June 2012 to 31 May 2015.
•
•
The 10% for shareholder return was based on a
10% compounded growth in the share price over
the three-year vesting period, measured with
reference to the weighted average price per share
during the month of the commencement of the
allocation plus dividends over the three-year
period against the weighted average share
price for the month during which the vesting
takes place.
Vesting of the 2012 share scheme allocations fell
due on 31 August 2015. Although the cumulative
growth in core HEPS over the three-year period
resulted in 70% of the 50% of this portion of the
performance criteria qualifying for vesting, the
Board exercised its discretion and approved that
100% of the 50% element of the financial criteria
will vest.
The criteria for a minimum return to shareholders of
compounded growth of 10% per annum over the
three-year period were achieved.
The vesting criteria for the forfeitable shares
allocated in September 2015 are as follows:
•
•
40% for retention (three years from date of
award); and
REMUNERATION REPORT
CONTINUED