Air Canada 2013 Annual Report Download - page 128

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2013 Air Canada Annual Report
128
Refer to Note 17 for a description of derivative instruments used by the Corporation to mitigate the cash flow exposure to the
PSUs granted.
Employee Recognition Award
In 2011, Air Canada’s Board of Directors approved a special one-time Employee Recognition Award in the form of Air Canada
shares granted to all eligible unionized and certain non-unionized employees worldwide, where permitted. Under the award,
eligible employees were granted an aggregate of approximately 3.3 million shares with a grant date fair value of $11. Half of
these shares vested immediately upon issuance and the other half vest at the end of three years. Pursuant to the award, the
Corporation purchased approximately 3.3 million shares for $11, of which half were distributed to the eligible employees and
the other half are held in trust over the vesting period. The shares held in trust were recorded at cost of $6 and are reported
net against Share capital. Compensation expense for these shares will be recognized over the vesting period. The
compensation expense recorded in 2013 was $2 (2012 – $2). Refer to Note 13 for the number of remaining shares held in
trust as at period end which will vest in the first quarter of 2014.
Employee Share Purchase Plan
Eligible employees can participate in the employee share purchase plan under which employees can invest up to 6% of their
base salary for the purchase of shares on the secondary market. Air Canada will match 33.3% of the investments made by the
employee during the first year of participation in the program, with a 50% match after 12 months of continuous participation
in the program. During 2013, the Corporation recorded compensation expense of $1 (2012 – less than $1).