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Tiger Brands Limited Integrated Annual Report
2014
Remuneration report
The vesting of the 2013 and 2014
performance shares will thus be based on the
following relationships:
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Ϣ
If Tiger Brands’ TSR over the three-year
period places it in 15th position out of the
30 companies comprising the “index”, then
the targeted number (one-third of the
maximum number) of performance shares
awarded will vest.
Ϣ
Ϣ
If Tiger Brands’ TSR over the three-year
period places it in 7th position or better,
then the maximum number (three times the
targeted number) of performance shares
awarded will vest.
Ϣ
Ϣ
If Tiger Brands’ TSR over the three-year
period places it in 23rd position or worse,
then all performance shares awarded will
be forfeited.
Ϣ
Ϣ
If Tiger Brands’ performance over the
three-year period lies between 7th position
and 15th position on the one hand, or
between 15th position and 23rd position
on the other hand, then a pro-rated number
of performance shares will vest.
No retesting against the performance criteria
will be allowed. Any performance shares
which do not vest at the end of the three-year
period will be forfeited. It is envisaged that the
awards of performance shares will feature at
all executive and senior management levels,
but feature more strongly the higher the
participant’s grade within the organisation.
participants who either did not earn a short-term
incentive bonus in 2013 or whose short-term
incentive bonus was based on a performance
below the on-target threshold. The purpose of
this special allocation was to ensure the
retention of key strategic employees of the
group. This special retention allocation of share
appreciation rights is subject to the same
performance conditions and vesting periods to
which the normal annual allocations of share
appreciation rights are subject. A total number
of 108 844 options, at a strike price of
R254,45 per share, were allocated in terms
hereof.
Performance share element
Annual conditional awards of performance
shares will be made to executives and senior
managers. Performance shares will vest on the
third anniversary of their award, to the extent that
the company has met specified performance
criteria over the intervening period. Essentially the
value per share that vests is the full value of the
share (there is no strike price), but the number of
shares that will vest will depend on the
company’s performance over the intervening
three-year period against set targets.
The board will determine the performance
criteria for each award. In respect of the
awards made in February 2013 and
February 2014, it was agreed that vesting
will be determined in terms of the company’s
comparative total shareholder return (TSR) in
relation to the constituent members of the
FINDI 30 Index.