Air New Zealand 2014 Annual Report Download - page 41

AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2014 39
24. ISSUED CAPITAL (CONTINUED)
SHARE ISSUE DETAILS AND RIGHTS
Ordinary Shares
At 30 June 2014, there were 1,114,424,283 fully paid Ordinary Shares on issue (30 June 2013: 1,103,924,560). The amount of treasury
stock held as at 30 June 2014 is 2,515,463 shares (30 June 2013: 8,767,795 shares).
On 20 September 2013, 877,055 Ordinary Shares were issued to executives under the Mandatory Shareholding section of the Long
Term Incentive Plan (21 September 2012: 370,732 Ordinary Shares). The issue price of $1.043 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 (21 September 2012: $0.84 per Ordinary Share).
The dividend reinvestment plan is currently suspended.
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 Company is
currently undertaking a stock settled share appreciation rights scheme whereby shares are issued equating to the delta between the
market price and the exercise price.
The total expense recognised in the year ended 30 June 2014 in respect of equity-settled share-based payment transactions was
$4 million (30 June 2013: $5 million). The total outstanding options at 30 June 2014 is 74,389,248 (30 June 2013: 97,413,817).
GROUP AND COMPANY
2014
LONG TERM
INCENTIVE PLAN
2014
CEO
OPTION PLAN*
2014
CFO
OPTION PLAN
2013
LONG TERM
INCENTIVE PLAN
2013
CEO
OPTION PLAN*
2013
CFO
OPTION PLAN
Number of options outstanding
Outstanding at beginning of the year
Granted during the year
Exercised during the year
Lapsed during the year
66,837,243
16,473,959
(18,101,585)
(1,158,272)
28,177,436
-
(20,238,671)
-
2,399,138
-
-
-
60,679,081
25,610,275
(16,412,875)
(3,039,238)
19,569,917
8,607,519
-
-
-
2,399,138
-
-
Outstanding at the end of the year** 64,051,345 7,938,765 2,399,138 66,837,243 28,177,436 2,399,138
Number of options exercisable as
at end of the year
Weighted average exercise price for
those options exercisable as at the
end of the year ($)
Weighted average exercise price for those
options exercised during the year ($)
Weighted average share price at the
date of exercise ($)
Weighted average remaining period
to contractual maturity (years)
5,517,001
1.42
1.18
1.90
3.0
7,938,765
1.18
1.07
1.94
0.2
-
-
-
-
3.3
12,134,225
1.06
0.98
1.31
3.0
28,177,436
1.10
-
-
1.2
-
-
-
-
4.3
* The CEO Option Plan was part of the former Chief Executive Officer’s total remuneration.
** The People Remuneration and Diversity 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.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2014