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Washington H. Soul Pattinson and Company Limited
Annual Report 2016
36
Directors' Report
– Remuneration Report
LTIs
Executive KMP participate, at the NHRC’s discretion, in the LTI plan comprising annual grants of performance
rights as follows.
Structure of LTIs for the KMP of the Consolidated Entity – New Hope executives
Feature
Description
Maximum
Opportunity/
Allocation
31% of New Hope Managing Director’s fixed remuneration
31% of New Hope Chief Operating Officer’s fixed remuneration
25% of New Hope Chief Financial Officer’s fixed remuneration
Maximum allowable LTIs are provided for in senior executive employment contracts. At the end of each
period the NHRC awards executives a percentage of their maximum allowable LTIs having regard to the
performance of the executive and New Hope during the period.
The value of the executive’s LTIs is converted into Performance Rights by reference to the five day
volume weighted average share price of New Hope over the five days immediately preceding issue.
KPIs
Objective
Weighting
Shareholder Value
50%
Project Development and Merger and Acquisition Activities
25%
Strategic Plan (including Succession Planning and Stakeholder Management)
25%
Performance
and service
conditions
Performance Rights are issued subject to performance and service conditions. The service condition
requires that the executive remain an employee of New Hope for the duration of the three year vesting
period. The performance conditions attaching to the rights are measured over three years. The NHRC
will determine the percentage of rights that will vest based on the performance of the executive and
New Hope during the three year period.
LTIs are designed to motivate and reward senior executives to achieve the strategic goals set by New
Hope, align shareholder and executive objectives and to retain the services of senior executives.
Shareholder
value rights
TSR of New Hope expressed as a percentage of the ASX 200 accumulation index (Index) over a three
year period.
TSR as a % of the Index
Rights to vest
< 100%
Nil
100% to < 105%
50%
105% to < 110%
60%
110% to <115%
70%
115 to < 120%
80%
120 to < 125%
90%
> 125%
100%
Payable by
participants
Nil
No amounts are payable by the participants upon the granting or the
exercising of the rights.
Discretion
The NHRC has discretion to select alternative equity instruments for the award of LTIs in the event that
Performance Rights do not align to the strategic goals set by the NHRC or New Hope.
Subject to the employee satisfying the above service and performance conditions, a percentage of the
Performance Rights will vest three years after their grant date in accordance with the above table.