157 / 202
Tiger Brands Limited integrated annual report
2015 153
23 Share-based payment plans
continued
23.1 General employee share option plan
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
(%)
Dividend
cover
(times)
29/01/2004
51,29 28/01/2014
82,65
22,2
2,5
25/01/2005
75,13 24/01/2015
95,36
20,4
2,0
The interest rate yield curve was derived from the Nedbank Treasury calculation.
Share appreciation rights
The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share
appreciation rights during the year.
2015
2014
Number
WAEP
Number
WAEP
Outstanding at the beginning of the year
955 159
274,81
435 700
299,83
Granted during the year
292 850
385,33
559 010
255,56
Forfeited during the year
(62 449)
284,68
(39 551)
273,41
Exercised during the year
1
–
–
Outstanding at the end of the year
1 185 560
301,30
955 159
274,81
Exercisable at the end of the year
–
–
–
–
1
The weighted average remaining contractual life for equity-settled options outstanding as at 30 September 2015 is 4,38 years
(2014: 5,07 years).
The weighted average fair value of options granted during the year was R95,7 per option (2014: R59,21 per option).
The range of exercise prices for options outstanding at the end of the year was R254,54 to R385,33 (2014: R254,45
to R299,83).
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. Subject to certain performance conditions, one-third of the
equity-settled share options vest on each of the third, fourth and fifth anniversary dates from the date of the original
grant date. All the equity-settled options mature six years after the grant date.
The following inputs were used:
Date of grant
Strike price
of option
(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
04/02/2015
385,33 04/02/2020
394,91
21,3
2,9
Volatilities are based on the historical volatility of the Tiger Brands share price matching the expected remaining life of
each option.