DIRECTORS’ REPORT Continued 12.DIVIDENDS On 30 July 2017, 114,617 restricted shares that were granted on 15 December 2016 were released to the previous CEO. The Myer paid a final dividend of 2.0 cents per share for the full year grant related to the deferred component of the FY2016 short FY2017 on 9 November 2017 (with a Record Date of 28 term incentive payment. September 2017), totalling $16.4 million. During the financial year the Company granted 2,432,432 The Board determined that no interim dividend would be paid for alignment rights to the current CEO, and 555,555 alignment the period ending 27 January 2018. rights to the Chief Merchandise Officer.During the financial The Board determined that no final dividend would be paid for year 67,567 alignment rights vested to the CEO and 15,432 the period ending 28 July 2018. rights vested to other executives. No shares were issued under the alignment rights plan. Further information regarding dividends is set out in the Financial Statements (at note F3). The table below sets out the details of performance rights that have been granted under the LTIP Offer and the CEO Offer and 13. PERFORMANCE RIGHTS GRANTED OVER which remain on issue as at the date of this Directors’ Report. UNISSUED SHARES A holder of a performance right may only participate in new The Myer Long Term Incentive Plan (LTIP) operates forselected issues of securities of the Company if the performance right has senior executives and has been in operation since December been exercised, participation is permitted by its terms, and the 2006. Under theLTIP, the Company hasgranted eligible shares in respect of the performance rights have been allocated executives performance rights overunissued ordinary shares of and transferred to the performance right holder before the the Company, subject to certain vesting conditions. Shares Record Date for determining entitlements to the new issue. delivered to senior executives asa result of the vesting of Further information about performance rights issued under the performance rights can be-either issued as newshares or LTIP (including the performance conditions attached to the purchased on market. performance rights granted under the LTIP Offer, and the Each performance right entitles the holder to acquire one performance rights granted to the Key Management Personnel ordinary fully paid share in the Company (subject to the of the Company) is included in the Remuneration Report. adjustments outlined below). 14. SHARES ISSUED ON THE EXERCISE OF Since 2011, only performance rights were grantedunderthe OPTIONS AND PERFORMANCE RIGHTS LTIP. During thefinancial year, the Company granted 1,636,363 performance rights to the previous CEOundertheFY2018 LTIP From time to time, the Company issues fully paid ordinary (CEO Offer); and 9,614,086 performance rights were granted to shares in the Company to the Myer Equity Plans Trust (Trust) otherselected senior executives underthe LTIP (LTIP Offer); for the purpose of meeting anticipated exercises of securities totalling 11,250,449 performance rights granted. granted under the LTIP. To calculate the issue price of shares issued to the Trust, the Company uses the five-day volume The performance rightsgrantedundereach offer are subject to weighted average price of the Company’s shares as at the close different performance conditions. of trading on the date of issue. No performancerights have been granted since the end of the During the period ended 28 July 2018, 450,000 fully paid financial year ended 28 July 2018. ordinary shares were purchased on market by the Trust and A prior grant of 1,415,060 performance rights to senior 459,675 shares were transferred from the Trust for performance executives made on 15 December 2014 expired on 26 rights issued under the LTIP in 2015 (vested 26 September September 2017. 2017). Since 28 July 2018, no shares have been issued to or otherwise acquired by the Trust, and no fully paid ordinary On 26 September 2017, a total of459,675 performance rights shares of the Company held by the Trust were transferred to granted under the LTIP in FY2015 vested, and 459,675 fully participants in the LTIP. paid ordinary shares in the Company were issued to participants. Number of performance rights remaining on Date performance rights granted Expiry date Issue price issue* 5 January 2016 (grant to CEO under CEO offer) 31Oct2020 nil 939,130 5 January 2016 (grant to senior executives under the LTIP offer) 31Oct2020 nil 2,339,125 22 December 2016 (grant to CEO under CEO offer) 31Oct2019 nil 808,443 22 December 2016 (grant to senior executives under the LTIP offer) 31Oct2019 nil 1,592,361 21 December 2017 (grant to CEO under CEO offer) 31Oct2020 nil 1,636,363 21 December 2017 (grant to senior executives under the LTIP offer) 31Oct2020 nil 6,773,179 4 June 2018 (grant to CEO under Alignment Equity offer) 4Jun2021 nil 2,432,432 25 June 2018 (grant to senior executive under Alignment Equity offer) 25Jun2021 nil 555,555 Closing balance 17,076,588 *Each performance right entitles the holder to receive one fully paid ordinary sharein the Company, subject to the satisfaction of the relevant performance outcomes. The number of performance rights that a holder is entitled to receive on the exercise of a performance right may also be adjusted in a manner consistent with the ASX Listing Rules if there is a pro-rata issue of shares or a reconstruction of the capital of the Company. 22 Myer Annual Report 2018