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REMUNERATION REPORT
Remuneration report
continued
90
Tiger Brands Limited Integrated Annual Report
2014
As the individual is effectively opting to put an
element of a cash bonus that would otherwise
accrue to him/her at risk, the bonus deferral
sub-element of the 2013 Share Plan may be
referred to as a “co-investment plan”. All
restricted shares will vest after three years and
are not subject to any further performance
conditions. The restricted share element
provides for share-based retention to those
executives who through their performance on
an annual basis have demonstrated their value
and commitment to the company.
Vesting of share options in the event of
termination of employment – Phantom Cash-settled
Option Scheme
In the event that an individual’s employment is
terminated, vesting of any outstanding
(unvested) share options under the Phantom
Cash-settled Option Scheme is dependent upon
the reasons for termination. The termination
rules are in line with the recommendations
contained in King III following certain changes
which were made to the rules in late 2010.
A comparison of the old and new rules is set
out in the table that follows. The new rules are
applicable to phantom cash options awarded
from 1 January 2011 onwards.
Restricted share element
On an annual basis, executives, senior
managers and key talent will receive a grant
of restricted shares. The value of restricted
shares granted will be linked to the annual
cash bonus scheme, in one of, or a
combination of the following:
Bonus matching
Ϣ
Ϣ
Matching, according to a specified ratio,
the actual annual cash incentive accruing
to the executive. Standard matching ratios
have been set for each grade, based on:
•
the on-target bonus percentage for the
grade; and
•
the required balance within the offers of
full-value shares between performance
shares and restricted shares:
•
Chief Executive Officer – 70%/30%,
•
F Lower – 60%/40%, and
•
E Upper and E Lower – 50%/50%.
Bonus deferral
Ϣ
Ϣ
An elective, prior year-end deferral of
a portion (25%, 33% or 50%) of an
individual’s actual bonus calculation and its
immediate conversion into restricted shares,
with matching by the company (according to
a set ratio) with additional restricted shares.