94 / 276
REMUNERATION REPORT
Remuneration report
continued
92
Tiger Brands Limited Integrated Annual Report
2014
Vesting of share appreciation rights and
full-value shares in the event of termination
of employment – The Tiger Brands 2013
Share Plan
In the event that an individual’s employment
is terminated, vesting of any outstanding
(unvested) share options or full-value shares
under the 2013 Share Plan is dependent
upon the reasons for termination. The
termination rules are in line with the
recommendations contained in King III. The
following is a summary of the principles to be
applied in respect of units awarded under the
2013 Share Plan.
Termination of employment is based on the
definition of no fault termination versus that
of fault termination.
Termination event
Old rule (options awarded
before 1 January 2011)
New rule (options awarded from
1 January 2011)
Disposal of a
subsidiary or
business
Performance conditions are waived
and all unvested options are
deemed to vest on the date of
disposal. Such options must be
exercised within a period of six
months after the date of disposal
The number of options to be
retained will be pro-rated based on
the period of service at the date of
disposal relative to the full vesting
period of the unvested options.
A total of 50% of the retained
options must be exercised within
the six-month period after the date
of disposal. The remainder will
continue to be subject to
performance conditions (with a
sliding scale replacing annual
re-testing)
Death
Performance conditions are waived
and all unvested options are
deemed to vest on the date of
death. Such options must be
exercised by the executor within a
period of six months after date of
death
No change – although not in line
with King III, a pragmatic approach
has been taken in view of the small
number of incidents
Dismissals
Options not exercised on or before
the last date of employment will
lapse
No change