Seagate 2015 Annual Report Download - page 104
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
performancesharebonusawardsorperformanceshareawards(collectively,"Full-ValueShareAwards")willgenerallybecountedagainsttheShareReserveas
oneandfive-tenthssharesforeveryonesharegranted.AsofJuly1,2016,therewereapproximately1millionordinarysharesavailableforissuanceunderthe
DHEIP.
SeagateTechnologyplcEmployeeStockPurchasePlan(the"ESPP").Thereare50.0millionordinarysharesauthorizedtobeissuedundertheESPP.Inno
eventshallthetotalnumberofsharesissuedundertheESPPexceed75.0millionordinaryshares.TheESPPconsistsofasix-monthofferingperiodwitha
maximumissuanceof1.5millionordinarysharesperofferingperiod.TheESPPpermitseligibleemployeestopurchaseordinarysharesthroughpayrolldeductions
generallyat85%ofthefairmarketvalueoftheordinaryshares.AsofJuly1,2016therewereapproximately6.8millionordinarysharesavailableforissuance
undertheESPP.
EquityAwards
Full-ValueShareAwards(e.g.restrictedshareunits)generallyvestoveraperiodofthreetofouryears,withcliffvestingofaportionofeachawardoccurring
annually.Optionsgenerallyvestasfollows:25%oftheoptionswillvestonthefirstanniversaryofthevestingcommencementdateandtheremaining75%will
vestratablyeachmonththereafteroverthenext36months.OptionsgrantedundertheEIPandSCPhaveanexercisepriceequaltotheclosingpriceofthe
Company'sordinarysharesondateofgrant.
TheCompanygrantedperformanceawardstoitsseniorexecutiveofficersundertheSCPandtheEIPwherevestingissubjecttoboththecontinued
employmentoftheparticipantbytheCompanyandtheachievementofcertainperformancegoalsestablishedbytheCompensationCommitteeoftheCompany's
BoardofDirectors,includingmarketbasedperformancegoals.AsingleawardrepresentstherighttoreceiveasingleordinaryshareoftheCompany.Duringfiscal
years2016,2015and2014,theCompanygranted0.4million,0.3millionand0.4millionperformanceawards,respectively,whereperformanceismeasuredbased
onathree-yearaveragereturnoninvestedcapital("ROIC")goalandarelativetotalshareholderreturn("TSR")goal,whichisbasedontheCompany'sordinary
sharesmeasuredagainstabenchmarkTSRofapeergroupoverthesamethree-yearperiod(the"TSR/ROIC"awards).Theseawardsvestaftertheendofthe
performanceperiodofthreeyearsfromthegrantdate.ApercentageoftheseunitsmayvestonlyifatleasttheminimumROICgoalismetregardlessofwhether
theTSRgoalismet.Thenumberofstockunitstovestwillrangefrom0%to200%ofthetargetedunits.Inevaluatingthefairvalueoftheseunits,theCompany
usedaMonteCarlosimulationonthegrantdate,takingthemarket-basedTSRgoalintoconsideration.Compensationexpenserelatedtotheseunitsisonly
recordedinaperiodifitisprobablethattheROICgoalwillbemet,anditistoberecordedattheexpectedlevelofachievement.
TheCompanyalsogranted0.2million,0.4millionand0.3millionperformanceawardsduringfiscalyears2016,2015and2014respectively,toitssenior
executiveofficerswhicharesubjecttoaperformancegoalrelatedtotheCompany'sadjustedearningspershare(the"AEPS"awards).Theseawardshavea
maximumseven-yearvestingperiod,with25%annualvestingstartingonthefirstanniversaryofthegrantdate.Iftheperformancegoalisnotachieved,vestingis
delayedtoafollowingyearinwhichtheAEPSgoalisachieved.Anyunvestedawardsfromprioryearsmayvestcumulativelyinafutureyearwithintheseven-
yearvestingperiodiftheannualAEPSgoalisachievedduringasubsequentyear.IftheAEPSgoalhasnotbeenmetbytheendofthesevenyearperiod,any
unvestedshareswillbeforfeited.
Duringfiscalyear2016and2015,theCompanydidnotgrantanyperformance-basedoptionsandperformancebasedrestrictedshareunitstoitsCEO.
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