Note 33  Employee equity participation  continued  Performance Share Units  Hurdle  Reference group  Granted after 31 March 2013  Granted on or before 31 March 2013  50 per cent of the PSUs based solely on  the relative average annual return on  ordinary equity (ROE) over the vesting  period (three and four years) compared  to a reference group of global peers.  A sliding scale applies with 50 per cent  becoming exercisable above the 50th  percentile and 100 per cent vesting at  the 75th percentile.  The current reference group$^{(1)}$ comprises  Barclays PLC, Bank of America  Corporation, Credit Suisse Group AG,  Deutsche Bank AG, Goldman Sachs  Group Inc., JP Morgan Chase, Lazard  Ltd, Morgan Stanley and UBS AG  The reference group comprises ANZ  Group Limited, Commonwealth Bank of  Australia, National Australia Bank  Limited, Westpac Banking Corporation,  Suncorp Metway Limited, Bank of  America Corporation, Citigroup Inc,  Credit Suisse Group AG, Deutsche Bank  AG, Goldman Sachs Group AG, JP  Morgan Chase, Morgan Stanley and  UBS AG.  Hurdle  Required result  Granted after 31 March 2013  Granted on or before 31 March 2013  50 per cent of the PSUs based solely on  the compound annual growth rate  (CAGR) in earnings per share (EPS) over  the vesting period (three to four years).  A sliding scale applies with 50 per cent  becoming exercisable at EPS CAGR of  7.5 per cent and 100 per cent at EPS  CAGR of 12.0 per cent. For example, if  EPS CAGR were 9.75 per cent, 75 per  cent of the Award would become  exercisable. A sliding scale applies with 50 per cent  becoming exercisable at EPS CAGR of  9.0 per cent and 100 per cent at EPS  CAGR of 13.0 per cent. For example, if  EPS CAGR were 11.0 per cent, 75 per  cent of the Award would become  exercisable. (1) Jefferies Group Inc. has been excluded from the reference group for awards made from 2013 following its acquisition by Leucadia  National Corp.  Under both performance hurdles, the objective is to be examined once only, effectively at the calendar quarter end immediately  before vesting. If the condition is not met when examined, the PSUs due to vest will not be exercisable upon vesting.  Other arrangements  There are certain arrangements with employees which take the form of a share-based payment but which are held outside the  MEREP. Employees do not have a legal or beneficial interest in the underlying shares; however the arrangements have the same  economic benefits as those held in MEREP.  Compensation expense relating to these awards for the year ending 31 March 2014 was $0.4 million (2013: $1 million).  167  Performance hurdle 2  Performance hurdle 1  The hurdles are outlined below. PSUs will only be released or become exercisable upon the achievement of certain performance hurdles. Only members of the MGL  and MBL Executive Committees are eligible to receive PSUs. For the PSUs allocated to Executive Committee Members, two  performance hurdles have been determined and each will apply individually to 50 per cent of the total number of PSUs awarded.  These hurdles are set out below. Hurdles are periodically examined by the BRC as part of their ongoing review of the remuneration  approach, to ensure they continue to align the interests of staff and shareholders and provide a challenging but meaningful incentive  to Executive Committee members. The BRC considers historical and forecast market data, the views of corporate governance  bodies, shareholders and regulators as well as peer market practice. No change has been made to the hurdles for FY2014. 