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BLUE LABEL INTEGRATED ANNUAL REPORT 2016
Remuneration report
continued
– If growth in core headline
earnings per share exceeds CPI
plus 10%, then an additional
30% of the 60% will be paid.
•
Group performance (20%):
– If growth in core headline
earnings per share is less than
CPI, no element of the 20% will
be paid.
– If growth in core headline
earnings per share is equal to CPI
plus 10%, then 70% of the 20%
will be paid, either in full or pro
rata, as the case may be.
– If growth in core headline
earnings per share exceeds CPI
plus 10%, then an additional
30% of the 20% will be paid.
•
Non-financial (20%):
The following criteria will be taken
into account in determining
qualification for the 20%: the
achievement of agreed transformation
targets, progress in delivering its
growth strategy, the roll out of its
transactional footprint, the rate and
level of progress made in respect of
organisational development and
succession planning, together with
the application of leadership qualities,
corporate governance best practices
and risk mitigation.
Forfeitable share scheme
The forfeitable share scheme vesting
criteria for the 2013 share scheme
allocation was as follows:
•
40% for retention (three years from
date of award);
•
60% financial (50% for growth in
core headline earnings per share
and 10% based on shareholder
returns);
•
The 50% for growth in core
headline earnings per share was
based on the following
achievements:
– If growth is 5% above CPI
compounded annually over three
years, then 20% of the 50%
would vest.
– If growth is 10% above CPI
compounded annually over three
years, then an additional 50%
(i.e. a total of 70%) of the 50%
would vest.
– If growth is 25% above CPI
compounded annually over three
years, then a further 30% (i.e. a
total of 100%) of the 50%
would vest.
The measurement period was from
1 June 2013 to 31 May 2016.
•
The 10% for shareholder return
was based on a 10% compounded
growth in the share price over the
three-year vesting period, measured
with reference to the weighted
average price per share during the
month of the commencement of
the allocation plus dividends over
the three-year period against the
weighted average share price for
the month during which the vesting
takes place.
In line with the criteria being met in
all respects, vesting of the 2013 share
scheme allocations fell due on 31
August 2016. The vesting of these
awards was postponed due to the
Company trading under a Cautionary
Announcement with regard to the
subscription of shares in Cell C
Proprietary Limited. The cautionary
was, however, withdrawn on 18
October 2016 and accordingly the
2013 share awards vested on
that date.
The financial performance criteria for
the forfeitable shares allocated in
2014 and 2015 to Senior
Management will be measured at
subsidiary level as opposed to Group
level.
The vesting criteria for the forfeitable
shares allocated in September 2016 to
Executive Directors are as follows:
•
33.33% for retention (three years
from date of award);
•
66.67% financial (33.33% for
growth in core headline earnings
per share and 33.33% based on
shareholder returns);
•
The 33.33% for growth in core
headline earnings per share is based
on the following achievements:
– If growth is 5% above CPI
compounded annually over three
years, then 20% of the 33.33%
will vest.
– If growth is 10% above CPI
compounded annually over three
years, then an additional 50%
(i.e. a total of 70%) of the
33.33% would vest. If growth is
between 5% and 10% above CPI
over the three years then the
additional 50% will be reduced
on a pro-rata basis.
– If growth is 25% above CPI
compounded annually over three
years, then a further 30% (i.e. a
total of 100%) of the 33.33% will
vest. If growth is between 10% and
25% above CPI over the three years
then the additional 30% will be
reduced on a pro-rata basis.
•
The 33.33% for shareholder return
is based on a 10% compounded
growth in the share price over the
three-year vesting period, measured
with reference to the weighted
average price per share during the
month of the commencement of
the allocation plus dividends over
the three-year period against the
weighted average share price for
the month during which the vesting
takes place.
The measurement period is from
1 June 2016 to 31 May 2019.