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Notes to the Financial Statements (continued)
As at 30 June 2015
Air New Zealand Annual Financial Results 2015 25
18. Share Capital (continued)
PERFORMANCE
SHARE
RIGHTS
2015
LONG TERM
INCENTIVE
PLAN 2015
2015
CEO
OPTION
PLAN1
2015
CFO
OPTION
PLAN
2015
LONG TERM
INCENTIVE
PLAN
2014
CEO
OPTION
PLAN1
2014
CFO
OPTION
PLAN
2014
Number outstanding
Outstanding at beginning of the year
Granted during the year
Exercised during the year
Lapsed during the year
-
5,036,722
-
-
64,051,345
-
(15,983,643)
-
7,938,765
-
(7,938,765)
-
2,399,138
-
-
-
66,837,243
16,473,959
(18,101,585)
(1,158,272)
28,177,436
-
(20,238,671)
-
2,399,138
-
-
-
Outstanding at the end of the year* 5,036,722 48,067,702 - 2,399,138 64,051,345 7,938,765 2,399,138
Exercisable as at end of the year
Weighted average exercise price:
- exercisable as at the end of the year ($)
- exercised during the year ($)
Weighted average:
- Share price at the date of exercise ($)
- Remaining period to contractual
maturity (years)
Fair value of options and rights
granted in year ($M)
Unamortised grant date fair value ($M)
-
-
-
-
2.7
5.2
3.8
9,033,205
1.57
1.51
2.49
2.4
-
1.7
-
-
1.18
2.19
-
-
-
1,142,857
1.34
-
-
2.3
-
0.1
5,517,001
1.42
1.18
1.90
3.0
3.3
4.5
7,938,765
1.18
1.07
1.94
0.2
-
-
-
-
-
-
3.3
-
0.2
* The People Remuneration and Diversity Committee of the Board will adjust share-based arrangement 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.
Key inputs and assumptions
The general principles underlying the Black Scholes pricing model have been used to value these rights and options using a Monte Carlo simulation
approach, with the exception of the 2013 CEO Option Plan1 for which a simplified approach was applied given the exercise price was fixed at issue
date. The key inputs for rights and options granted in the relevant year were as follows:
WEIGHTED
AVERAGE
SHARE PRICE
(CENTS)
EXPECTED
VOLATILITY OF
SHARE PRICE
(%)
EXPECTED
VOLATILITY OF
PERFORMANCE
BENCHMARK
INDEX
(%)
CORRELATION
OF VOLATILITY
INDICES
CONTRACTUAL
LIFE
(YEARS)
RISK FREE
RATE
(%)
EXPECTED
DIVIDEND
YIELD
(%)
Performance share rights
2015 205 26 14 0.34 3.5 4.00 5.3
1. The CEO Option Plan was part of the former Chief Executive Officer’s total remuneration.