| |
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 |
|
| Unvested share allocations by tranche |
Performance
shares |
|
Retention
share |
|
| Tranche 1 |
|
|
|
|
| Grant date |
|
|
1 January 2014 |
|
| Vesting period ends |
|
|
31 December 2018 |
|
| Fair value of shares at grant date |
|
|
R54,77 |
|
| Share price at grant date |
|
|
R76,50 |
|
| The inputs used in the measurement of the fair value at grant date were as follows: |
|
|
|
|
| Expected life |
|
|
5 years |
|
| Risk-free rate after taxation |
|
|
5,8% |
|
| Dividend yield (historic) |
|
|
5,8% |
|
| Tranche 1 of the performance shares vested during the current financial year at a fair value of R123,46 per share. |
|
|
|
|
| Tranche 2 |
|
|
|
|
| Grant date |
1 July 2014 |
|
1 July 2014 |
|
| Vesting period ends |
30 June 2017 |
|
30 June 2019 |
|
| Fair value of shares at grant date |
R65,55 |
|
R58,12 |
|
| Share price at grant date |
R79,51 |
|
R79,51 |
|
| The inputs used in the measurement of the fair value at grant date were as follows: |
|
|
|
|
| Expected life |
3 years |
|
5 years |
|
| Risk-free rate after taxation |
5,9% |
|
5,9% |
|
| Dividend yield (historic) |
6,0% |
|
6,0% |
|
| Tranche 3 |
|
|
|
|
| Grant date |
1 July 2015 |
|
1 July 2015 |
|
| Vesting period ends |
30 June 2018 |
|
30 June 2020 |
|
| Fair value of shares at grant date |
R105,76 |
|
R96,68 |
|
| Share price at grant date |
R121,00 |
|
R121,00 |
|
| The inputs used in the measurement of the fair value at grant date were as follows: |
|
|
|
|
| Expected life |
3 years |
|
5 years |
|
| Risk-free rate after taxation |
6,0% |
|
6,0% |
|
| Dividend yield (historic) |
4,5% |
|
4,5% |
|
| Tranche 4 |
|
|
|
|
| Grant date |
1 July 2016 |
|
1 July 2016 |
|
| Vesting period ends |
30 June 2019 |
|
30 June 2021 |
|
| Fair value of shares at grant date |
R112,56 |
|
R102,32 |
|
| Share price at grant date |
R129,89 |
|
R129,89 |
|
| The inputs used in the measurement of the fair value at grant date were as follows: |
|
|
|
|
| Expected life |
3 years |
|
5 years |
|
| Risk-free rate after taxation |
6,3% |
|
6,3% |
|
| Dividend yield (historic) |
4,8% |
|
4,8% |
|
| Tranche 5 |
|
|
|
|
| Grant date |
1 January 2017 |
|
1 January 2017 |
|
| Vesting period ends |
31 December 2019 |
|
31 December 2021 |
|
| Fair value of shares at grant date |
R100,11 |
|
R90,07 |
|
| Share price at grant date |
R117,31 |
|
R117,31 |
|
| The inputs used in the measurement of the fair value at grant date were as follows: |
|
|
|
|
| Expected life |
3 years |
|
5 years |
|
| Risk-free rate after taxation |
6,4% |
|
6,4% |
|
| Dividend yield (historic) |
5,3% |
|
5,3% |
|
The executive directors were allocated the following percentages of the total shares allocated:
| |
Pieter Prinsloo
(CEO) |
|
Laurence Cohen
(FD) |
|
| Tranche 1 |
|
|
|
|
| Retention shares |
19% |
|
10% |
|
| Tranche 1 of the performance shares vested during the current financial year |
|
|
|
|
| Tranche 2 |
|
|
|
|
| Performance shares |
20% |
|
11% |
|
| Retention shares |
20% |
|
11% |
|
| Tranche 3 |
|
|
|
|
| Performance shares |
20% |
|
11% |
|
| Retention shares |
20% |
|
11% |
|
| Tranche 4 |
|
|
|
|
| Performance shares |
21% |
|
11% |
|
| Retention shares |
21% |
|
11% |
|
The charge to the statement of profit or loss and other comprehensive income for the year ended 30 June 2017 amounted to R12,7 million
(2016: R9,9 million). As the above are equity-settled shared-based payments, the accounting treatment recognises the share-based payments in profit
and loss on a straight-line basis over the vesting period, with a corresponding credit to equity.
|