Executive Performance Rights Plan (ERPR)
Healthscope’s annual report outlines the objective and terms and conditions of the Company’s ERPR. Under the EPRP, senior management employees are granted awards of rights to acquire Healthscope shares. If the Company achieves specific measures of performance over the three years following the grant date, rights vest and plan participants are able to exercise their rights and acquire Healthscope shares. Performance conditions are specified by the Board and are described below. Rights remain exercisable for up to two years after they vest. Upon exercise, each right entitles the holder to acquire one fully paid ordinary share in Healthscope Ltd at no cost.
The Board adopted a relative Total Shareholder Return (TSR) performance condition for performance rights granted in FY2008 and FY2009. TSR was chosen as it is widely recognized as one of the best indicators of shareholder value creation. TSR represents the change in the market value of the Company over time, including dividends and any other distributions made to shareholders.
Vesting of performance rights is determined according to Healthscope’s TSR performance relative to that of the companies in a comparator group. The comparator group was chosen as it represents the group with which the Company primarily competes for shareholders’ capital. The comparator group comprises a selection of companies included in the S&P/ASX200 index excluding resources companies, financial companies, property trusts and companies involved in property management and development.
The companies included in Healthscope’s comparator group for the relevant years are as follows:
FY2008
|
ABC Learning Centres Ltd
|
Duet Group
|
Orica Ltd
|
|
Adelaide Brighton Ltd
|
Dyno Nobel Ltd
|
Pacific Brands Ltd
|
|
AGL Energy Ltd
|
Emeco Holdings Ltd
|
PaperlinX Ltd
|
|
Alesco Corporation Ltd
|
Energy Developments Ltd
|
PMP Ltd
|
|
Amcor Ltd
|
Envestra Ltd
|
Publishing & Broadcasting Limited
|
|
Ansell Ltd
|
Fairfax Media Ltd
|
Qantas Airways Ltd
|
|
APA Group
|
Flight Centre Ltd
|
Ramsay Health Care Ltd
|
|
APN News & Media Ltd
|
Foster's Group Ltd
|
ResMed Inc
|
|
Aristocrat Leisure Ltd
|
Futuris Corporation Limited
|
Seek Ltd
|
|
Asciano Group
|
Goodman Fielder Ltd
|
Seven Network Ltd
|
|
Austar United Communications Ltd
|
Great Southern Limited
|
Sigma Pharmaceuticals Limited
|
|
Australian Infrastructure Fund
|
GUD Holdings Ltd
|
Singapore Telecommunications Ltd
|
|
AWB Ltd
|
Gunns Ltd
|
Sonic Healthcare Ltd
|
|
Babcock & Brown Infrastructure Group
|
GWA International Ltd
|
Southern Cross Broadcasting (Australia) Limited
|
|
Babcock & Brown Power
|
Harvey Norman Holdings Ltd
|
SP AusNet
|
|
Babcock & Brown Wind Partners Ltd
|
Hastings Diversified Utilities Fund
|
Spark Infrastructure Group
|
|
Billabong International Ltd
|
Hills Industries Ltd
|
Spotless Group Ltd
|
|
Boart Longyear Limited
|
Incitec Pivot Ltd
|
STW Communications Group Limited
|
|
Boral Ltd
|
Invocare Ltd
|
Symbion Health Ltd
|
|
Bradken Ltd
|
Iress Market Technology Ltd
|
Tabcorp Holdings Ltd
|
|
Brambles Industries Ltd
|
James Hardie Industries NV
|
Tattersalls Limited
