Air New Zealand 2011 Annual Report Download - page 45

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22. ISSUED CAPITAL (CONTINUED)
SHARE ISSUE DETAILS AND RIGHTS
Ordinary Shares
At 30 June 2011, there were 1,090,833,451 fully paid Ordinary Shares on issue (30 June 2010: 1,076,747,302).
On 17 September 2010, 456,324 Ordinary Shares were issued to executives under the Mandatory Shareholding section of the Long
Term Incentive Plan (18 September 2009: 336,299 Ordinary Shares). The issue price of $0.965 per Ordinary Share represented a
discounted price determined on the basis of an independent valuation, reflecting restrictions placed on the transfer of the shares under
the terms of the Long Term Incentive Plan Rules (18 September 2009: $0.932 per Ordinary Share).
During the year ended 30 June 2011, 6,902,848 Ordinary Shares were issued under the dividend reinvestment plan (30 June 2010:
5,863,520 Ordinary Shares). Further details are provided in Note 20.
Non New Zealand nationals are restricted from holding or having an interest in 10 percent or more of voting shares unless the prior
written consent of the Kiwi Shareholder is obtained. In addition, any person that owns or operates an airline business is restricted from
holding any shares in the Company without the Kiwi Shareholder’s prior written consent.
EQUITY-SETTLED SHARE-BASED PAYMENTS
Options over Ordinary Shares
Share options are granted to a number of senior executives on attainment of predetermined performance objectives. The outstanding
options at 30 June 2011 may convert to approximately 55.7 million Ordinary Shares (30 June 2010: 49.5 million Ordinary Shares).
The total expense recognised in the year ended 30 June 2011 in respect of equity-settled share-based transactions was $3 million
(30 June 2010: $3 million).
GROUP AND COMPANY
2011
LONG TERM
INCENTIVE
PLAN
2011
CEO
OPTION
PLAN
2010
LONG TERM
INCENTIVE
PLAN
2010
CEO
OPTION
PLAN
Number of options outstanding
Outstanding at the beginning of the year
40,722,469 8,794,045 35,815,153 4,923,077
Granted during the year
11,884,690 4,067,797 11,923,525 3,870,968
Exercised during the year
(6,726,977) - (5,304,802) -
Forfeited during the year
(2,823,829) - (1,711,407) -
Lapsed during the year
(264,906) - - -
Outstanding at end of the year*
42,791,447 12,861,842 40,722,469 8,794,045
Number of options exercisable as at the end of the year
6,243,048 - 6,558,704 -
Weighted average exercise price for those options exercisable
as at the end of the year ($)
1.07 - 0.68 -
Weighted average exercise price for those options exercised
during the year ($)
0.74 - 0.82 -
Weighted average share price at the date of exercise ($)
1.22 - 1.20 -
Weighted average remaining period to contractual maturity (years)
3.24 3.55 2.91 4.22
* The People Development and Remuneration Committee of the Board will adjust option terms, if necessary, to ensure that the impact of
share issues, share offers or share structure changes is value neutral as between participants and shareholders.
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2011