Westjet 2013 Annual Report Download - page 89

WestJet Annual Report 2013 89
Notes to Consolidated Financial Statements
As at and for the years ended December 31, 2013 and 2012
(Stated in thousands of Canadian dollars, except percentage, ratio, share and per share amounts)
12. Share capital (continued)
(f) Share-based payment expense
The following table summarizes share-based payment expense for the Corporation’s equity-based plans and where the amounts
are presented on the consolidated statement of earnings:
2013 2012
Stock option plan
7,706

Key employee plan 3,602 
Executive share unit plan 3,225 
Total share-based payment expense 14,533 
Flight operations and navigational charges
7,580

Marketing, general and administration 6,953 
Total share-based payment expense 14,533 
(g) Deferred share units
The Corporation has a cash-settled deferred share unit (DSU) plan as an alternative form of compensation for independent
members of the Corporation’s Board of Directors. Each DSU entitles a participant to receive cash equal to the market value of
the equivalent number of shares of the Corporation. The number of DSUs granted is determined based on the closing price of
the Corporation’s common shares on the trading day immediately prior to the date of grant. Total compensation expense is
recognized at the time of grant. Fluctuations in the market value are recognized to compensation expense in the period in which
the fluctuations occur. For the year ended December 31, 2013, 23,887 (2012 – 21,162) DSUs were granted, with $1,848 (2012
– $1,080) of expense included in marketing, general and administration expense. During the years ended December 31, 2013
and 2012, the Corporation did not settle any DSUs. The carrying amount of the liability, included in trade and other payables,
relating to the cash-settled DSUs at December 31, 2013 is $3,542 (2012 – $2,046). At December 31, 2013, 127,183 (2012 –
103,296) DSUs are vested and outstanding. DSUs are redeemable upon the Director’s retirement from the Board.
(h) Employee share purchase plan
The Corporation has an employee share purchase plan (ESPP), whereby the Corporation matches the contributions made by
employees. Under the terms of the ESPP, employees may, dependent on their employment agreement, contribute up to a
maximum of 10% or 20% of their gross salary to acquire voting shares of the Corporation at the current fair market value. The
contributions are matched by the Corporation and are required to be held within the ESPP for a period of one year. Employees
may offer to sell ESPP shares, which have not been held for at least one year, to the Corporation, at a purchase price equal to
50% of the weighted average trading price of the Corporation’s voting shares for the five trading days immediately preceding
the employee’s notice to the Corporation, to a maximum of four times per year.
Under the terms of the ESPP, the Corporation acquires voting shares on behalf of employees through open market purchases.
The Corporation’s share of the contributions in 2013 amounted to $73,010 (2012 – $65,439) and is recorded as compensation
expense within the related business unit (refer to note 4).
13. Dividends
During the year ended December 31, 2013, the Corporation declared quarterly cash dividends of $0.10 per share on its common
voting shares and variable voting shares. For the year ended December 31, 2013, the Corporation paid dividends totaling
$52,188 (2012 – $37,549).
85 9 6
7 0 3)
4 1 73
46 0 6
22 0 2
 5 5)
3 1 12
5 0 5
0 6 84
s
47 4 7)
2 8 )
60 1 )
47 4 7)
2) 6) 6)
0) 1) 9)
5) 7 )
2 8 )
) 3 )