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
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