For the financial year ended 31 December 2015
96
HAW PAR CORPORATION LIMITED
26. EMPLOYEE BENEFITS
(CONTINUED)
(b) During the financial year, options for 544,000 (2014: 526,000) shares were granted to qualifying employees on
3 March 2015 (“2015 Options”) (2014: 3 March 2014 (“2014 Options”)). The fair value of the options granted
using the Trinomial valuation model is approximately $242,000 (2014: $323,000). The significant inputs into the
model are exercise price of $8.58 (2014: $8.55) at the grant date, standard deviation of expected share price
returns of 9% (2014: 13%), 5-year option life and annual risk-free interest rate of 0.7% (2014: 0.3%) per annum.
The volatility measured at the standard deviation of expected share price returns is based on statistical analysis of
daily share prices over a historical period that matches the period to expiry of the options. The 2015 Options are
exercisable from 3 March 2016 and expire on 2 March 2020 (2014 Options exercisable from 3 March 2015 and
expire on 1 March 2019).
(c) Information with respect to share options granted under the 2002 Scheme is as follows:
Number of shares
2015
2014
Under 2002 Scheme:
Outstanding at beginning of the financial year
1,003,000
789,000
Granted
544,000
526,000
Cancelled/ Expired/ Not accepted
(29,000)
(14,000)
Exercised
(169,000)
(298,000)
Outstanding at end of the financial year
1,349,000
1,003,000
Exercisable at end of the financial year
820,000
491,000
Details of share options granted during the financial year:
2015
2014
Expiry date
2.3.2020
1.3.2019
Exercise price
$8.58
$8.55
Aggregate proceeds if shares are issued ($’000)
$4,668
$4,497
NOT E S TO T H E F I NAN C I A L S TAT EME N T S
(CONTINUED)
