2007 Annual Report - Sappi

Notes to the group annual financial statements continued
for the year ended September 2007
37. Directors’ remuneration continued
Executive directors (4) 2006
Prior
Benefit
year Contributions received
bonuses Sums paid under from
and paid pension Credit
performance by way of and Scheme
related expense medical aid Share
` Salary payments (9) allowance schemes Funding Other Total
US$
J L Job (6 & 10) 85,810 79,845 931 29,291 67,287 – 263,164
J C A Leslie (5 & 8) 2,623,998 827,830 52,959 2,189,838 287,707 – 5,982,332
W Pfarl 653,615 178,005 3,340 156,702 – – 991,662
D G Wilson (7) 243,916 57,925 6,271 82,575 – – 390,687
M R Thompson (11) 44,660 – 81 17,193 – – 61,934
E van As (12) – – – – – 1,463,520 1,463,520
3,651,999 1,143,605 63,582 2,475,599 354,994 1,463,520 9,153,299
(5) In terms of his contract with the company, Mr Leslie received Sappi Limited shares as a performance bonus, should the shareholder return on the shares in
Sappi Limited equal or exceed a comparator group of other international pulp and paper companies for each of the three year periods ending December 2003,
December 2004 and December 2005. Depending on the quantum by which the shareholder return exceeds the comparator group in each four year grouping,
Mr Leslie could receive up to 16,667 shares. At December 2004 he received 16,667 shares with a value of US$167,787. (December 2003: 16,667 shares
with a value of US$229,947).
The company has also guaranteed Mr Leslie a minimum annual pension subject to various conditions being met.
(6) He was appointed as a non-executive director in January 2006 and resigned in September 2006.
(7) Resigned as executive director in July 2006.
(8) The portion of remuneration which relates to termination was US$5,034,076. An amount of US$1,068,134 which is included in the ‘Contributions paid under
pension and medical aid schemes’ column above, will only be paid to Mr Leslie in 2008 if a certain level of gain on share scheme shares is not achieved.
(9) Bonuses and performance related payments are in respect of the previous year’s performance paid in the current year.
(10) In terms of his contract with the company, Dr Job received 12,000 restricted shares, which vest equally over a two year period ending December 2004 and
December 2005.
In 2005 he received the cash equivalent value of 6,000 shares of US$79,174.
(11) Appointed as executive director in August 2006.
(12) Includes board fees paid to Mr van As for the period April 2006 to September 2006 while acting chief executive officer of US$98,426 and the value of 100,000
shares accrued at market price on date awarded by the board, namely R90.15 per share (US$1,365,094). 50,000 shares were purchased for Mr van As on
29 September 2006 and the remaining 50,000 were purchased on 30 March 2007.
Details of directors’ service contracts
The executive directors have service contracts with notice periods of 2 years or less. These notice periods are in line with
international norms for executive directors.
The non-executive directors do not have service contracts with the company.
None of the directors have provisions for pre-determined compensation on termination of their contracts exceeding 2 years’
gross remuneration and benefits in kind.
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sappi limited | 07 | annual report