NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS l NOTE 40

 

40. directors' remuneration and interest in shares
40.1 Directors’ remuneration

The table below provides an analysis of the emoluments paid to executive and non-executive directors and prescribed officers of the company for the year ended 30 June 2014.

  Salary
R’000		 Bonus
R’000		 Retirement
and medical
contributions
R’000		 Other benefits
(Note 1)
R’000		 Directors’ fees
R’000		 Subsidiary/Associate
and Sub-committee
fees
R’000		   2014
Total
R’000		     2013
Total
R’000		 Expected value
of Long Term
Incentive awards
made in 2014
R’000		 Expected value
of Long Term
Incentive awards
made in 2013
R’000		  
Total     Total (Note 2) (Note 2)  
Non-executive directors                            
SL Botha (Resigned)         34 24   58     321      
HR Brody (Note 3) 5 357 7 457 857 1 130 71 75   14 947     12 045   4 814  
ST Dingaan (Note 4)         212 527   739     637      
S Engelbrecht         212 180   392     316      
TS Gcabashe         954 180   1 134     800      
RL Hiemstra         212 180   392     226      
P Langeni         212 254   466     417      
M J Leeming         212 663   875     740      
V Moosa         212 225   437     372      
RJA Sparks         212 644   856     695      
A Tugendhaft         583 180   763     535      
Y Waja         212 716   928     820      
Total 5 357 7 457 857 1 130 3 338 3 848   21 987     17 924      
Executive directors                            
M Lamberti                       10 329    
M Akoojee 2 412 2 310 400 120       5 242       3 600 1 811  
OS Arbee 4 569 4 200 746 399       9 914     8 785 6 000 3 531  
MP de Canha 4 473 3 400 611 159       8 643     9 800 5 500 3 322  
P B Michaux 3 130 2 800 530 276       6 736       4 700 2 475  
J J Strydom 3 315 2 650 297         6 262       4 100 2 203  
GW Riemann (Note 5) 6 756 13 511 1 689 1 572   407   23 935     20 912      
M Swanepoel 3 944 3 700 782 180       8 606     8 085 5 300 3 118  
Retired directors                     16 804      
Total 28 599 32 571 5 055 2 706   407   69 338     64 386 39 529 16 460  
Total all directors June 2014 33 956 40 028 5 912 3 836 3 338 4 255   91 325            
Total all directors June 2013 29 184 35 611 5 429 5 876 2 770 3 440         82 310   14 785  
1. Other benefits- these include the fringe benefit value of company cars and motor car allowances and long-term performance-based retention payments.
2. This represents the expected value of all long-term incentive awards made in the reporting year. The expected value is calculated using a Black Scholes valuation model.
3. HR Brody served as an executive director until 28 February 2014 and part of his reported remuneration relates to that period. Other benefits paid to him include payments relating to long-term incentive schemes.
4. Paid by Ukhamba Holdings in respect of its chairperson’s fees.
5. Overseas-based - GW Riemann is employed in Germany and his salary is paid in Euro, based on the market conditions in that country.
6. The Group had no prescribed officers as defined in terms of the Companies Act, 2008 for the financial year other than PB Michaux and JJ Strydom who were appointed as directors during the year and whose remuneration is disclosed as directors. Prescribed officers are persons, not being directors, who either alone or with others exercise executive control and management of the whole or a significant portion of the business of the company.
40.2 Incentive schemes

Executive directors participate in long-term incentive schemes, designed to recognise the contributions of senior employees to the growth in the company’s equity. Within limits imposed by shareholders, rights are allocated to directors and senior employees. The equity-linked compensation benefits for executive directors are set out below.

Participation in the share appreciation rights scheme

Directors

  Commencement
date		 Price on
commencement
date (R)		 Number
of rights*		 Number
of rights
exercised		 Number
of rights
forfeited		 Number
of rights
remaining		 Vesting
date		  
M Akoojee 2 June 2010 96,71 22 428 22 076 352      
  14 June 2011 116,59 11 628     11 628 15 September 2014  
  13 June 2012 170,57 24 016     24 016 26 August 2015  
  11 June 2013 195,20 38 154     38 154 15 September 2016  
OS Arbee 2 June 2010 96,71 56 333   1 031 55 302 15 September 2013  
  14 June 2011 116,59 23 377     23 377 15 September 2014  
  13 June 2012 170,57 44 743     44 743 26 August 2015  
  11 June 2013 195,20 77 582     77 582 15 September 2016  
HR Brody** 2 June 2010 96,71 92 540 90 847 1 693   15 September 2013  
  14 June 2011 116,59 35 750   10 674 25 076 15 September 2014  
  13 June 2012 170,57 66 936   34 857 32 079 26 August 2015  
  11 June 2013 195,20 101 869   77 090 24 779 15 September 2016  
MP de Canha 2 June 2010 96,71 60 275 59 172 1 103   15 September 2013  
  14 June 2011 116,59 25 011     25 011 15 September 2014  
  13 June 2012 170,57 47 876     47 876 26 August 2015  
  11 June 2013 195,20 68 215     68 215 15 September 2016  
M Swanepoel 2 June 2010 96,71 53 323 52 347 976   15 September 2013  
  14 June 2011 116,59 23 377     23 377 15 September 2014  
  13 June 2012 170,57 44 743     44 743 26 August 2015  
  11 June 2013 195,20 68 641     68 641 15 September 2016  
RL Hiemstra** 2 June 2010 96,71 55 276     55 276 15 September 2013  
  14 June 2011 116,59 23 377     23 377 7 September 2014  
PB Michaux 2 June 2010 96,71 30 750 30 187 563   15 September 2013  
  14 June 2011 116,59 12 200     12 200 15 September 2014  
  13 June 2012 170,57 31 241     31 241 26 August 2015  
  11 June 2013 195,20 51 092     51 092 15 September 2016  
JJ Strydom 2 June 2010 96,71 25 264 24 802 462   15 September 2013  
  14 June 2011 116,59 9 384     9 384 15 September 2014  
  13 June 2012 170,57 29 342     29 342 26 August 2015  
  11 June 2013 195,20 48 263     48 263 15 September 2016  
* The number of rights that will eventually vest is subject to the achievement of performance conditions linked to core EPS targets relative to a peer group of 20 JSE listed companies and return on invested capital (ROIC) targets relative to weighted cost of capital. The rights vested could be fewer than the number granted.
** Received allocations before retirement as an executive director.

