Annual Report 2015
143
27 EQUITY COMPENSATION BENEFITS
(continued)
b) Stock option plan
(continued)
Exercise
Expiry date
price
2015
2014
15-Dec-15
$78.78
31,841
46,665
20-Dec-16
$90.19
93,301
124,503
20-Dec-17
$86.75
104,156
187,867
20-Dec-18
$80.00
137,160
167,038
20-Dec-19
$101.80
11,876
11,876
21-Feb-21
$85.94
143,481
224,419
3-Feb-22
$72.99
254,739
350,306
30-Jan-23
$92.67
336,496
336,496
31-Dec-24
$104.41
342,415
342,415
12-Dec-25
$110.03
355,800
–
1,811,265
1,791,585
As at September 30, 2015, none (2014: none) of the outstanding options were anti-dilutive and therefore not included in the
calculation of diluted earnings per share.
The fair value of the stock options have been determined using a binomial option-pricing model. The assumptions used in the
calculation of the fair value are as follows:
Grant date
December 18, 2014 to March 5, 2015
Number granted
355,800
Exercise price
$110.03
Share price at grant date
$118.20 to $119.75
Risk free interest rate
2.0% per annum
Expected volatility
7.5% per annum
Dividend yield
3.65% per annum
Exercise term
Option exercised when share price is twice the exercise price
Fair value
$8.53 to $10.41
The expected volatility is based on historical volatility of the share price over the last five years.
The weighted average share price for share options exercised during the year was $81.34. For options outstanding at September
30, 2015 the exercise price ranged from $72.99 to $110.03 and the weighted average remaining contractual life was 9.1
years.
The total expense for the share option plan was $5.735 million (2014: $8.150 million).
