Remuneration report

Long-term incentive liability – cash settled

The following table reflects the liability for long-term incentives and summarises details of the bonus units awarded to participants per financial year, the units vested at the end of the period and expiry dates of each allocation for the Tsogo Sun Share Appreciation Bonus Plan:

Tsogo Sun Share Appreciation Bonus Plan

  Appreciation units granted and still outstanding Strike   
price(1)
Appreciation units vested and still outstanding   Liability  
2014  
Liability  
2013  
Grant date   2014   2013   R    2014   2013   Expiry date   Rm  Rm  
1 April 2006   –   1 180 631   13.49    –   1 180 631   31 March 2014   –   53  
1 April 2007   307 452   362 709   19.87    307 452   362 709   31 March 2015   10   8  
1 April 2008   –   963 982   21.10    –   963 982   31 March 2014   –   17  
1 April 2009   922 643   1 239 512   15.10    922 643   1 239 512   31 March 2015   46   48  
1 April 2010   1 545 064   1 946 257   15.08    1 545 064   1 946 257   31 March 2016   77   76  
1 April 2011   4 731 076   5 627 490   15.06    4 731 076   –   31 March 2017   67   41  
1 October 2011   1 890 337   1 890 337   18.78    –   –   30 September 2017   15   7  
1 April 2012   7 726 516   8 400 352   17.66    –   –   31 March 2018   56   22  
1 October 2012   263 825   263 825   19.71    –   –   30 September 2018   1   –  
1 April 2013   8 401 905   –   24.56    –   –   31 March 2019   9   –  
1 October 2013   221 480   –   25.51    –   –   30 September 2019   –   –  
Liability at 31 March             281   272  
Gold Reef schemes (performance units and bonus units)  12   24  
Total long-term incentive liabilities as at 31 March   293   296  
Share price utilised to value the liability at 31 March   R27.00   R24.75  

(1) Grants prior to merger (24 February 2011) converted based on swap ratio of 3.553 Gold Reef shares for each TSH share  

Composition of total remuneration package – executive directors

The charts below provide an indication of the remuneration outcomes for executive directors showing potential total remuneration of maximum on target, and minimum performance levels.

The scenario charts assume:

  • Guaranteed package – fixed pay and benefits for the year ended 31 March 2014
  • Short-term incentives – based on scheme rules with maximum bonus paid at maximum performance and nil bonus below threshold performance
  • Long-term incentives – excluded from the charts as issued at market price and participants are rewarded through variable share price increases

Employment agreements

Mr JA Mabuza retired from his position as Chief Executive Officer on 30 September 2011. The group entered into a three-year restraint of trade contract that expires on 30 September 2014. In terms of this contract, Mr Mabuza is paid an amount of R8.5 million per annum, in quarterly instalments. In terms of the restraint, Mr Mabuza is prohibited from acting for, consulting to, or advising any other party in the hotel or gaming industry and makes himself available to the group for consultation and assistance where required. In addition, although no further long-term incentive allocations will be made, his existing allocations will vest over that period. There are no other contracts with senior executives with fixed durations.