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Performance conditions relating to the performance component of the LTI is shown below:
Performance condition Detail
Weighting Threshold On target
Stretch
Growth in distribution/
dividend per share relative
to peer group*
Simple growth in distribution per share at the end of the
performance period compared to the prior financial year.
40%
95% 102,5%
110%
Share price performance
relative to peer group*
Growth in the share price from the start to the end of the
performance period.
40%
95%
105%
120%
Strategic component
Determined by the remuneration committee in line with
circumstances and projects at the time of the award. It is
measured over the performance period of three years, and
may include project-related or general business activity.
Where considered appropriate, the committee has the
discretion not to apply the strategic component, in which
case this 20% weighting will be split equally between the
other two performance conditions. Achieving each of
the performance conditions and consequent vesting of
performance units occurs severally.
20%
* The peer group comprises the five largest South African REITs by market capitalisation listed on the JSE
The first awards were offered to executives, senior managers, operational and financial managers and staff with specific core, critical or strategic skills in
2014. Some 13% (27 employees) of the total staff complement will participate in the scheme, which is limited to 2% of the current shares in issue with an
initial vesting period of three years from January 2014.
Participants do not pay for the shares. They are also not eligible for dividends until the end of the initial vesting period.
Retention scheme terms
Retention shares vest five years after initial allocation, subject to continued employment for the duration of the vesting period.
Terms of service
Minimum terms and conditions for employing executive directors are governed by South African legislation. If an executive director’s services are
terminated, the committee oversees the settlement of terms, assisted by labour law advisers.
Remuneration of non-executive and executive directors
For breakdown of remuneration of non-executive and executive directors please see note 24 on page 128.
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Hyprop Investments Limited
Integrated Report 2015