- Air NZ may issue 3-year performance rights under the Long-Term Incentive Plan.
- AIR has issued 5,276,405 performance rights on 20 October 2021.
Air NZ has had this Plan running since 2015. Under the Plan, executives may be issued 3-year performance rights with no cost to the Company or employees.
Participants will get ordinary shares in the Company at a future date only if future targets, also called vesting conditions, are met.
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Image Description: Air NZ Plane
The rights will vest only if AIR’s share price surpasses a comparison index made of 50:50 between the NZX All Index and the Bloomberg World Airline Index over a 3-year computation period from the issue date.
Conditions included are that 50% of the performance rights will vest if AIR’s share price match up with the comparison index in the measurement period. In addition, for every 1% the share price outpaces the comparison index; an additional 2.5% of performance rights will vest up to the maximum 100%.
There will also be a 6-month opportunity for the performance rights to vest if the share price does not match that index on the third anniversary of the issue date. However, the performance rights will lapse if the opportunity goes unutilised.
AIR has issued 5,276,405 performance rights on 20 October 2021. The rights will give shareholders the right to get AIR shares if vesting conditions are met on or after 14 September 2024.
The Plan has been created to give incentives to management to outpace with time for benefitting shareholders. It is also a part of a more comprehensive compensation package for senior officials.