|
In the 2018 financial year a new share award plan was implemented. The purpose of the plan is to retain, motivate and reward eligible employees who are able to influence the performance and growth strategies of
the Company, on a basis which aligns their interests with those of the Group's shareholders.
Share awards will be issued to identified participants by the Remuneration Committee and Board. The number of share awards to be allocated to an eligible employee will primarily be based on the identified employee's
annual salary, grade, performance, retention and attraction requirements and market benchmarks. The number of share awards will be recommended by the Remuneration Committee at the time that share awards are
granted per an award letter.
Eligibility for participation to the plan will be considered on an annual basis. Share awards will constitute conditional shares in AfroCentric Investment Corporation Limited and on vesting date this will be issued
to the identified participant in equity shares at no cost. The maximum annual allocation is 5 543 773 share awards (1% of the Company's issued shares as at the date of approval of the AfroCentric Group Management
Long Term Incentive Plan by the Board and shareholders of the Company) and the maximum dilution limit is 27 718 866 (5% of the Company's issued shares as at the date of approval of the AfroCentric Group Management
Long-Term Incentive Plan by the Board and shareholders of the Company).
AfroCentric expects that 90% of awards will vest to participants at the end of the plan. The share awards are subject to staggered vesting, i.e. vesting of the share awards following the three-year retention period
in three equal tranches. The charge for the year is R10.2 million.
The share price on the respective grant dates on 30 November 2019 of R3.30 (2018: R5.20) and (2017: R6.30), was used to determine the IFRS 2 charge for 2020.
| 30 June 2020 |
|
|
|
|
|
|
|
|
| Offer date |
| – 8 December 2017 |
6.2 |
4 440 |
|
(1 760) |
2 680 |
989 |
|
| – 1 November 2018 |
5.5 |
4 430 |
|
(900) |
3 530 |
1 302 |
|
| – 30 November 2019 |
3.3 |
|
5 690 |
|
5 690 |
2 100 |
|
| |
8 870 |
5 690 |
(2 660) |
11 900 |
4 391 |
|
Fair value based on closing share price as at 30 June 2020 of R3.69.
| 30 June 2019 |
Group |
|
|
| Offer date |
Issue
share price
R |
Balance at
30 June 2018
'000 |
Offered
'000 |
Forfeited
'000 |
Balance as at
30 June 2019
'000 |
Fair Value as
at 30 June 2019
R'000 |
|
| – 8 December 2017 |
6.2 |
4 440 |
– |
|
4 440 |
2 198 |
|
| – 1 November 2018 |
5.5 |
|
4 430 |
|
4 430 |
2 193 |
|
|
4 440 |
4 430 |
– |
8 870 |
4 391 |
|
Fair value based on closing share price as at 30 June 2019 of R4.95.
|
|
|
|
|
|
|
|
|
|
| |
Number of
shares
2019 |
|
Number of
shares
2019 |
|
|
|
|
|
|
|
|
|
| Outstanding at the beginning of the period |
1 130 |
|
565 |
|
– |
|
– |
|
|
|
|
|
|
|
|
|
| Active employees |
306 |
|
565 |
|
– |
|
– |
|
| 1 436 |
|
1 130 |
|
– |
|
– |
|
This represents the shares vested but not yet exercised. Exercise price will be the share price as at grant date. |