McPHERSON’S LIMITED

 ANNUAL REPORT 2015  



  

77

(B) EMPLOYEE OPTION PLAN

Previously long-term incentives were provided to executives via the McPherson’s Limited Employee Option Plan.  Under this plan, executives were 

granted options which would only vest if certain performance conditions (relating to total shareholder return) were met and the employees were 

still employed by the Group at the end of the vesting period.  Participation in the plan is at the discretion of the Nomination and Remuneration 

Committee and no individual has a contractual right to receive any guaranteed benefits. The options carry no dividend or voting rights.

Options Granted - 2010 Financial Year

On 9 July 2009 the Company announced that it proposed to grant 1.5 million options over ordinary shares in the Company to the Managing Director 

designate, Mr Paul Maguire, under the McPherson’s Limited Share / Option Purchase Plan. The grant was subject to the approval of shareholders 

which was given at the McPherson’s Limited Annual General Meeting on 13 November 2009 following Mr Maguire’s appointment as Managing 

Director on 1 November 2009.  The options formed part of Mr Maguire’s remuneration arrangements.  The options were granted and were 

exercisable in four equal tranches of 375,000.  Details of the options, all of which were cancelled during the year, are set out below:

NUMBER 

GRANTED

GRANT 

 DATE

1

EXPIRY DATE

VALUE PER

OPTION AT 

GRANT DATE

1

AMOUNT

PAID AT

GRANT DATE

TERMS AND CONDITIONS OF GRANT

EXERCISE 

PRICE

DATE EXERCISABLE

SHARE PRICE

CRITERIA

SHAREHOLDER 

RETURN CRITERIA

FROM 

TO

375,000

06-Jul-09

06-Jul-14

$1.16

$3,750

$1.64

06-Jul-11

06-Jul-14

Note 2

Note 3

375,000

06-Jul-09

06-Jan-15

$1.10

$3,750

$1.75

06-Jan-12

06-Jan-15

Note 2

Note 3

Notes:
1. The issue of the options was subject to shareholder approval.  The options were initially granted on 6 July 2009 and were formally approved at a General Meeting of shareholders on 13 

November 2009. The grant date for option valuation purposes is the shareholder approval date of 13 November 2009.

2. The share price must exceed the relevant exercise price for a continuous period of 40 trading days.
3. Total shareholder return must exceed 15% per annum for the period from the grant date to the relevant exercise date.

Set out below is a summary of movements in options granted under the plan:

2015

2014

AVERAGE EXERCISE 

PRICE PER SHARE 

OPTION

NUMBER OF 

OPTIONS

AVERAGE EXERCISE 

PRICE PER SHARE 

OPTIONNUMBER OF OPTIONS

As at 1 July

$1.70

750,000

$2.67

1,525,000

Cancelled during the year

$1.70

(750,000)

$3.61

(775,000)

As at 30 June

-

-

$1.70

750,000

Vested and exercisable

-

-

-

-

Expenses / (income) arising from share-based payment transactions

Total expenses / (income) arising from share-based payment transactions recognised during the period as part of employee benefit expense were 

as follows:

2015

$’000

2014

$’000

Performance rights issued under the employee performance rights plan

(36)

128

NOTE 27.   CONTRACTUAL COMMITMENTS FOR EXPENDITURE

(A) CAPITAL COMMITMENTS

Aggregate capital expenditure contracted for at balance date, but not provided for in the accounts, due:

Not later than one year

246

20