SBN HOLDINGS LIMITED Annual Report 2022
114
NOTES TO THE ANNUAL FINANCIAL STATEMENTS continued
SBN HOLDINGS LIMITED
Annual report 2022
115
36.
36.3
Equity-linked transactions continued
Cash compensation plans
36.3.1
Cash-settled share-based payments
All employees granted an annual performance award over a threshold and who is in employment in a company entity domicile
outside of South Africa have part of their award deferred. In addition the company makes special awards to qualifying
employees in employment of a company entity. The awards are classified as cash-settled awards.
The award units are denominated in employee's host countries' local currency, the value of which moves parallel to the
changes in the price of the SBG shares listed on the JSE and accrue notional dividends over the vesting period which are
payable on vesting.
Awards vest in three equal tranches at 18 months, 30 months and 42 months from the date of award. Final payout is
determined with reference to SBG share price on vesting date.
36.
36.4
Equity-linked transactions continued
Performance reward plan
The performance reward plan (PRP) is performance-driven share plan which rewards value delivered against specific targets.
The PRP incentivises a group of senior executives to meet the strategic long-term objectives that deliver value to shareholders,
to align the interests of those executives with those of shareholders and to act as an attraction and retention mechanism in a
highly competitive marketplace for skills. The PRP operates alongside the existing conditional, equity-settled long-term plans,
namely the EGS, DBS, and other share incentive schemes.
The awards are indexed to SBG's share price and accrues notional dividends during the vesting period, which are payable on
vesting. Shares that vest (if any), and that are delivered to the employee, are conditional on the pre-specified performance
metrics. These awards have been partially hedged through the use of equity forwards.
Awards are issued to individuals in employment of a group entity domiciled outside of South Africa are classified as cash-
settled.
2022 units
Weighted
average
fair
value at
Expected
life at
grant date
Transferred
Currency
grant date
(years)
Opening
balance
between
group
Granted
Exercised
Forfeited
companies Outstanding
NAD
143.65
2.51
48 869
18 966
XOF
ZAR
4 359
(30 779)
(59 576)
(1 241)
37 056
142 400
82 824
3 118
2021 units
Weighted
average
fair
value at
Expected
life at
grant date
Transferred
Currency
grant date
(years)
Opening
balance
Granted
Exercised Forfeited
between
group
companies
Outstanding
NAD
143.77
ZAR
152.64
2.51
2.51
41 687
14 647
4 348
(8144)
(689)
679
700
48 869
4 359
36.3.2 Deferred bonus scheme (DBS)
It is essential for the group to retain key skills over the longer term. This is done particularly through share-based incentive
plans. The purpose of these plans is to align the interests of the group, its subsidiaries and employees, as well as to attract and
retain skilled, competent people.
The group has implemented a scheme to defer a portion of incentive bonuses over a minimum threshold for key management
and executives. This improves the alignment of shareholder and management interests by creating a closer linkage between
risk and reward, and also facilitates retention of key employees.
The purpose of the Deferred Bonus Scheme 2012 is to encourage a longer-term outlook in business decision making and
closer alignment of performance with long-term value creation.
All employees granted an annual performance award over a threshold have part of their award deferred. The award is indexed
to the group's share price and accrues notional dividends during the vesting year, which are payable on vesting. The awards
vest in three equal amounts at 18 months, 30 months and 42 months from the date of award. The final payout is determined
with reference to the group's share price on vesting date.
Reconciliation
Units outstanding at beginning of the year
Awarded
Exercised
Transfers
Units outstanding at end of the year
Weighted average fair value at grant date
Expected life (years)
Units
2022
2021
5 683
(3 286)
(63)
63
2 397
N$143.65
2.51
Movement summary
Units outstanding at beginning of the year
Lapsed
Units outstanding at end of the year
Units
2022
2021
24 200
35 600
(11 000)
(11400)
13 200
24 200View entire presentation