90 / 276
REMUNERATION REPORT
Remuneration report
continued
88
Tiger Brands Limited Integrated Annual Report
2014
vesting in relation to the full number allocated
will be proportionately reduced if company
financial performance targets are not met. The
performance criteria in the following table have
previously been adopted in respect of the
2006 Phantom Cash Option Scheme for the
vesting of 50% of any allocation, and will now
continue to be applied to 100% of any
allocation of share appreciation rights.
Sliding scale for the application of
performance vesting conditions based on a
targeted increase of 3% per annum real
growth rate in HEPS over three, four and
five-year periods
Threshold levels for real
HEPS growth
% of allocation
to vest
>0% and <0,5%
5%
≥0,5% and <1,0%
10%
≥1,0% and <1,5%
16%
≥1,5% and <2,0%
27%
≥2,0% and <2,5%
44%
≥2,5% and <3,0%
75%
≥3,0%
100%
The allocation of share appreciation rights will
be at a reduced level in comparison to
allocations previously made under the Phantom
Cash Option Scheme, with the balance of the
allocation comprising a weighted combination
of the other two elements that are described in
more detail below.
In February 2014, a special discretionary
retention allocation of top-up share appreciation
rights was made to qualifying 2013 Share Plan
reward is defined as the present value of the
future reward outcome of an allocation, given
the targeted future performance of the company
and of its share price.
The combined, weighted implementation of the
above elements of the 2013 Share Plan will
allow Tiger Brands to remain competitive in
annual and share-based incentives, and will
ensure that executives share a significant level
of personal risk with the company’s
shareholders.
Share appreciation rights element
Annual allocations of share appreciation rights
will be made to executives and selected
managers. They will be available to be settled
in equal thirds on the third, fourth and fifth
anniversaries of the date of allocation, but
need not be exercised until the sixth
anniversary, at which time they must be
exercised or they will lapse.
On settlement, the value accruing to
participants will be the appreciation of
Tiger Brands’ share price. Settlement may
be via cash (as is the case in the 2006
Phantom Cash Option Scheme) or in shares,
which shares may be issued and allotted,
or acquired and transferred to participants. It
is the company’s intention that these be settled
in shares.
These share appreciation rights will be subject
to performance vesting criteria in terms of
which the number of share appreciation rights