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Notes to the financial statements
continued
for the year ended 30 September 2015
156
Tiger Brands Limited integrated annual report
2015
23 Share-based payment plans
continued
23.1 General employee share option plan
continued
The following inputs were used:
Date of grant
Strike price
of option
(rand)
Expiry
date
Market price
of the underlying
stock at
grant date
(rand)
Expected
volatility
of the
stock over
the remaining
life of
option
(%)
Expected
dividend
cover
(times)
13/02/2013
299,83 12/02/2019
289,50
24,5
3,0
01/10/2012
265,42 30/09/2018
272,35
24,5
3,0
02/07/2012
252,01 01/07/2018
247,00
25,1
3,0
03/02/2012
253,18 02/02/2018
255,00
25,1
3,0
01/06/2011
186,97 31/05/2017
194,90
25,1
3,0
02/02/2011
189,09 01/02/2017
188,16
25,1
3,0
03/02/2010
172,07 02/02/2016
176,50
24,6
3,0
The average volatility was 24,6% (2014: 27,8%) and the risk-free rate ranged from 6,73% to 7,44% (2014: 6,37%
to 7,38%) during the year.
The carrying amount of the liability relating to the cash-settled options at 30 September 2015 is R37,9 million
(2014: R182,0 million) – refer to note 30. Cash-settled options exercised during the year amounted to R52,5 million
(2014: R80,5 million).
Volatilities are based on the historical volatility of the Tiger Brands share price matching the expected remaining life of
each option.
23.2 Black managers participation rights scheme (equity settled)
In terms of the BEE transaction implemented on 17 October 2005, 4 381 831 Tiger Brands shares were acquired by
the Tiger Brands Black Managers Trust. The allocation of vested rights entitles beneficiaries to receive Tiger Brands
shares (after making capital contributions to the Black Managers Trust) at any time after the lock-in period. In respect of
options allocated on or before 31 July 2010, the lock-in period ended on 31 December 2014. In respect of
allocations made after 31 July 2010, the lock-in date will be the latter of 31 December 2014 or, in respect of one-third
of the allocations, three years after the allocation, the next third, four years and the last third, five years after the
allocation. These vested rights are non-transferable.
After the lock-in date, the beneficiaries may exercise their vested rights, in which event the beneficiary may:
❍❍
instruct trustees to sell all of their shares and distribute the proceeds to them, net of the funds required to pay the
capital contributions, taxation (including employees’ tax), costs and expenses
❍❍
instruct the trustees to sell sufficient shares to fund the capital contributions, pay the taxation (including employees’
tax), costs and expenses, and distribute to them the remaining shares to which they are entitled
❍❍
fund the capital contributions, taxation (including employees’ tax) costs and expenses themselves and receive the
shares to which they are entitled.
The expense recognised for employee services received during the year to 30 September 2015 is R22,7 million
(2014: R17,8 million).