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SUN INTERNATIONAL ANNUAL REPORT ’10
192
NOTES TO THE GROUP FINANCIAL STATEMENTS CONTINUED
for the year ended 30 June
34. SHARE INCENTIVE SCHEMES (continued)
Valuation of share incentive grants
The fair value of CSP and EGP options granted during the year was estimated using the binomial asset pricing model. For the DBP and
RSP the share grants are valued based on the ruling share price on the date of the grant. The table below sets out the valuation thereof
and the assumptions used to value the grants:
CSP EGP DBP RSP
2010
Weighted average grant price R84.12 R84.12 R91.49 R89.96
Weighted average 400-day volatility 30.0% 30.0% n/a n/a
Weighted average long term risk rate 7.1% 7.4% n/a n/a
Weighted average dividend yield 5.2% 5.2% n/a n/a
Valuation R14 million R15 million R5 million R1 million
2009
Weighted average grant price R77.25 R77.25 R89.81 R94.35
Weighted average 400-day volatility 37.0% 37.0% n/a n/a
Weighted average long term risk rate 8.2% 8.6% n/a n/a
Weighted average dividend yield 5.0% 5.0% n/a n/a
Valuation R12 million R17 million R6 million R79 million
The employee share based payment expense for the year was R37 million (2009: R28 million).
35. EMPLOYEE SHARE TRUSTS
These trusts have been consolidated in the group’s financial statements in terms of SIC 12 Consolidation – Special Purpose Entities. However,
the trust is controlled by its trustees. The majority of the trustees are representatives elected by and from the employees and are beneficiaries
of the trust. The company has no beneficial interest in and has no control over the trust. The group does not share in any economic benefits
of the trust.
Sun International Employee Share Trust
The Sun International Employee Share Trust was established to enable eligible employees to share in the success of the group through share
ownership. The share scheme excludes participants of any other group share incentive scheme. Eligible employees will benefit from income
and growth distributions made by the trust.
The trust is funded through interest free loans from the participating companies in the group. These loans have been fair valued and imputed
interest at 12% per annum is recognised over the expected loan period. Loans will be repaid through dividend flows and proceeds on the
disposal of the underlying investments held by the trust.
The economic interest held by the trust in group companies is set out below:
Afrisun Gauteng 3.5 3.5
Emfuleni Resorts 3.5 3.5
SunWest 3.3 3.5
Meropa 3.5 3.5
Teemane 3.5 3.5
Afrisun KZN 3.5 3.5
Mangaung Sun 3.5 3.5
Worcester 3.5 3.5
Sun International Limited – direct 2.6 2.6
– indirect 3.0 3.7
2010
%
2009
%