Download the PDF (5.4 MB) - Nedbank Group Limited

More documents

Recommendations

Info

400 NEDBANK GROUP Limited INTEGRATED REPORT 201010 SHARE-BASED PAYMENTSEquity instruments are granted to business partners and non-executive directors as an incentive to retain business and develop growth within thegroup. The share-based payments expenses and reserve balances in respect of the Black Business Partner Scheme and the Non-executive Directors’Scheme, implemented in 2005, were accounted for in the Nedbank Group Limited consolidated financial statements and in the Nedbank GroupLimited standalone financial statements. Both of these schemes will be equity-settled.As the company cannot estimate reliably the fair value of services received nor the value of additional business received, the company rebuts thepresumption that such services and business can be measured reliably. The company therefore measures their fair value by reference to the fairvalue of the equity instruments granted, in line with the group’s accounting policy. The fair value of such equity instruments is measured at thegrant date utilising the Black-Scholes valuation model.10.1 Description of arrangementsScheme Trust/SPV Description Vesting requirements Maximum termNedbank Eyethu BEE schemesBlack BusinessPartner SchemeWiphold Financial ServicesNumber Two Trust andBrimstone-Mtha FinancialServices TrustEach trust was issued an equalnumber of restricted shares atR1,87 per share, with notionalfunding over a period of10 years. The beneficialownership of the shares resideswith the participants, includingthe voting and dividend rights.No dealing in the shares during the10-year notional funding period.10 yearsNon-executiveDirectors’ Scheme*Nedbank Eyethu NonexecutiveDirectors’ TrustCertain non-executive directorsacquired restricted sharesat par value, with notionalfunding over a period of sixyears. The beneficial ownershipof the shares resides with theparticipants, including the votingand dividend rights.Six years’ service and no dealingin the shares during this notionalfunding period. So as not tocompromise the non-executivedirectors’ independence, no specificperformance conditions will applyto the directors’ participation.6 years* See page 223 of the Directors’ Report for information on events after the reporting period relating to this scheme.10.2 Effect on profit and financial positionShare-basedpayments expense2010Rm2009RmShare-basedpayments reserveBlack Business Partner Scheme 215 215Non-executive Directors’ Scheme 2 22 22– 2 237 2372010Rm2009Rm
401Reports andcertificationsConsolidatedannual financialstatementsShareholdermeeting mattersDefinitions andabbreviationsInstrumentcodesContactdetailsnotes to the company financial statements for the year ended 31 December 201010.3 Movements in number of instrumentsBlack Business Partner SchemeNumber ofinstruments2010 2009Weightedaverageexercise priceRNumber ofinstrumentsWeightedaverageexercise priceROutstanding at the beginning of the year 7 891 300 171,82 7 891 300 171,82Outstanding at the end of the year 7 891 300 171,82 7 891 300 171,82Exercisable at the end of the year – – – –Non-executive Directors’ SchemeOutstanding at the beginning of the year 621 743 104,04 575 021 103,88Granted 46 722 105,99Outstanding at the end of the year 621 743 104,04 621 743 104,04Exercisable at the end of the year – – – –10.4 Instruments outstanding at the end of the year by exercise priceBlack Business Partner SchemeNumber ofinstruments2010 2009Weightedaverageremainingcontractuallife (years)Number ofinstrumentsWeightedaverageremainingcontractuallife (years)171,82 7 891 300 4,6 7 891 300 5,6Non-executive Directors’ Scheme7 891 300 4,6 7 891 300 5,678,81 81 815 0,6 81 815 1,6105,99 46 722 0,6 46 722 1,6108,04 493 206 0,6 493 206 1,610.5 Instruments granted during the year621 743 0,6 621 743 1,6The weighted average fair value of instruments granted during the year has been calculated using the Black-Scholes option pricing model, usingthe following inputs and assumptions:Non-executive Directors’ Scheme 2010 2009Number of instruments granted 46 722Weighted average fair value per instrument granted (R) 8,22Weighted average share price (R) 70,00Weighted average exercise price (R) 105,99Weighted average expected volatility (%) 52,0Weighted average life (years) 1,2Weighted average expected dividends (%) 0,0Weighted average risk-free interest rate (%) 7,7Number of participants 1Weighted average vesting period (years)Possibility of not vesting (%) 0,0Expectation of meeting performance criteria (%) 100
Page 2:
Dear shareholders and other stakeho
Page 5 and 6:
215Reports andcertificationsConsoli
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47:
Page 52 and 53:
262 NEDBANK GROUP Limited INTEGRATE
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141: 350 NEDBANK GROUP Limited INTEGRATE
Page 196: 406 NEDBANK GROUP Limited INTEGRATE
show all

Download the PDF (5.4 MB) - Nedbank Group Limited

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?