XML 88 R27.htm IDEA: XBRL DOCUMENT
v3.19.2

Employee share ownership plans | 12 Months Ended
--- | ---
Jun. 30, 2019
Text block [abstract] |
Employee share ownership plans | 23 Employee share ownership plans 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. 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). The DEP is provided to the participants once the underlying shares are allocated or transferred to them. 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 table below provides a description of each of the plans.
Plan |  | STIP and GSTIP |  | LTIP and MAP |  | Transitional Executive KMP awards |  | Shareplus
Type |  | Short-term incentive |  | Long-term incentive |  | Long-term incentive |  | All-employee share purchase plan
Overview |  | The STIP is generally a plan for the Executive KMP and the GSTIP is a plan for BHP senior management who are not KMP. 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 LTIP is a plan for Executive KMP and awards are granted annually. The MAP is a plan for BHP senior management who are not KMP. The number of share rights awarded is determined by a participant’s role and grade. |  | Awards 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. No awards were granted to Executive KMP in FY2019. |  | Employees may contribute up to US$5,000 to acquire shares in any plan year. On the third anniversary of the start of a plan year, the Group will match the number of acquired shares.
Vesting conditions |  | Service conditions only. |  | LTIP: Service and performance conditions. For 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. 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. 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. For 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. Where TSR is below the median, awards will not vest. 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. MAP: Service conditions only. |  | Service conditions and performance conditions. The Remuneration Committee has absolute discretion to determine if the performance condition has been met and whether any, all or part of the award will vest (or otherwise lapse), having regard to (but not limited to) the BHP’s TSR(1) over the three-or four-year performance period (respectively), the participant’s contribution to Group outcomes and the participant’s personal performance (with guidance on this assessment from the CEO). |  | Service conditions only.
Vesting period |  | 2 years |  | LTIP – 5 years MAP – 1 to 5 years |  | 3 or 4 years |  | 3 years
Dividend Equivalent Payment |  | STIP – Yes GSTIP – No |  | LTIP – Yes MAP – No |  | No |  | No
Exercise period |  | None |  | LTIP – None MAP – None |  | None |  | None
(1) | BHP’s TSR is the weighted average of the TSRs of BHP Group Limited and BHP Group Plc.
Employee share awards
2019 |  | Number of awards at the beginning of the financial year |  |  | Number of awards issued during the year |  |  | Number of awards vested and exercised |  |  | Number of awards lapsed |  |  | Number of awards at the end of the financial year |  |  | Number of awards vested and exercisable at the end of the financial year |  |  | Weighted average remaining contractual life (years) |
BHP Group Limited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
STIP awards |  |  | 308,028 |  |  |  | 271,355 |  |  |  | 65,392 |  |  |  | – |  |  |  | 513,991 |  |  |  | – |  |  |  | 0.7 |
GSTIP awards |  |  | 2,008,455 |  |  |  | – |  |  |  | 780,315 |  |  |  | 85,656 |  |  |  | 1,142,484 |  |  |  | 15,932 |  |  |  | 0.2 |
LTIP awards |  |  | 5,980,975 |  |  |  | 947,153 |  |  |  | – |  |  |  | 1,197,239 |  |  |  | 5,730,889 |  |  |  | – |  |  |  | 2.1 |
Transitional Executive KMP awards |  |  | 46,840 |  |  |  | – |  |  |  | 16,160 |  |  |  | 7,260 |  |  |  | 23,420 |  |  |  | – |  |  |  | 0.2 |
MAP awards |  |  | 10,379,263 |  |  |  | 4,604,638 |  |  |  | 2,416,107 |  |  |  | 1,077,449 |  |  |  | 11,490,345 |  |  |  | 94,921 |  |  |  | 1.3 |
Shareplus |  |  | 4,775,079 |  |  |  | 2,025,302 |  |  |  | 2,590,297 |  |  |  | 352,939 |  |  |  | 3,857,145 |  |  |  | – |  |  |  | 1.2 |
BHP Group Plc |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSTIP awards |  |  | 63,868 |  |  |  | – |  |  |  | 22,911 |  |  |  | 11,531 |  |  |  | 29,426 |  |  |  | – |  |  |  | 0.2 |
