Qantas 2008 Annual Report Download - page 61

59 Qantas Annual Report 2008
Directors’ Report
for the year ended 30 June 2008
Share Entitlements
In previous years, Entitlements over unissued shares in Qantas were awarded to Executive Directors and Senior Executives under the Qantas
Long-Term Executive Incentive Plan.
During the year, 2,728,952 Entitlements were converted to 516,085 shares and a further 39,533 Entitlements were cash settled.
There were no Entitlements outstanding at 30 June 2008.
Rights
Performance Rights are awarded to select Qantas Group Executives under the Qantas Deferred Share Plan. Refer to page 65 for further details.
The following table outlines the movements in Rights during the year:
Performance Rights Plan
2008
Number
2007
Number
Rights outstanding as at 1 July 5,038,800 4,590,000
Rights granted 2,545,000 2,044,300
Rights lapsed (288,276) (279,000)
Rights vested (1,174,491) (1,316,500)
Rights outstanding as at 30 June 6,121,033 5,038,800
No Rights expired during the year. Rights will be converted to Qantas shares following the tenth anniversary of the date of the award to the
extent performance hurdles have been achieved. The Rights do not allow the holder to participate in any share issue of Qantas. No dividends
are payable on Rights. The fair value of Rights granted is calculated at the date of grant using a Monte-Carlo Valuation Methodology and/or Black
Scholes Methodology.
The following Rights were outstanding at 30 June 2008:
Number of Rights
Testing Period
Grant
Date
Value at
Grant Date
Net Vested
2008
Unvested
2008
Total
2008
Net Vested
2007
Unvested
2007
Total
2007
30 Jun 07 – 30 Jun 09118 Aug 04 $2.25 – 51,000 51,000 – 255,000 255,000
30 Jun 07 – 30 Jun 09121 Oct 04 $2.28 – 108,000 108,000 – 540,000 540,000
30 Jun 07 – 30 Jun 09113 Jan 05 $2.47 102,033 147,700 249,733 –820,500820,500
30 Jun 07 – 30 Jun 09120 Jun 05 $1.88 – 1,000 1,000 –5,0005,000
30 Jun 08 – 30 Jun 10217 Aug 05 $1.98 – 395,000 395,000 – 395,000 395,000
30 Jun 08 – 30 Jun 10222 Nov 05 $2.67 – 883,000 883,000 – 975,000 975,000
30 Jun 08 – 30 Jun 10228 Mar 06 $2.28 – 18,000 18,000 – 33,000 33,000
30 Jun 09 – 30 Jun 11322 Aug 06 $2.39 – 345,000 345,000 – 345,000 345,000
30 Jun 09 – 30 Jun 1134 Oct 06 $2.95 –1,125,300 1,125,300 –1,245,3001,245,300
30 Jun 09 – 30 Jun 11319 Oct 06 $3.17 – 400,000 400,000 – 400,000 400,000
30 Jun 09 – 30 Jun 11312 Apr 07 $4.50 –––– 25,000 25,000
30 Jun 10 – 30 Jun 12412 Dec 07 $4.42 – 905,000 905,000 –––
30 Jun 10 – 30 Jun 12431 Mar 08 $2.75 – 1,640,000 1,640,000 –––
102,033 6,019,000 6,121,033 – 5,038,800 5,038,800
While these Rights may convert to Qantas shares on the tenth anniversary of the date of award, Executives may call for the Rights to be converted to the extent performance hurdles have been
achieved upon testing, which commenced 30 June 20 07.
While these Rights may convert to Qantas shares on the tenth anniversary of the date of award, Executives may call for the Rights to be converted to the extent performance hurdles have been
achieved upon testing, which commenced 30 June 20 08.
While these Rights may convert to Qantas shares on the tenth anniversary of the date of award, Executives may call for the Rights to be converted to the extent performance hurdles have been
achieved upon testing, which is to commence 30 June 2009.
While these Rights may convert to Qantas shares on the tenth anniversary of the date of award, Executives may call for the Rights to be converted to the extent performance hurdles have been
achieved upon testing, which is to commence 30 June 2010.
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