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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 5 742 411 share awards (1% of current issued share capital of 574 241 248) and the
maximum dilution limit is 28 712 062 (5% of current issued share capital of 574 241 248).
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 million (2020: R9 million).
| 30 June 2021 |
| Offer date |
| – 8 December 2017 |
6.20 |
2 680 |
– |
(500) |
2 180 |
9 636 |
| – 1 November 2018 |
5.50 |
3 530 |
– |
(310) |
3 220 |
14 232 |
| – 30 November 2019 |
3.30 |
5 690 |
– |
(200) |
5 490 |
24 266 |
| – 07 December 2020 |
3.50 |
– |
6 240 |
(540) |
5 700 |
25 194 |
| Total |
|
11 900 |
6 240 |
(1 550) |
16 590 |
73 328 |
Fair value based on closing share price as at 30 June 2021 of R4.42. Weighted average remaining years of 3.3 years.
| |
Group |
| |
Issue
share price
R |
Balance at
30 June 2019
'000 |
Offered
'000 |
Forfeited
'000 |
Balance as at
30 June 2020
'000 |
Fair Value as
at 30 June 2020
R'000 |
| – 8 December 2017 |
6.20 |
4 440 |
– |
(1 760) |
2 680 |
9 889 |
| – 1 November 2018 |
5.50 |
4 430 |
– |
(900) |
3 530 |
13 026 |
| – 30 November 2019 |
3.30 |
– |
5 690 |
– |
5 690 |
20 996 |
| Total |
|
8 870 |
5 690 |
(2 660) |
11 900 |
43 911 |
Fair value based on closing share price as at 30 June 2020 of R3.69. Weighted average remaining years of 2.75.
| |
| |
Number of
shares
2020 |
Number of
shares
2020 |
Movements in number of instruments:
|
|
|
|
|
| Outstanding at the beginning of the period |
1 436 |
1 130 |
– |
– |
| Vested |
|
|
|
|
| Active employees |
1 236 |
306 |
– |
– |
| Outstanding at the end of the period |
2 672 |
1 436 |
– |
– |
This represents the shares vested but not yet exercised.
|