Australia’s Star Entertainment Group has announced that a total of 461,198 performance rights granted to executives on 30 June 2014 have vested due to the achievement of the performance hurdles on testing, including 196,850 performance rights to Managing Director and CEO Matt Bekier.
Star said that the 2014 grant was the first award that comprised a 50% earnings per share (EPS) performance hurdle and a 50% relative total shareholder return (TSR) performance hurdle. The EPS hurdle measures the growth in statutory earnings per ordinary share adjusted for the theoretical win rate in the VIP rebate business. The target hurdle was set by the board by reference to the company’s board-approved five-year business plan.
For FY17, the EPS performance was 24.9 cents and was above the target of 21.8 cents approved by the board. Accordingly, 100% of the EPS component of the FY14 vested.
The company said that its TSR for the four-year period ended 1 October 2017 was 113.5%, which ranked 10th among the defined peer group and was at the 89.5th percentile. 100% of the TSR component vested due to performance being above the 75th percentile.
The 461,198 ordinary shares will now be purchased on-market and registered in the respective executives’ names.