128 / 148
Notes to the consolidated
financial statements
continued
for the year ended 30 June 2017
126
Hyprop Investments Limited
Integrated annual report and consolidated financial statements
2017
24.
Auditor’s remuneration
June 2017
R000
June 2016
R000
Auditor’s remuneration – fees paid to external auditors for the attest function
KPMG
2 362
Grant Thornton
186
2 044
Ernst & Young
627
821
3 175
2 865
Other auditor’s remuneration – internal audit services
PricewaterhouseCoopers
1 331
1 294
Other auditor’s remuneration – other services
KPMG
149
1 454
Grant Thornton
105
Ernst & Young
121
1 480
2 974
25.
Employee remuneration
Equity-settled share-based employee remuneration
On 1 January 2014, the group implemented a long-term employee incentive scheme (the conditional share plan (CUP)), which consists of two
components – performance shares and retention shares. Both the performance and the retention components of the scheme are settled in Hyprop
shares.
Performance shares
In terms of the CUP, fully paid awards are made on an annual basis, comprising performance shares and retention shares. The split between
performance shares and retention shares is 70%:30% for all participants.
The performance conditions for the shares allocated as performance shares are as follows:
■■
Growth in distribution per share relative to the peer group (weighting 40%)
■■
Share price performance relative to the peer group (weighting 40%)
■■
Strategic component, which is determined by the remuneration committee in line with the prevailing circumstance and projects at the time of
the award (weighting 20%).
Each of the performance conditions will be measured over a three-year performance period. Participants must be employed until the end of the
vesting period to be eligible for the award.
Retention shares
Retention shares vest after five years, provided the participant is still employed by the group.
Reconciliation of shares allocated in terms of the CUP
Number of
performance
shares
Number of
retention
shares
Unvested at 30 June 2015
214 617
91 981
Granted
78 282
33 549
Forfeited
(7 955)
(3 757)
Vested
(1 356)
(234)
Unvested at 30 June 2016
283 588
121 539
Granted
86 961
36 063
Forfeited
(3 368)
(405)
Vested
(106 370)
(3 591)
Unvested at 30 June 2017
260 811
153 606