2. Payments, accruals and awards to executive directors
The Board is wholly responsible for the formulation, development and effective implementation of Group strategy. In turn, the Board delegates operational strategy implementation and general executive management of the business to its executive directors. As such, in terms of section 38 of the Companies Act 2008, the executive directors of the Board are identified as prescribed officers, and their remuneration is detailed below.
Total remuneration of executive directors
|
Fixed base salary and benefits |
Short- term annual bonus R’000 |
% of total remune- ration R’000 |
Total remune- ration R’000 |
Long- term share awards expense* R’000 |
||||||
| Fees for |
Base |
Retire- |
Other |
Total |
% of |
|||||
|
2015 |
||||||||||
|
Richard Brasher |
1.5 |
7 370.5 |
1 215.5 |
1 144.7 |
9 732.2 |
52.0 |
9 000.0 |
48.0 |
18 732.2 |
11 771.2 |
|
Richard van Rensburg |
1.5 |
3 422.5 |
622.0 |
735.1 |
4 781.1 |
74.9 |
1 600.0 |
25.1 |
6 381.1 |
3 745.6 |
|
Bakar Jakoet |
1.5 |
2 904.0 |
497.5 |
292.3 |
3 695.3 |
69.8 |
1 600.0 |
30.2 |
5 295.3 |
3 125.8 |
|
Jonathan Ackerman |
1.5 |
2 046.6 |
374.4 |
264.0 |
2 686.5 |
72.9 |
1 000.0 |
27.1 |
3 686.5 |
1 753.0 |
|
Suzanne Ackerman-Berman |
1.5 |
2 083.5 |
351.5 |
263.0 |
2 699.5 |
73.0 |
1 000.0 |
27.0 |
3 699.5 |
1 753.0 |
|
Total |
7.5 |
17 827.1 |
3 060.9 |
2 699.1 |
23 594.6 |
14 200.0 |
37 794.6 |
22 148.6 |
||
|
% increase on prior year |
6.9 |
5.6 |
||||||||
|
2014 |
||||||||||
|
Richard Brasher |
1.5 |
7 000.0 |
948.5 |
1 969.4 |
9 919.4 |
65.4 |
5 250.0 |
34.6 |
15 169.4 |
3 973.3 |
|
Richard van Rensburg |
1.5 |
3 229.3 |
559.7 |
261.7 |
4 052.2 |
83.5 |
800.0 |
16.5 |
4 852.2 |
1 603.3 |
|
Bakar Jakoet |
1.5 |
2 670.0 |
468.4 |
243.7 |
3 383.6 |
80.9 |
800.0 |
19.1 |
4 183.6 |
1 851.4 |
|
Jonathan Ackerman |
1.5 |
1 947.0 |
357.5 |
261.4 |
2 567.4 |
83.7 |
500.0 |
16.3 |
3 067.4 |
516.5 |
|
Suzanne Ackerman-Berman |
1.5 |
1 827.3 |
343.5 |
256.0 |
2 428.3 |
82.9 |
500.0 |
17.1 |
2 928.3 |
605.9 |
|
Total |
7.5 |
16 673.6 |
2 677.6 |
2 992.2 |
22 350.9 |
7 850.0 |
30 200.9 |
8 550.4 |
||
|
* The expense of the long-term share awards is determined in accordance with IFRS 2: Share-based Payments. The payment cost is the value of the share-based payment award amortised on a straight-line basis over the vesting term of the award. The amounts in the column represent the current year’s charge, as recorded in the statement of comprehensive income. The column is for information only, given that the value was neither received by nor accrued to the directors during the period. The long-term share awards will vest in the future only if all the criteria set out in the rules of the 1997 Employee Share Option Scheme and the Forfeitable Share Plan are met. |
||||||||||
The cost of the long-term incentive share awards is the IFRS 2 share-based payment cost related to the forfeitable shares and share options issued to executive directors. The cost is recognised on a straight-line basis over the term of the awards, and this cost therefore relates to all awards which have not yet reached the end of their vesting term – both those issued in prior years and in the current year. The cost of awards issued to executive directors recognised in the current year is R15.6 million.
The remuneration committee does not currently target an optimum level of fixed versus variable remuneration, although the scope and breadth of the strategic role performed by each executive director is considered when allocating long-term incentive share awards. The remuneration committee is in the process of developing formal guidelines in this regard.
