214 / 280
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
212
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
31.
EQUITY COMPENSATION BENEFIT
Forfeitable shares
During the year, 2 782 541 (2013: 3 496 103) forfeitable shares were granted to executive directors and qualifying
employees (participant). The participant will forfeit the forfeitable shares if he/she ceases to be an employee of an
employer company before the vesting date or if the specified performance conditions have not been met, unless
otherwise specified by the rules or determined by the Board. In the event that the participant is not in the employ of
the Group, or the performance conditions are not met, the shares allocated to the participant will be forfeited and
will either be sold on the open market by the escrow agent and the proceeds will be returned to the participating
employer, or may be retained by the Group for future awards.
Dividends declared in respect of these forfeitable shares are held in escrow until such time as the
performance conditions are met and the shares have vested. Shares forfeited during the vesting period will
forfeit any dividends pertaining to such shares. A dividend of 25 cents (2013: 23 cents) per ordinary share
was declared on 18 August 2013 (2013: 20 August 2012).
The performance condition for the third award grant of forfeitable shares vested on 31 August 2013 was as
follows:
•
•
25% of the shares constituting the allocation were awarded for retention purposes and vested if the
employee was still employed within the Group at the vesting date (31 August 2013).
•
•
25% of the shares constituting the allocation vested on the achievement by individual employees of their
individual key performance indicators.
•
•
50% of shares constituting the allocation vested as the Group’s core HEPS were equal to or exceeded the core
HEPS per ordinary share at the beginning of the performance period, 1 June 2010, by the percentage change in
the CPI over the performance period, plus 15%. There was no linear vesting to this portion of the allocation.
The performance condition for the fourth award grant of forfeitable shares vesting on 31 August 2014 is as
follows:
•
•
25% of the shares constituting the allocation are awarded for retention purposes and shall vest if the
employee is still employed within the Group at the vesting date (31 August 2014).
•
•
25% of the shares constituting the allocation will vest on the achievement by individual employees of
their individual key performance indicators.
•
•
50% of shares constituting the allocation will vest if the Group’s core HEPS are equal to or exceed the core HEPS
per ordinary share at the beginning of the performance period, 1 June 2011, by the percentage change in the
CPI over the performance period, plus 15%. There is no linear vesting to this portion of the allocation.