246 / 280
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
244
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
11.
EQUITY COMPENSATION BENEFIT
Forfeitable shares
During the year, 1 140 180 (2013: 1 451 573) 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 is 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 are equal to or exceed 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 was
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.