As detailed above, total fixed benefits include payments made and costs accrued in the current year, and variable incentives include the related cost of share awards issued in current and prior periods.
Share awards granted to executive directors – PIK
|
Calendar year granted |
Award grant price R |
Balance held at 3 March 2014 |
Granted during the period |
Forfeited during the period |
Balance held at 1 March 2015 |
Available for take-up |
|||||||||
|
Richard Brasher |
|||||||||||||||
|
Share options |
2012 |
42.24 |
1 000 000 |
— |
— |
1 000 000**** |
Nov 2017 |
||||||||
|
42.24 |
1 000 000 |
— |
— |
1 000 000* |
Nov 2017 |
||||||||||
|
Forfeitable shares |
2014 |
— |
— |
800 000 |
— |
800 000** |
Aug 2017 |
||||||||
|
2 000 000 |
800 000 |
— |
2 800 000 |
||||||||||||
|
Richard van Rensburg |
|||||||||||||||
|
Share options |
2011 |
36.55 |
400 000 |
— |
— |
400 000* |
May 2016 |
||||||||
|
Forfeitable shares |
2014 |
— |
— |
250 000 |
— |
250 000** |
Aug 2017 |
||||||||
|
400 000 |
250 000 |
— |
650 000 |
||||||||||||
|
Bakar Jakoet |
|||||||||||||||
|
Share options |
2003 |
12.00 |
250 000 |
— |
— |
250 000 |
Now |
||||||||
|
2007 |
31.15 |
5 779 |
— |
— |
5 779 |
Now |
|||||||||
|
2008 |
26.55 |
7 907 |
— |
— |
7 907 |
Now |
|||||||||
|
26.14 |
105 000 |
— |
— |
105 000 |
Now |
||||||||||
|
26.14 |
45 000 |
— |
— |
45 000 |
Aug 2015 |
||||||||||
|
2009 |
28.20 |
12 413 |
— |
— |
12 413 |
Now |
|||||||||
|
2010 |
42.28 |
1 799 |
— |
— |
1 799 |
Now |
|||||||||
|
41.23 |
500 000 |
— |
(500 000)*** |
— |
Forfeited |
||||||||||
|
2011 |
41.70 |
200 000 |
— |
— |
200 000 |
Now |
|||||||||
|
41.70 |
300 000 |
— |
— |
300 000 |
Apr 2016 |
||||||||||
|
Forfeitable shares |
2014 |
— |
— |
250 000 |
— |
250 000** |
Aug 2017 |
||||||||
|
1 427 898 |
250 000 |
(500 000) |
1 177 898 |
||||||||||||
|
|||||||||||||||
Share awards granted to executive directors – PIK (continued)
|
Calendar year granted |
Award grant price R |
Balance held at 3 March 2014 |
Granted during the period |
Forfeited during the period |
Balance held at 1 March 2015 |
Available for take-up |
|||||
|
Jonathan Ackerman |
|||||||||||
|
Share options |
2005 |
20.7 |
6 441 |
— |
— |
6 441 |
Now |
||||
|
2006 |
28.00 |
14 286 |
— |
— |
14 286 |
Now |
|||||
|
2007 |
31.15 |
14 446 |
— |
— |
14 446 |
Now |
|||||
|
2008 |
26.56 |
9 414 |
— |
— |
9 414 |
Now |
|||||
|
26.14 |
25 000 |
— |
— |
25 000 |
Aug 2015 |
||||||
|
26.14 |
25 000 |
— |
— |
25 000 |
Aug 2016 |
||||||
|
26.14 |
25 000 |
— |
— |
25 000 |
Aug 2017 |
||||||
|
26.14 |
25 000 |
— |
— |
25 000 |
Aug 2018 |
||||||
|
2009 |
28.20 |
8 667 |
— |
— |
8 667 |
Now |
|||||
|
2010 |
42.27 |
1 560 |
— |
— |
1 560 |
Now |
|||||
|
41.23 |
400 000 |
— |
(400 000)** |
— |
Forfeited |
||||||
|
Forfeitable shares |
2014 |
— |
— |
150 000 |
— |
150 000* |
Aug 2017 |
||||
|
554 814 |
150 000 |
(400 000) |
304 814 |
||||||||
|
Suzanne Ackerman-Berman |
|||||||||||
|
Share options |
2004 |
21.00 |
10 000 |
