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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
OPERATING
PERFORMANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
215
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
31.
EQUITY COMPENSATION BENEFIT (continued)
Forfeitable shares (continued)
Refer to note 18 for the expense recognised in the statement of comprehensive income relating to the equity
compensation benefits.
The fair value of the shares is based on the value paid for the shares on the open market at grant date.
The total number of forfeitable shares issued to executive directors during the period is 1 010 060
(2013: 1 096 759).
The share-based payment expense in relation to these executive directors is R5.6 million (2013: R6.3 million).
Refer to note 29 for details per director.
32.
COMMITMENTS
Future operating lease commitments
The Group leases various offices under non-cancellable operating lease agreements.
The lease terms are between one and 10 years, and the majority of lease agreements are renewable at the
end of the lease period at market rates.
The Group also leases various equipment under cancellable operating lease agreements.
The Group is required to give six months’ notice for the termination of the majority of these agreements.
The lease expenditure charged to the statement of comprehensive income during the year is disclosed in
note 19.
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
2014
R’000
2013
R’000
Premises
Payable within one year
29 434
27 288
Payable in two to five years
53 526
70 012
Payable in greater than five years
348
4 489
Equipment
Payable within one year
416
1 424
Payable in two to five years
342
376
Payable in greater than five years
—
—
84 066
103 589