Agribel Annual Financial Review | Page 46

AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
15.2.3 Share-based payment reserve
GROUP
2021 R ' m
2020 R ' m
Balance at the beginning of the year
39
23
( Decrease )/ increase in reserve for the year
( 5 )
16
Balance at the end of the year
34
39
16 . EMPLOYEE BENEFITS 16.1 Incentive bonuses
Balance at the beginning of the year Increase in provision during the year ( Over )/ Under provision previous year
GROUP 2021
2020
R ' m
R ' m
24
26
126 24 ( 1 ) ( 1 )
Utilised during the year
( 23 )
( 25 )
Balance at the end of the year
126
24
The group has a short-term incentive scheme for employees and an equity-settled share-based payment scheme for senior management . It is aligned with the objectives and remuneration philosophy of the group in that a portion of the remuneration is subject to risk . Provisions are created in accordance with the rules of the schemes .
16.1.1 Short-term incentive scheme
The short-term incentive scheme is paid each year to qualifying employees . The calculation is based on the performance of the group , the division in which the employee is employed as well as an individual evaluation of the performance of the employee .
16.2 Equity-settled share-based payment scheme
Senwes grants shares to its senior management . These shares are acquired and held in a trust for the last three years of the vesting period . The scheme is a forfeitable share award scheme , where shares are forfeited if future service and performance conditions are not met .
The fair value of the shares granted are determined by using the market value of the shares on grant date adjusted with the present value of dividends not entitled to . The grant date is the date on which the entity and the participant agree to a share-based payment arrangement .
The total group expense recognised for the year amounts to R7 million ( 2020 : R17 million ). The accumulated group equity-settled reserve amounts to R36 million ( 2020 : R47 million ). Refer to the table below for more details :
GROUP
2021 R ' m
2020 R ' m
Opening balance
47
54
Vested during the year
( 18 )
( 24 )
Expense recognised
7
17
Initial shares granted
5
5
Increase in shares granted / new participants
6
13
Over-provision previous year
( 2 )
-
Forfeited during the year
( 2 )
( 1 )
Equity-settled share-based payment reserve
36
47
Tranche
Number of shares per tranche granted
Fair value price per share
Vesting date on grant date
1
Vested
-
-
30 June 2017
2
Vested
-
-
30 June 2018
3
Vested
-
-
30 June 2019
4
Vested
-
-
30 June 2020
5
1 683 852
8.53
30 June 2021
6
1 849 482
8.05
30 June 2022
7
1 963 189
11.05
30 June 2023
Total
5 496 523
The first four tranches vested on 30 June 2017 , 2018 , 2019 and 2020 . The performance conditions were not fully met and therefore only 30 %, 51 %,
90 % and 100 % of these shares vested for employees still in service on date of vesting .
The next vesting will take place on 30 June 2021 , subject to performance and other conditions being met .
44 AGRIBEL ANNUAL FINANCIAL REVIEW 2021 Agribel Holdings Limited Reg nr : 1996 / 017629 / 06