Telstra 2008 Annual Report Download - page 100

97
Telstra Corporation Limited and controlled entities
Remuneration Report
Figure 10: Number of equity instruments granted and vested
(1)Options granted during fiscal 2008 relate to the annual LTI plan for fiscal 2008. Incentive Shares granted during fiscal 2008 relate
to the STI Equity plan for fiscal 2005.
(2) These Incentive Shares relate to the 2004/05 STI plan and does not include any allocation in relation to the 2007/08 STI plan.
(3)The options granted during the year relate to those options granted under Tranche 2 of the CEO’s 2007 LTI allocation. 10,344,828
options were granted to the CEO under Tranche 1 of the 2007 LTI and disclosed in fiscal 2007.
The accounting value of the CEO and senior executives’ options, restricted shares and options that were granted, exercised and
lapsed in fiscal 2007, are set out in Figure 11. The accounting value is included to address our reporting obligations only. Where
these instruments expire, there is no benefit at all to the executive, and therefore no transfer of any equity or equity-related
instrument. All instruments that have expired were tested against the external performance measure of Total Shareholder Return
(TSR).
Figure 11: Value of options granted, exercised and expired/forfeited in fiscal 2008
Each equity instrument may be exercised for one Telstra Share, subject to achievement of the relevant performance hurdles, by
paying the prescribed exercise price.
GMD
Incentive
shares
Options Deferred
Incentive
Shares
Incentive
shares (2)
Solomon Trujillo Granted during period - 5,172,414(3) 651,608 -
Vested during the period----
Bruce Akhurst Granted during period (1) 30,116 1,811,594 - 5,683
Vested during the period 30,116 - - 43,291
Kate McKenzie Granted during period (1) 38,883 608,696 - 1,306
Vested during the period 38,883 - - 6,766
David Moffatt Granted during period (1) 92,742 1,905,780 - 2,642
Vested during the period 92,742 - - 20,530
Deena Shiff Granted during period (1) 65,511 1,376,812 - 1,572
Vested during the period 65,511 - - 24,404
John Stanhope Granted during period (1) 82,469 1,333,320 - 1,279
Vested during the period 82,469 - - 19,856
David Thodey Granted during period (1) 79,060 1,681,160 - 1,097
Vested during the period 79,060 - 17,049
Gregory Winn Granted during period (1) ----
Vested during the period----
Granted during
period
($)(1) (2)
(1) This amount represents an accounting estimate of the potential value executives may derive from Options over the vesting period.
However, the executives will only derive value from the Options granted where the TSR gateway and the applicable performance
measures are satisfied. Accordingly the minimum potential value of the Options granted is zero or may be greater than the above
depending on the share price at the time of exercise.
(2) The fair value of the options granted in fiscal 2008 is $0.58 for the ROI options and $0.50 for the TSR options. The fair values reflect
the valuation approach required by the applicable accounting standard including a Monte Carlo simulation option pricing model as
explained in note 27 to the financial statements. The fair value of options for the CEO is $0.17.
Exercised
($)
Expired/ forfeited
($)
Aggregate of options granted,
exercised and lapsed
($)
Solomon Trujillo 879,310 - - 879,310
Bruce Akhurst 978,261 - - 978,261
Kate McKenzie 328,696 - - 328,696
David Moffatt 1,029,121 - - 1,029,131
Deena Shiff 743,478 - - 743,478
John Stanhope 719,993 - - 719,993
David Thodey 907,826 - - 907,826
Gregory Winn -- - -