— |
— |
10 000 |
Now |
||||
|
2007 |
31.15 |
122 408 |
— |
— |
122 408 |
Now |
|||||
|
2008 |
26.56 |
4 519 |
— |
— |
4 519 |
Now |
|||||
|
26.14 |
25 000 |
— |
— |
25 000 |
Aug 2015 |
||||||
|
26.14 |
25 000 |
— |
— |
25 000 |
Aug 2016 |
||||||
|
26.14 |
25 000 |
— |
— |
25 000 |
Aug 2017 |
||||||
|
26.14 |
25 000 |
— |
— |
25 000 |
Aug 2018 |
||||||
|
2009 |
28.20 |
8 867 |
— |
— |
8 867 |
Now |
|||||
|
2010 |
42.27 |
1 421 |
— |
— |
1 421 |
Now |
|||||
|
41.23 |
400 000 |
— |
(400 000)** |
— |
Forfeited |
||||||
|
Forfeitable shares |
2014 |
— |
— |
150 000 |
— |
150 000* |
Aug 2017 |
||||
|
647 215 |
150 000 |
(400 000) |
397 215 |
||||||||
|
|||||||||||
Share awards granted to executive directors – PWK
|
Calendar year granted |
Award grant price R |
Balance held at 3 March 2014 |
Granted during the period |
Balance held at 1 March 2015 |
Available for take-up |
|
|
Richard van Rensburg |
||||||
|
Share options |
2011 |
15.2 |
1 000 000 |
— |
1 000 000 |
Now |
|
1 000 000 |
— |
1 000 000 |
||||
|
Bakar Jakoet |
||||||
|
Share options |
2005 |
11.5 |
400 |
— |
400 |
Now |
|
2008 |
11.3 |
600 |
— |
600 |
Now |
|
|
2010 |
16.0 |
400 |
— |
400 |
Now |
|
|
2014 |
22.6 |
— |
400 |
400 |
Now |
|
|
1 400 |
400 |
1 800 |
||||
|
Jonathan Ackerman |
||||||
|
Share options |
2010 |
16.0 |
1 000 |
— |
1 000 |
Now |
|
2012 |
20.0 |
400 |
— |
400 |
Now |
|
|
1 400 |
— |
1 400 |
||||
|
Suzanne Ackerman-Berman |
||||||
|
Share options |
2011 |
15.4 |
400 |
— |
400 |
Now |
|
400 |
— |
400 |
3. Payments, accruals and awards to non-executive directors
|
Directors’ fees R’000 |
Lead director R’000 |
Audit committee R’000 |
Remune- ration committee R’000 |
Nomina- tions committee R’000 |
Corporate finance committee R’000 |
Social and ethics committee R’000 |
Employee share trust R’000 |
Total R’000 |
|
|
2015 |
|||||||||
|
Gareth Ackerman^ |
3 450.0 |
— |
— |
— |
— |
— |
— |
— |
3 450.0 |
|
John Gildersleeve |
320.0 |
— |
— |
70.0 |
— |
— |
— |
— |
390.0 |
|
David Friedland** |
320.0 |
— |
— |
— |
65.0 |
— |
— |
— |
385.0 |
|
Hugh Herman |
320.0 |
107.0 |
107.0 |
140.0 |
— |
— |
— |
31.0 |
705.0 |
|
Audrey Mothupi |
320.0 |
— |
107.0 |
— |
— |
— |
— |
— |
427.0 |
|
Lorato Phalatse |
320.0 |
— |
— |
— |
65.0 |
— |
70.0 |
— |
455.0 |
|
David Robins |
320.0 |
— |
— |
— |
— |
— |
— |
— |
320.0 |
|
Ben van der Ross |
320.0 |
— |
107.0 |
70.0 |
65.0 |
— |
— |
31.0 |
593.0 |
|
Jeff van Rooyen |
320.0 |
— |
265.0 |
— |
— |
— |
— |
— |
585.0 |
|
6 010.0 |
107.0 |
586.0 |
280.0 |
195.0 |
— |
70.0 |
62.0 |
7 310.0 |
|
|
2014 |
|||||||||
|
Gareth Ackerman*^ |
3 450.0 |
— |
— |
— |
— |
— |
— |
— |
3 450.0 |
|
John Gildersleeve# |
107.7 |
— |
— |
— |
— |
— |
— |
— |
107.7 |
|
David Friedland@ |
64.1 |
— |
— |
— |
— |
— |
— |
— |
64.1 |
|
Hugh Herman |
300.0 |
100.0 |
100.0 |
130.0 |
— |
100.0 |
— |
29.0 |
759.0 |
|
Audrey Mothupi@ |
64.1 |
— |
— |
— |
— |
— |
— |
— |
64.1 |
|
Lorato Phalatse |
300.0 |
— |
— |
— |
30.0 |
100.0 |
65.0 |
— |
