152 / 220
/
150
BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
Notes
to the Group annual financial statements
continued
For the year ended 31 May 2017
5.
Employees
continued
5.1 Equity compensation benefit continued
The 30% 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.
Critical accounting estimates and assumptions
In determining the number of forfeitable shares that will vest due to performance conditions being met,
management assesses the attrition rates of staff based on the grades of staff that have been granted awards as
well as the historic staff turnover.
Movements in the number of forfeitable shares outstanding during the year are as follows:
Grant date
Vesting
date
Number
of shares
Fair value of
grant
R’000
At 31 May 2015
8 412 878
68 033
Fifth award
2 951 266
19 803
Sixth award
2 523 776
22 083
Seventh award
2 937 836
26 147
Granted during the year
2 591 066
26 351
Eighth award
1 September 2015 31 August 2018 2 591 066
26 351
Shares forfeited during the year
(612 453)
(5 407)
Sixth award
(287 142)
(2 512)
Seventh award
(325 311)
(2 895)
Shares vested during the year
(3 163 359)
(21 676)
Fifth award
31 August 2015 (2 951 266)
(19 803)
Sixth award
30 November 2015
(94 961)
(831)
Seventh award
30 November 2015
(117 132)
(1 042)
At 31 May 2016
7 228 132
67 301
Sixth award
2 141 673
18 740
Seventh award
2 495 393
22 210
Eighth award
2 591 066
26 351
Granted during the year
1 376 257
28 557
Ninth award
18 October 2016 31 August 2019 1 376 257
28 557
Shares forfeited during the year
(121 226)
(1 154)
Seventh award
(62 650)
(558)
Eighth award
(58 576)
(596)
Shares vested during the year
(2 141 673)
(18 740)
Sixth award
18 October 2016 (2 141 673)
(18 740)
At 31 May 2017
6 341 490
75 964
Seventh award
2 432 743
21 652
Eighth award
2 532 490
25 755
Ninth award
1 376 257
28 557
Refer to note 5.2 for the expense recognised in the income statement relating to the equity compensation benefits.
The fair value of the shares is based on the open market closing price at grant date.
The total number of forfeitable shares issued to Executive Directors during the period is 347 051 (2016: 664 875).
The share-based payment expense in relation to these Executive Directors is R6.5 million (2016: R5.7 million). Refer to
note 5.3 for details of awards per Director.