Telstra 2012 Annual Report Download - page 210

Telstra Corporation Limited and controlled entities
180
Notes to the Financial Statements (continued)
Telstra Growthshare Trust (continued)
(b) Long term incentive (LTI) plans (continued)
(iii) Performance hurdles (continued)
Return on Investment (ROI) options (fiscal 2008)
The ROI hurdle has been measured over the following three
performance periods:
• First performance period - 1 July 2008 to 30 June 2009;
• Second performance period - 1 July 2009 to 30 June 2010; and
• Third performance period - 1 July 2010 to 30 June 2011.
For each of the performance periods, the number of options that will
vest is calculated as follows:
• if the threshold target is achieved in the applicable performance
period, then 50% of the allocation of options will vest;
• if the result achieved is between the threshold and stretch
targets, then the number of vested options is scaled
proportionately between 50% and 100%; and
• if the stretch target is achieved, then 100% of the options will
vest.
The maximum number of options that can vest in a performance
period is limited to the initial number allocated, less any options that
may have lapsed.
Performance rights
Details of the relevant performance hurdles in relation to
performance rights are set out below:
Employee Share Rights Plan (ESRP) performance rights (fiscal
2011 and fiscal 2010)
As part of the employee share rights plan, certain eligible
employees were provided performance rights that vest upon
completing certain employment requirements. If an eligible
employee continues to be employed by an entity that forms part of
the Telstra Group three years after the effective allocation date of
the performance rights (and in certain other circumstances), the
performance rights will vest. These performance rights are not
subject to any additional performance hurdles.
27. Employee share plans (continued)