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SUN INTERNATIONAL ANNUAL REPORT ’10
Share options held by executive directors and the three highest paid employees in terms of their participation in the Sun International Limited
employee share incentive scheme as at 30 June 2010
130
Date of
grant
remuneration report continued
Exercise
price
R
Number
of options
held
30 June
2009
Options
exercised
during
year
ended
30 June
2010
Number
of options
held
30 June
2010
Lapse
date
Number
of options
vested
30 June
2010
Present
value of
existing
future
awards
R
DC Coutts-Trotter 01.08.2003 31.555 58 750 50 000 8 750 01.08.2013 8 750 445 769
12.09.2003 32.950 37 500 – 37 500 12.09.2013 37 500 1 858 125
25.11.2003 39.005 56 250 – 56 250 25.11.2013 56 250 2 446 594
01.09.2004 40.950 46 875 – 46 875 01.09.2014 46 875 1 947 656
30.06.2005 61.825 46 875 – 46 875 30.06.2015 46 875 969 141
246 250 50 000 196 250 196 250 7 667 285
RP Becker 30.06.2005 61.825 200 000 – 200 000 30.06.2015 200 000 4 135 000
Top 3 Employees Various 45.350 183 527 128 214 55 313 55 313 1 170 469
Total 629 777 178 214 451 563 451 563 12 972 754
Share plans
In line with latest practice and with the prior approval of shareholders, the
group adopted four share plans – an EGP, a CSP and a DBP in 2006 and
a RSP in 2008. These share plans support the principle of alignment of
management and shareholder interests, with performance conditions
and/or periods governing the vesting of the plan instruments.
Executive directors and selected senior employees participate in certain or
all of the share plans. Awards under the EGP, CSP and DBP have been made
annually since 30 June 2006, and under the RSP, during 2008 and 2009.
There has been no change proposed or implemented regarding the share
plans in the year under review although changes are proposed for the
forthcoming year in terms of alignment with Schedule 14 of the JSE Listings
Requirements. Each of the share plans are explained below.
Equity Growth Plan (EGP)
The purpose of the EGP is to provide senior executives with the
opportunity to acquire shares in the company through the grant of
conditional EGP rights. These rights to receive shares equal in value to
the appreciation of the company’s share between the date on which
the conditional EGP rights are granted and the date on which they are
exercised, subject to the fulfilment of pre-determined performance
conditions over a three-year performance period. These performance
conditions are determined by the remuneration committee in respect of
each annual grant. Grants under this plan have been awarded annually,
and the performance conditions applied in each year were that adjusted
headline earnings per share should increase by 2% per annum above
CPI over the three year performance period, calculated from the date of
each grant.
The performance condition is tested three years from the date of grant
and if the condition is met, 100% of the EGP rights granted under the
specific grant become exercisable anytime within a 7 year period. In
accordance with the scheme rules, if this performance condition is not
met, re-testing of the performance condition is permitted on the fourth
and fifth anniversaries of the date of grant at a further increase of 2% per
annum above CPI. Should re-testing fail at this point, all EGPs granted
under the particular grant will lapse.
The performance condition relating to the EGP grant made in 2006 was
tested in 2009 and the performance condition was met.
The performance condition relating to the EGP grant made in 2007 was
tested in 2010 and, as the performance condition was not met, it will be
re-tested in 2011.
Conditional Share Plan (CSP)
The purpose of the CSP is to provide senior executives with the opportunity
to acquire shares in the company, by way of conditional awards which are
subject to the fulfilment of pre-determined performance conditions on the
expiry of a three-year performance period. The performance conditions are
determined by the remuneration committee in respect of each annual grant.
The conditional shares will vest after the three-year performance period
if, and to the extent that, the performance conditions have been satisfied,
and provided the executive is still in the employment of the group.
The performance condition imposed with regard to the annual grants
related to the company’s TSR over a three year period, relative to the TSR
of constituents in the INDI 25 index and gambling/hotels sub-sectors of