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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
Notes
to the Group annual financial statements
continued
For the year ended 31 May 2017
5.
Employees
continued
5.2 Equity compensation and benefit expense
(a) Equity compensation benefit
The Group operates an equity-settled forfeitable share incentive plan, under which the entity receives services from
employees as consideration for equity instruments of the Group. The fair value of the services received in exchange
for the grant of forfeitable shares is recognised as an expense. The total amount to be expensed is determined by
the fair value of the forfeitable shares granted. The total amount expensed is recognised over the vesting period,
which is the period over which all of the vesting conditions are to be satisfied. At each reporting date, the entity
recognises the impact of any shares that have been forfeited prior to the end of the vesting period, if any, in the
income statement with a corresponding adjustment to equity.
(b) Bonus plans
The Group recognises a liability and an expense for bonuses. A liability is recognised where the Group is
contractually obliged or where there is a past practice that has created a constructive obligation.
The bonus expense is determined based on overall Group performance and other non-financial measures.
In terms of the Group remuneration policy, the joint CEOs may earn an annual incentive bonus of up to 120% of
fixed remuneration, and other executive directors of up to 70%. Senior Management may earn up to 50% of their
annualised fixed salary package.
2017
R’000
2016
R’000
Salaries and wages
362 537
331 546
Bonuses
65 953
71 342
Equity compensation benefit
23 417
23 845
Other
1 078
383
452 985
427 116
Average number of employees for the year was 793 (2016: 1 076).