95 / 108
Clawback and malus
Furthermore, the board approved the implementation of clawback and malus provisions effective for
the December 2017 allocation. Clawback and malus apply where material misstatements of financial
results or other calculation errors resulting in overpayment of incentives are recovered from the
employee, or corrected in the case of such errors. Thus the 2017 PSP allocations were made inclusive
of the clawback and malus provisions which will become enforceable upon approval by the MTN
shareholders at the annual general meeting.
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
29/06/16^
29/12/18
–
–
28/12/16
28/12/19
–
–
18/12/17^^
18/12/20
–
–
^ This allocation was in respect of December 2015 and had been deferred as the company was trading under cautionary.
^^ Allocation made under new revisions.
Employee share ownership plan (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.
During 2016, the board approved a second
allocation of shares to designated employees
under the 2016 MTN employee share ownership
plan (2016 ESOP). This scheme is managed
under trust. The first allocation of awards
was made to qualifying employees on
1 December 2017.
MTN Group Limited
Integrated Report 2017
93
Governance, people
and remuneration