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Performance conditions
The accrual of each award is subject to the fulfilment of the conditions as illustrated below:
Performance of the scheme
A summary of the allocation is as follows:
Condition achieved
Grant date
Vesting date
Adjusted free cash flow Total shareholder return
29/06/11
31/12/13
0%
32,5%
29/12/11
29/06/14
39,4%
0%
28/12/12
28/12/15
0%
0%
20/12/13
19/12/16
0%
0%
19/12/14
18/12/17
–
–
29/06/16^
29/12/18
–
–
28/12/16
28/12/19
–
–
^ This allocation was in respect of December 2015 and had been deferred as the Company was trading under cautionary.
Please refer to
AFS
for additional information.
Employee Share Ownership (ESOP)
During 2010, MTN approved the allocation of shares to its lower-level employees under the Company’s Broad-
Based Employee Share Scheme – Employee Share Ownership Plan (ESOP).
The scheme was intended to incentivise the designated employees and to identify them more closely with the
activities of the Company with the aim of promoting their continued growth by giving them shares. Participating
employees under the ESOP scheme had to retain ownership of their shares for a period of five years until
December 2015, when the scheme matured. As the Company was trading under a cautionary at this time,
only inactive participants had the right to trade in these shares. Active employees were restricted until such a
time when the restriction was lifted.
A summary of the allocation is as follows:
Number of
participants as at
issue date
Number of
shares allocated Plan vesting date
Number of
shares traded
(as at
31 December 2016)
Number of shares
outstanding
(as at
31 December 2016)
3 461
1 384 400
1 December 2015
691 772
556 133
As at 31 December 2016, from a total of 3 461 participants:
•
1 588 allocated employees had left the employment of the Company for various reasons, voluntary and
involuntary; and
•
1 873 were still in the employ of the Company.
Thus the number of retained employees represents a retention rate of 54%.
•
Investec continued as the Company’s preferred trading partner for employees who opted to trade their
shares.
•
All share records will be held and administered internally by the Group company secretary department.
•
Unexercised shares will remain in the Company’s records until such time that participants exercise them.
MTN Group Limited
Integrated Report 2016
81
GOVERNANCE,
PEOPLE AND
REMUNERATION