Tiger Brands Integrated Annual Report 2014

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191 Tiger Brands Limited Integrated Annual Report 2014
Annual financial statements
23 Share-based payment plans continued
23.1 General employee share option plan continued
Share appreciation rights continued
The following inputs were used:
Date of grant
Strike
price
(rand)
Expiry
date
Market
price of
underlying
stock at
grant date
(rand)
Expected
volatility
of the
stock over
remaining
life of
option (%)
Expected
dividend
cover
(times)
30/09/2013 299,83 29/09/2019 299,11 24,5 2,0
13/02/2013 299,83 12/02/2019 289,50 23,2 2,0
13/02/2014 254,45 12/02/2020 250,00 21,5 3,0
02/05/2014 272,94 01/05/2020 279,50 21,8 3,0
02/06/2014 298,27 01/06/2020 299,84 21,8 3,0
Volatilities are based on the historical volatility of the Tiger Brands share price matching the remaining
life of each option.
Performance shares
The following table illustrates the number of, and movements in, performance shares during the year:
2014
Restated*
2013
Number Number
Outstanding at the beginning of the year 51 600 –
Granted during the year 82 650 53 400
Forfeited during the year (5 989) (1 800)
Exercised during the year1 – –
Outstanding at the end of the year 128 261 51 600
Exercisable at the end of the year – –
* The amounts have been restated due to the adoption of IAS 19R.
1 The weighted average remaining contractual life for equity-settled options outstanding as at 30 September 2014 is 2,02 years
(2013: 2,37 years).
The weighted average fair value of options granted during the year was R375,21 per option (2013: R262,21 per option).
Options were valued using a modified Black-Scholes model taking into account the dividend cover,
expected exercise pattern and volatility of the Tiger Brands share price.