Service conditions and performance conditions. Vesting occurs on a sliding scale when BHP’s TSR measured over the performance period is between the median TSR of the relevant comparator group(s) up to a nominated level of TSR outperformance over the relevant comparator group(s), as determined by the Committee, above which 100 per cent of the award will vest. Where TSR is below the median, awards will not vest. From the establishment of the LTIP in 2004 until the awards granted in December 2016, this percentage was set at 5.5 per cent per year.įor awards granted from December 2017 onwards, 25 per cent of the award will vest where BHP’s TSR is equal to the median TSR of the relevant comparator group(s), as measured over the performance period. For the awards to vest in full, BHP’s TSR must exceed the Peer Group TSR and Index TSR (if applicable) by a specified percentage per year, determined for each grant by the Remuneration Committee.

LTIP: Service and performance conditions.įor awards granted from December 2013 onwards, BHP’s Total Shareholder Return (TSR) (1) performance relative to the Peer Group TSR over a five-year performance period determines the vesting of 67 per cent of the awards, while performance relative to the Index TSR (being the index value where the comparator group is a market index) determines the vesting of 33 per cent of the awards.

On the third anniversary of the start of a plan year, the Group will match the number of acquired shares. No awards were granted to Executive KMP in FY2019.Įmployees may contribute up to US$5,000 to acquire shares in any plan year. The number of share rights awarded is determined by a participant’s role and grade.Īwards may be granted to new Executive KMP recruited from within the Group to bridge the gap created by the different timeframes of the vesting of MAP awards, granted in their non-KMP roles, and LTIP awards, granted to Executive KMP. The MAP is a plan for BHP senior management who are not KMP. The LTIP is a plan for Executive KMP and awards are granted annually. Under both plans, half of the value of a participant’s short-term incentive amount is awarded as rights to receive BHP Group Limited or BHP Group Plc shares at the end of the vesting period. The STIP is generally a plan for the Executive KMP and the GSTIP is a plan for BHP senior management who are not KMP. The table below provides a description of each of the plans.

Awards under the plans do not confer any rights to participate in a share issue however, there is discretion under each of the plans to adjust the awards in response to a variation in the share capital of BHP Group Limited or BHP Group Plc. The DEP is provided to the participants once the underlying shares are allocated or transferred to them. Some awards are eligible to receive a cash payment, or the equivalent value in shares, equal to the dividend amount that would have been earned on the underlying shares awarded to those participants (the Dividend Equivalent Payment, or DEP). Awards, in the form of the right to receive ordinary shares in either BHP Group Limited or BHP Group Plc, have been granted under the following employee share ownership plans: Long-Term Incentive Plan (LTIP), Short-Term Incentive Plan (STIP), Management Award Plan (MAP), Group Short-Term Incentive Plan (GSTIP), Transitional Executive KMP awards and the all-employee share plan, Shareplus.

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