MAP awards |  |  | 315,451 |  |  |  | 132,676 |  |  |  | 107,756 |  |  |  | 67,340 |  |  |  | 273,031 |  |  |  | – |  |  |  | 1.3 |
Shareplus |  |  | 282,159 |  |  |  | 111,866 |  |  |  | 145,666 |  |  |  | 24,289 |  |  |  | 224,070 |  |  |  | – |  |  |  | 1.2 |
Employee share awards expense is US$138.275 million (2018: US$123.313 million; 2017: US$106.214 million) and includes Onshore US. Fair value and assumptions in the calculation of fair value for awards issued
2019 |  | Weighted average fair value of awards granted during the year US$ |  |  | Risk-free interest rate |  |  | Estimated life of awards |  |  | Share price at grant date |  |  | Estimated volatility of share price |  |  | Dividend yield |
BHP Group Limited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
STIP awards |  |  | 24.10 |  |  |  | n/a |  |  |  | 3 years |  |  |  | A$33.50 |  |  |  | n/a |  |  |  | n/a |
LTIP awards |  |  | 17.36 |  |  |  | 2.04 | % |  |  | 5 years |  |  |  | A$33.50 |  |  |  | 30.0 | % |  |  | n/a |
MAP awards (1) |  |  | 21.29 |  |  |  | n/a |  |  |  | 1-5 years |  |  |  | A$33.83 / A$33.41 / A$33.50 |  |  |  | n/a |  |  |  | 5.30 | %
Shareplus |  |  | 20.68 |  |  |  | 2.13 | % |  |  | 3 years |  |  |  | A$28.29 |  |  |  | n/a |  |  |  | 4.71 | %
BHP Group Plc |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MAP awards |  |  | 18.68 |  |  |  | n/a |  |  |  | 1-5 years |  |  |  | £16.71 |  |  |  | n/a |  |  |  | 5.80 | %
Shareplus |  |  | 14.71 |  |  |  | 0.86 | % |  |  | 3 years |  |  |  | £14.04 |  |  |  | n/a |  |  |  | 5.40 | %
(1) | Includes MAP awards granted on 24 September 2018, 12 November 2018 and 18 December 2018.
Recognition and measurement The fair value at grant date of equity-settled share awards is charged to the income statement over the period for which the benefits of employee services are expected to be derived. The fair values of awards granted were estimated using a Monte Carlo simulation methodology and Black-Scholes option pricing technique and consider the following factors:
• |  | exercise price;
• |  | expected life of the award;
• |  | current market price of the underlying shares;
• |  | expected volatility using an analysis of historic volatility over different rolling periods. For the LTIP, it is calculated for all sector comparators and the published MSCI World index;
• |  | expected dividends;
• |  | risk-free interest rate, which is an applicable government bond rate;
• |  | market-based performance hurdles;
• |  | non-vesting conditions.
Where awards are forfeited because non-market-based vesting conditions are not satisfied, the expense previously recognised is proportionately reversed. The tax effect of awards granted is recognised in income tax expense, except to the extent that the total tax deductions are expected to exceed the cumulative remuneration expense. In this situation, the excess of the associated current or deferred tax is recognised in other comprehensive income and forms part of the employee share awards reserve. The fair value of awards as presented in the tables above represents the fair value at grant date. In respect of employee share awards, the Group utilises the Billiton Employee Share Ownership Trust and the BHP Billiton Limited Employee Equity Trust. The trustees of these trusts are independent companies, resident in Jersey. The trusts use funds provided by the Group to acquire ordinary shares to enable awards to be made or satisfied. The ordinary shares may be acquired by purchase in the market or by subscription at not less than nominal value. The BHP Billiton Limited Employee Equity Trust has waived its rights to current and future dividends on shares held to meet future awards under the plans.

X
- Definition Text block. + References No definition available. + Details
Name: | bhp_TextBlockAbstract
Namespace Prefix: | bhp_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for share-based payment arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 2 -IssueDate 2018-01-01 -Paragraph 44 -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=2&date=2018-03-01&anchor=para_44&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DisclosureOfSharebasedPaymentArrangementsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration