Ann: Change of Director's Interest Notice, page-35

The calculation of director salaries in 2015/2016/2017 isn't quite that straightforward: http://www.asx.com.au/asxpdf/20160929/pdf/43bkwgpf7znpfn.pdf



However, in 2014 rather than hold shares in escrow with an interest free loan to directors, the company issued options: http://www.asx.com.au/asxpdf/20140522/pdf/42pshlj4hdn2s7.pdf

The options that Pierce let lapse were part of his salary and issued to directors on 22 May 2014: http://www.asx.com.au/asxpdf/20140522/pdf/42pshlj4hdn2s7.pdf.

They didn't eventuate so he misses out on the benefit of that part of his salary. Again, no rational person would exercise options below exercise price. Particularly someone who has missed out on what they probably hoped would be a large portion of their 2014 salary.

Hopefully this clears things up for you.