Annual Financial Statements 2020 slide image

Annual Financial Statements 2020

74 14 ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS CONTINUED 37. 37.1 Equity-linked transactions Share-based payments The company's share incentive schemes enable key management personnel and senior employees to benefit from the performance of SBG and Liberty Holdings Limited shares. 2020 N$'000 2019 N$'000 Summary of the company's share incentive schemes and expenses recognised in staff costs: Equity-settled share-based payments (GSIS and Purros) Deferred Bonus Scheme 2012 (DBS 2012) Total expense recognised in staff costs Summary of liabilities recognised in other liabilities: EGS DBS Performance reward plan 34 385 5 177 5 177 6 219 40 604 2 610 2 516 617 211 1 693 2 821 4 826 37. 37.2 STANDARD BANK NAMIBIA LIMITED Annual financial statements 2020 Equity-linked transactions continued Equity compensation plans continued The following options granted to employees, including executive directors, had not been exercised at 31 December 2020 or at 31 December 2019: Number of ordinary shares 6 250 Purros Trust Share Scheme Option price range Weighted average price Option expiry year 98.8 98.8 Year to 31 December 2021 All rights attached to this scheme vested on 31 December 2019. The scheme consisted of restricted shares granted to all qualifying employees. The beneficial ownership of the shares resided with the participants, including the voting and dividend rights. No dealing in the shares was permitted before 31 December 2019. Forfeiture was applicable if employee was dismissed. 37.2 Equity compensation plans The company has two equity compensation plans, namely the company Share Incentive Scheme (GSIS) and the Equity Growth Scheme (EGS). The GSIS, which is equity-settled, confers rights to employees to acquire ordinary shares at the value of the SBG share price at the date the option is granted. The EGS, which is cash-settled, was implemented in 2005 and represents appreciation rights allocated to employees. The eventual value of the right is effectively settled by the issue of shares equivalent in value to the value of the rights. The two schemes have five different sub-types of vesting categories as illustrated by the table below: Shares outstanding at beginning of the year Increase due to subdivision of shares Shares allocated during the year Forfeited Vested during the year Shares outstanding at the end of the year Vesting categories Year % vesting Expiry Type A 3,4,5 50, 75, 100 10 years Type B 5,6,7 50, 75, 100 10 years Type C 2,3,4 50, 75, 100 10 years Type D 2,3,4 33, 67, 100 10 years Type E 3,4,5 33, 67, 100 10 years 37.2.1 Equity-settled share-based payments GSIS A reconciliation of the movement of share options is detailed below: Option price range (N$) Number of rights 2020 2019 2020 2019 Options outstanding at beginning of the year 6 250 32 200 Exercised 62.39 98.80 Lapsed (17 200) (12 500) 3 750 Transferred in Options outstanding at the end of the year 6 250 6 250 No options were exercised during the year. The weighted average share price for the year was ZAR116.16 (2019: ZAR183.51). 1 75 Option price range (N$) 2020 2019 Number of rights 2020 2019 5 092 780 25 463 900 29.84 4 078 308 (19 210) (34 615 778)
View entire presentation