Equity Compensation Benefits (continued)
b)
Long Term Incentive Plans (continued)
(iv)
Under the TeleChoice PSP, conditional awards of shares are granted. Awards represent the right of a participant to
receive fully paid shares upon the participant achieving certain pre-determined performance targets which are set based
on corporate objectives aimed at sustaining longer-term growth. The vesting period of the awards granted under the
Plans is between one to three years. After the awards vest, the shares comprised in the awards are issued at the end
of the performance and/or service period once the Committee is, at its sole discretion, satisfied that the prescribed
performance targets have been achieved.
The actual number of shares given will depend on the level of achievement of the prescribed performance targets over
the performance period, currently prescribed to be a three-year period. No shares will be delivered if the threshold
performance targets are not achieved, while up to 1.5 times the number of shares that are the subject of the award
will be delivered if the stretched performance targets are met or exceeded.
(v)
Under the TeleChoice RSP, conditional awards vest over a two-year period, once the Committee is, at its sole discretion,
satisfied that the performance and extended service conditions are attained. The total number of shares to be awarded
depends on the level of attainment of the performance targets. No shares will be delivered if the threshold performance
targets are not achieved, while up to 1.3 times the number of shares that are the subject of the award will be delivered
if the stretched performance targets are met or exceeded.
(vi)
Since the commencement of the Plans to the financial year ended 31 December 2015, conditional awards aggregating
25,334,810 (2014: 21,633,330) shares have been granted under the aforesaid Plans, representing the number of shares
to be delivered if the performance targets are achieved at “on-target” level. 2,449,720 shares under the Plans were
released during the financial year ended 31 December 2015 (2014: 1,192,037 shares).
(vii)
During the financial year ended 31 December 2015, conditional awards aggregating 3,193,480 (2014: 3,205,080)
shares have been granted under the Plans, representing the number of shares to be delivered if certain performance
targets are achieved at “on-target” level. An aggregate 7,746,490 shares under the Plans were outstanding as at 31
December 2015 (2014: 6,978,850 shares).
(viii) During the financial year ended 31 December 2015, restricted share awards aggregating 508,000 (2014: 286,000)
shares were also granted under the TeleChoice RSP. These share awards formed 30% (2014: 15%) of the Directors’
remuneration for the financial year ended 31 December 2014 (2014: 31 December 2013) and were granted without
any performance or vesting conditions attached, but subject to a selling moratorium and other terms and conditions.
(ix)
Since commencement of the Plans, no share awards were granted under the Plans at a discount.
49
TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
DIRECTORS’
STATEMENT