495.0 |
|
David Robins |
300.0 |
— |
— |
— |
— |
— |
— |
— |
300.0 |
|
Ben van der Ross |
300.0 |
— |
100.0 |
65.0 |
— |
100.0 |
— |
29.0 |
594.0 |
|
Jeff van Rooyen |
300.0 |
— |
250.0 |
— |
— |
150.0 |
— |
— |
700.0 |
|
5 185.9 |
100.0 |
450.0 |
195.0 |
30.0 |
450.0 |
65.0 |
58.0 |
6 533.9 |
| ^ | Gareth Ackerman is Chairman of the nominations committee, share trust and a member of the remuneration committee, but his annual fee incorporates all committee work. |
| * | Gareth Ackerman also received an amount of R169 600 to reimburse him for travel expenses personally incurred during 2014. |
| # | Appointed October 2013. |
| @ | Appointed December 2013 |
| ** | David Friedland received consultancy fees of R107 000 in the current period for services rendered to the audit and risk committee. |
4. Directors’ interest in shares – Pick n Pay Stores Limited
|
How held* |
Balance held 2014 |
Additions during the period |
Beneficial ownership on issue of forfeitable shares |
Average purchase price per share R |
Disposals and other move- ments during the period |
Average selling price per share R |
Balance held 2015 |
Beneficial/ non- beneficial interest |
|
|
2015 |
|||||||||
|
Gareth Ackerman |
direct |
43 |
— |
— |
— |
— |
— |
43 |
Beneficial |
|
indirect |
— |
30 000 |
— |
58.09 |
— |
— |
30 000 |
Non- beneficial |
|
|
indirect |
— |
71 900 |
— |
58.66 |
— |
— |
71 900 |
Non- beneficial |
|
|
Richard Brasher |
direct |
— |
— |
800 000 |
— |
— |
— |
800 000 |
Beneficial |
|
Richard van Rensburg |
direct |
— |
— |
250 000 |
— |
— |
— |
250 000 |
Beneficial |
|
Bakar Jakoet |
direct |
500 000 |
— |
250 000 |
— |
— |
— |
750 000 |
Beneficial |
|
indirect |
530 |
— |
— |
— |
— |
— |
530 |
Non- beneficial |
|
|
Jonathan Ackerman |
direct |
43 |
— |
150 000 |
— |
— |
— |
150 043 |
Beneficial |
|
Suzanne Ackerman-Berman |
direct |
2 500 |
— |
150 000 |
— |
— |
— |
152 500 |
Beneficial |
|
indirect |
4 651 |
— |
— |
— |
— |
— |
4 651 |
Beneficial |
|
|
indirect |
— |
30 000 |
— |
58.09 |
— |
— |
30 000 |
Non- beneficial |
|
|
indirect |
— |
71 900 |
— |
58.66 |
— |
— |
71 900 |
Non- beneficial |
|
|
Jeff van Rooyen |
direct |
— |
3 800 |
— |
59.00 |
— |
— |
3 800 |
Beneficial |
|
2014 |
|||||||||
|
Gareth Ackerman |
direct |
43 |
— |
— |
— |
— |
— |
43 |
Beneficial |
|
Bakar Jakoet |
direct |
500 000 |
— |
— |
— |
— |
— |
500 000 |
Beneficial |
|
indirect |
530 |
— |
— |
— |
— |
— |
530 |
Non- beneficial |
|
|
Jonathan Ackerman |
direct |
43 |
— |
— |
— |
— |
— |
43 |
Beneficial |
|
Suzanne Ackerman-Berman |
direct |
2 500 |
— |
— |
— |
— |
— |
2 500 |
Beneficial |
|
indirect |
4 651 |
— |
— |
— |
— |
— |
4 651 |
Beneficial |
| * | Direct interests represent a holding in the director’s personal capacity and indirect interests represent a holding by a family trust of which the director is a trustee, or a spouse and minor children. |
For directors’ interest in shares of Pick n Pay Holdings Limited RF, please refer to here.