Westjet 2015 Annual Report Download - page 88

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Notes to Consolidated Financial Statements
As at and for the years ended December 31, 2015 and 2014
(Stated in thousands of Canadian dollars, except percentage, ratio, share and per share amounts)
WestJet Annual Report 2015 | 86
11. Share capital (continued)
(e) Executive share unit plan
The Corporation has an equity-based executive share unit (ESU) plan, whereby RSUs and performance share units (PSU) may be
issued to senior executive officers. At December 31, 2015, 1,011,927 (2014 – 1,011,927) voting shares of the Corporation were
reserved for issuance under the ESU plan.
The fair market value of the RSUs and PSUs at the time of grant is equal to the weighted average trading price of the
Corporation’s voting shares for the five trading days immediately preceding the grant date.
Each RSU entitles the senior executive officers to receive payment upon vesting in the form of voting shares of the Corporation.
RSUs time vest over a period of up to three years, with compensation expense being recognized in net earnings over the service
period.
Each PSU entitles the senior executive officers to receive payment upon vesting in the form of voting shares of the Corporation.
PSUs time vest over a period of up to three years and incorporate performance criteria established at the time of grant.
Compensation expense is recognized in net earnings over the service period based on the number of units expected to vest.
The Corporation intends to settle all RSUs and PSUs with shares either through the purchase of voting shares on the open
market or the issuance of new shares from treasury; however, wholly at its own discretion, the Corporation may settle the units
in cash. For the year ended December 31, 2015, the Corporation settled 77,318 RSUs and 107,658 PSUs through the purchase
of shares on the open market and nil through the issuance from treasury (December 31, 2014 – 74,221 and 69,713 and nil,
respectively).
Changes in the number of units, with their weighted average fair value, are summarized below:
2015
2014
RSUs
PSUs
RSUs
PSUs
Number
of units
Weighted
fair value
Number
of units
Weighted
fair value
Number
of units
Weighted
fair value
Number
of units
Weighted
fair value
Units outstanding,
beginning of period
179,890
19.85
321,620
20.88
192,084
17.35
243,567
17.18
Granted
144,636
24.41
142,092
26.12
60,338
24.34
144,559
24.33
Units, in lieu of
dividends
3,332
23.65
6,032
24.28
1,689
28.17
3,207
28.54
Settled
(77,318)
15.23
(107,658)
15.61
(74,221)
17.22
(69,713)
15.44
Forfeited
(27,820)
23.28
(59,199)
23.41
-
-
-
-
Units outstanding,
end of period
222,720
24.04
302,887
24.79
179,890
19.85
321,620
20.88
(f) Share-based payment expense
The following table summarizes share-based payment expense for the Corporation’s equity-based plans:
2015
2014
Stock option plan
10,955
11,449
Key employee plan
2,700
3,039
Executive share unit plan
3,599
4,138
Total share-based payment expense
17,254
18,626