|
|
Cabcharge Australia Ltd
|
JB Hi-Fi Ltd
|
Telecom Corporation of New Zealand Ltd
|
|
Coates Hire Limited
|
Just Group Limited
|
Telstra Corporation Ltd
|
|
Coca-Cola Amatil Ltd
|
Leighton Holdings Ltd
|
Ten Network Holdings
|
|
Cochlear Ltd
|
Lion Nathan Ltd
|
Timbercorp Limited
|
|
Coles Group Ltd
|
Macquarie Airports
|
Toll Holdings Ltd
|
|
Commander Communications Ltd
|
Macquarie Communications Infrastructure Limited
|
Transfield Services Ltd
|
|
Computershare Ltd
|
Macquarie Infrastructure Group
|
Transpacific Industries Group
|
|
Connecteast Group
|
Macquarie Media Group
|
Transurban Group
|
|
Corporate Express Australia Ltd
|
Metcash Ltd
|
United Group Limited
|
|
Crane Group Ltd
|
MFS Limited
|
Wesfarmers Ltd
|
|
CSR Ltd
|
Monadelphous Group Ltd
|
West Australian Newspapers Ltd
|
|
David Jones Ltd
|
News Corporation
|
Woolworths Ltd
|
|
Downer EDI Ltd
|
Nufarm Limited
|
|
FY2009
|
ABC Learning Centres Ltd
|
Emeco Holdings Ltd
|
Nufarm Limited
|
|
Adelaide Brighton Ltd
|
Energy Developments Ltd
|
Orica Ltd
|
|
AGL Energy Ltd
|
Envestra Ltd
|
Pacific Brands Ltd
|
|
Alesco Corporation Ltd
|
Fairfax Media Ltd
|
PaperlinX Ltd
|
|
Amcor Ltd
|
Flight Centre Ltd
|
PMP Ltd
|
|
Ansell Ltd
|
Foster's Group Ltd
|
Qantas Airways Ltd
|
|
APA Group
|
Futuris Corporation Limited
|
Ramsay Health Care Ltd
|
|
APN News & Media Ltd
|
Goodman Fielder Ltd
|
ResMed Inc
|
|
Aristocrat Leisure Ltd
|
Great Southern Limited
|
Seek Ltd
|
|
Asciano Group
|
GUD Holdings Ltd
|
Seven Network Ltd
|
|
Austar United Communications Ltd
|
Gunns Ltd
|
Sigma Pharmaceuticals Limited
|
|
Australian Infrastructure Fund
|
GWA International Ltd
|
Singapore Telecommunications Ltd
|
|
AWB Ltd
|
Harvey Norman Holdings Ltd
|
Sonic Healthcare Ltd
|
|
Babcock & Brown Infrastructure Group
|
Hastings Diversified Utilities Fund
|
SP AusNet
|
|
Babcock & Brown Power
|
Hills Industries Ltd
|
Spark Infrastructure Group
|
|
Babcock & Brown Wind Partners Ltd
|
Incitec Pivot Ltd
|
Spotless Group Ltd
|
|
Boart Longyear Limited
|
Invocare Ltd
|
STW Communications Group Limited
|
|
Boral Ltd
|
Iress Market Technology Ltd
|
Tabcorp Holdings Ltd
|
|
Bradken Ltd
|
James Hardie Industries NV
|
Tatts Group Limited
|
|
Brambles Industries Ltd
|
JB Hi-Fi Ltd
|
Telecom Corporation of New Zealand Ltd
|
|
Coca-Cola Amatil Ltd
|
Just Group Limited
|
Telstra Corporation Ltd
|
|
Cochlear Ltd
|
Leighton Holdings Ltd
|
Ten Network Holdings
|
|
Commander Communications Ltd
|
Lion Nathan Ltd
|
Timbercorp Limited
|
|
Connecteast Group
|
Macquarie Airports
|
Toll Holdings Ltd
|
|
Consolidated Media Holdings Ltd
|
Macquarie Communications Infrastructure Limited
|
Transfield Services Ltd
|
|
Corporate Express Australia Ltd
|
Macquarie Infrastructure Group
|
Transpacific Industries Group
|
|
Crane Group Ltd
|
Macquarie Media Group
|
Transurban Group
|
|
CSL Ltd
|
Metcash Ltd
|
United Group Limited
|
|
CSR Ltd
|
Mirvac Group Ltd
|
Wesfarmers Ltd
|
|
David Jones Ltd
|
Monadelphous Group Ltd
|
West Australian Newspapers Ltd
|
|
Downer EDI Ltd
|
News Corporation
|
Woolworths Ltd
|
|
Duet Group
|
|
|
|
|
|
|
|
|
|
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