Participation in the deferred bonus plan

Executive directors

  Allocation
date		 Number
of rights
allocated		 Number of
shares
committed
to the plan+		 Balance
available to
be taken up		 Vested
during
the year		 Balance
remaining		 Vesting
date		  
MJ Lamberti 1 March 2014 60 787 60 787       15 September 2017  
M Akoojee 18 June 2010 10 000 2 973   2 973   15 September 2013  
      3 376     3 376 7 September 2014  
      2 445     2 445 26 August 2015  
  14 June 2011 5 805 5 805     5 805 7 September 2014  
  13 June 2012 4 854 4 854     4 854 26 August 2015  
  13 June 2013 3 266 3 266     3 266 15 September 2016  
  30 June 2014 18 579   18 579     15 September 2017  
OS Arbee 5 June 2008   7 758   7 758   15 September 2013  
  2 June 2010 6 961 6 961   6 961   15 September 2013  
  14 June 2011 10 406 10 406     10 406 7 September 2014  
  13 June 2012 9 044 6 727     6 727 26 August 2015  
  11 June 2013 5 872 5 872     5 872 15 September 2016  
  30 June 2014 30 965   30 965     15 September 2017  
MP de Canha 5 June 2008   11 926   11 926   15 September 2013  
  2 June 2010 7 448 7 448   7 448   15 September 2013  
  14 June 2011 12 486 10 712     10 712 7 September 2014  
  13 June 2012 9 677 8 064     8 064 26 August 2015  
  11 June 2013 6 276 6 276     6 276 15 September 2016  
  30 June 2014 28 384   28 384     15 September 2017  
M Swanepoel 5 June 2008   3 323   3 323   15 September 2013  
  2 June 2010 6 589 6 589   6 589   15 September 2013  
  14 June 2011 9 641 9 641     9 641 7 September 2014  
  13 June 2012 6 156 6 156     6 156 26 August 2015  
  11 June 2013 5 164 5 164     5 164 15 September 2016  
  30 June 2014 27 352   27 352     15 September 2017  
P B Michaux 5 June 2008   8 231   8 231   15 September 2013  
  2 June 2010 3 167 3 167   3 167   15 September 2013  
  14 June 2011 5 251 5 251     5 251 7 September 2014  
  13 June 2012 4 793 4 793     4 793 26 August 2015  
  11 June 2013 4 634 4 634     4 634 15 September 2016  
  30 June 2014 24 256   24 256     15 September 2017  
JJ Strydom 5 June 2008 1 364 1 364   1 364   15 September 2013  
  2 June 2010 2 602 2 602   2 602   15 September 2013  
  14 June 2011 4 039 4 039     4 039 7 September 2014  
  13 June 2012 3 957 3 957     3 957 26 August 2015  
  11 June 2013 3 689 3 689     3 689 15 September 2016  
  30 June 2014 21 159   21 159     15 September 2017  

Non-Executive directors**

  Allocation
date		 Number
of rights
allocated		 Number of
shares
committed
to the plan+		 Balance
available to
be taken up		 Vested
during
the year		 Balance
remaining		 Vesting
date		  
HR Brody 5 June 2008   9 966   9 966   15 September 2013  
  2 June 2010 9 858 9 858   9 858   15 September 2013  
  14 June 2011 12 089 12 089   12 089   30 April 2014  
  13 June 2012 12 798 8 178   8 178   30 April 2014  
  11 June 2013 7 449     7 449   30 April 2014  
RL Hiemstra 5 June 2008   8 902   8 902   15 September 2013  
  2 June 2010 6 958 6 958   6 958   15 September 2013  
  14 June 2011 10 406 10 406     10 406 7 September 2014  
** Received allocations before retirement as an executive director
+ The number of shares committed to the plan is dependent on the amount of after-tax bonus committed by each executive and the share price prevailing when bonus shares are acquired.
40.3 Gains by directors on DBP and SAR exercised during the year

Directors 2014
R’000		     2013
R’000		  
HR Brody# 18 894     26 037  
OS Arbee 3 218     15 791  
M Akoojee 3 357     6 674  
MP de Canha 11 384     16 522  
M Swanepoel 8 721     14 468  
PB Michaux 6 158     8 047  
JJ Strydom 3 884     10 256  
# Non-executive from 1 March 2014
40.4 Directors’ interests in shares

  2014     2013  
  Beneficial Non-beneficial     Beneficial Non-beneficial  
Non-executive              
HR Brody 36 682       91 709    
RL Hiemstra 10 406       33 820    
MJ Leeming   6 928*       4 928*  
RJA Sparks 40 000 20 000*     40 000    
Y Waja 3 000       927    
  90 088 26 928     166 456 4 928  
Executive              
M Akoojee 25 692       74 842    
OS Arbee 56 477       74 842    
MP de Canha 1 686 289*       1 627 775    
MJ Lamberti 450 000*            
M Swanepoel 20 961       26 160    
P Michaux 38 058       26 442    
JJ Strydom 54 442       43 776    
  2 331 919       1 798 995    
Total 2 422 007 26 928     1 965 451 4 928  
* Indirect holding