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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
11. Equity compensation benefit
continued
Forfeitable shares continued
The performance condition for Senior Management for the ninth award grant vesting on 31 August 2019 is as
follows:
t
40% for retention (three years from date of award); and
t
60% financial (30% for growth in core headline earnings per share and 30% based on shareholder returns).
The 30% for growth in core headline earnings per share is based on the following achievements:
t
If growth is 5% above CPI compounded annually over three years, then 20% of the 30% will vest.
t
If growth is 10% above CPI compounded annually over three years, then an additional 50% (i.e. a total of 70%)
of the 30% 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.
t
If growth is 25% above CPI compounded annually over three years, then a further 30% (i.e. a total of 100%) of
the 30% 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 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.
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
3 690 989
29 857
Fifth award
1 288 836
8 648
Sixth award
1 140 180
9 977
Seventh award
1 261 973
11 232
Shares forfeited during the year
(468 086)
(4 132)
Sixth award
(229 214)
(2 006)
Seventh award
(238 872)
(2 126)
Granted during the year
920 592
9 362
Eighth award
1 September 2015 31 August 2018
920 592
9 362
Shares vested during the year
(1 288 836)
(8 648)
Fifth award
31 August 2015 (1 288 836)
(8 648)
At 31 May 2016
2 854 659
26 439
Sixth award
910 966
7 971
Seventh award
1 023 101
9 106
Eighth award
920 592
9 362
Granted during the year
510 675
10 597
Ninth award
18 October 2016 31 August 2019
510 675
10 597
Shares vested during the year
(910 966)
(7 971)
Sixth award
18 October 2016
(910 966)
(7 971)
At 31 May 2017
2 454 368
29 065
Seventh award
1 023 101
9 106
Eighth award
920 592
9 362
Ninth award
510 675
10 597
Refer to note 15 for the expense recognised in the statement of comprehensive income relating to the equity
compensation benefits.
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).
Included in this is R1.3 million (2016: R1.4 million) paid by subsidiaries.
Refer to note 5.3 of the Group annual financial statements for details per Director.
Notes
to the Company annual financial statements
continued
For the year ended 31 May 2017