Page 41 - Icon Energy 2014 Annual Report

REMUNERATION REPORT - AUDITED
Allotment of STI and LTI Performance Rights to Executive Directors is subject to approval by shareholders. The 2013-14
STI and LTI allotments were approved by shareholders at the 2013 Annual General Meeting in accordance with ASX
Listing Rule 10.14.
Performance conditions based on growth in Icon’s share price were chosen
because share price growth is directly linked to growth in shareholder value. The
performance conditions ensure that senior executives will only benefit if, and to the
extent that, there is a significant sustained increase in the Company’s share price
over a three year period. No LTI benefits will vest unless Icon’s share price growth
performs well when benchmarked against other energy companies and the share
price achieves a minimum threshold level (45 cents)
Performance Rights issued under the 2013-14 LTI were granted with effect from 4 March
2014. Performance Rights were granted at no cost to the participants.The Performance
Period is between 1 July 2013 to 30 June 2016.
Following the conclusion of the Performance Period (30 June 2016) the Board will make
an assessment as to the extent to which the LTI performance conditions have been
met and the number of Performance Rights that will vest based on meeting the above
conditions and the following table:
LTI Performance Rights lapse if vesting does not occur on testing of the performance
conditions. Where Performance Rights vest they may be exercised at any time up to
the LTI Last Exercise Date being 30 June 2018. Any Rights not exercised by the LTI Last
Exercise Date will lapse on that date.
The Expiry Date for 2013 LTI Performance Rights is 30 June 2018.
When an executive exercises a Performance Right following vesting they will be
issued with one ordinary share for every Performance Right exercised. No exercise
price is paid on vesting as Performance Rights are issued at no cost.
Why were these
performance
conditions
chosen?
Performance Period,
Grant Date & Issue
Price
How is performance
assessed?
LTI Performance
Right Expiry/Lapse
What happens on
exercise of rights?
Movement in Share Price as
Relative Percentile Ranking
Against Comparator Group
Below 40th percentile
40th percentile
Between 40th and 75th percentile
75th percentile or above
Percentage of
performance
rights to vest
0%
40%
Pro-rata
100%
ABN 61 058 454 569 ICON ENERGY LIMITED 2014 Annual Report 41