REMUNERATION DISCLOSURES

The table below sets out for ease of reference, the relevant sections of the remuneration details of directors and officers including share schemes and interest in share capital.

Remuneration disclosure
Executive directors’ and officers’ remuneration
Non-executive directors’ remuneration
Declaration of full disclosure
Interest of directors of the company in share capital
Details of share schemes (including performance conditions)
Interest of directors of the company in share-based instruments
Non-binding advisory vote on the company’s remuneration policy
 
DIRECTORS’ AND PRESCRIBED OFFICERS’ EMOLUMENTS AND INTERESTS
             
Executive directors’ remuneration (R000)            
             
The executive directors’ remuneration for the year ended 31 March 2014 was as follows:
             
Name Cash
Package		 Cash
Bonus
*		 Retirement,
medical and
other benefits

#		 Total
             
B G Dunlop (to 31 August 2013) 1 681 979   2 799 # 5 459
M H Munro 3 966 2 478   585   7 029
P H Staude 7 651 5 991   1 060   14 702
  13 298 9 448   4 444   27 190
             
# Includes accrued leave and retirement gratuity.
 
 
The executive directors’ remuneration for the year ended 31 March 2013 was as follows:
             
Name Cash
Package		 Cash
Bonus
*		 Retirement
and medical
contributions		   Total
             
B G Dunlop 3 743 2 033   469   6 245
M H Munro 3 665 2 041   474   6 180
P H Staude 7 019 4 794   835   12 648
  14 427 8 868   1 778   25 073
             
The requirement to include prescribed officers is covered by the above executive directors, as they exercise effective management and control.
             
* Bonuses are reported to match the amount payable to the applicable financial period.
             
             
Executive directors’ share incentive gains:
        2014   2013
B G Dunlop (to 31 August 2013)       322   2 132
M H Munro       5 611   2 421
P H Staude       966   5 880
        6 899   10 433
             
Non-executive directors’ remuneration (R000)
                 
      12 months to 31 March 2014 12 months to 31 March 2013
                 
Name     Fees Other Total Fees Other Total
                 
F Jakoet     281 237 518 282 214 496
J John     305 299 604 258 277 535
R P Kupara     305 139 444 282 138 420
J B Magwaza     1 075 134 1 209 994 95 1 089
A A Maleiane     305   305 282   282
T N Mgoduso     280 103 383 255 95 350
N Mjoli-Mncube     305 324 629 282 286 568
S G Pretorius     305 221 526 282 103 385
C B Sibisi     305 103 408 282 95 377
Directors who retired/resigned during the year       95 112 207
      3 466 1 560 5 026 3 294 1 415 4 709
                 
In the above table, “Fees” relates to services as directors on the board and “Other” relates to fees paid for services as committee members.
                 
Declaration of full disclosure
Other than the remuneration disclosed in this note, which was paid by the company, no consideration was paid to, or by any third party, or by the company itself, in respect of services of the company’s directors, as directors of the company, during the year ended 31 March 2014.
               
Interest of directors of the company in share capital
The aggregate holdings as at 31 March 2014 of those directors of the company holding issued ordinary shares of the company are detailed below. Holdings are direct and beneficial except where indicated otherwise.
                 
Name             2014 2013
Executive directors:                
M H Munro             98 098 63 662
P H Staude             258 759 236 046
Director who retired during the year   70 223
              356 857 369 931
                 
Non-executive directors:                
F Jakoet             5 068 5 000
J B Magwaza             12 275 12 111
              17 343 17 111
               
EMPLOYEE SHARE INCENTIVE SCHEMES
 
The adoption of IFRS 2 Share-based Payment (IFRS 2) in 2005 required that all awards made after 7 November 2002 be accounted for in the financial statements of the company. IFRS 2 has therefore been applied to The Tongaat-Hulett Group Limited 2001 Share Option Scheme in respect of the awards made on 14 April 2003, 1 October 2003 and 21 April 2004 and to the Share Appreciation Right Scheme 2005 (SARS), the Long Term Incentive Plan 2005 (LTIP), the Deferred Bonus Plan 2005 (DBP) and the Long Term Incentive Plan introduced in 2010 for retention awards.
 
Details of awards in terms of the company’s share incentive schemes are as follows:
 
As a result of the unbundling of Hulamin, participants in these share schemes who had not exercised their rights at the unbundling date converted their existing Tongaat-Hulett Group Limited instruments into two components, a Tongaat Hulett Limited component and a Hulamin Limited component, as detailed in the 2007 Annual Report. The obligation to settle these share schemes is in accordance with the following principles, which are in accordance with the Unbundling Agreement. Tongaat Hulett is obliged to settle all benefits under the SARS grant of 2006 and the original share options for its own employees using Tongaat Hulett shares. It will settle the outstanding share scheme instruments that arise after the award adjustments for its own employees, by purchasing Tongaat Hulett shares in the market, or by issuing Tongaat Hulett shares. The benefit for the Hulamin component will be determined with reference to the Hulamin share price, and the Tongaat Hulett component with respect to the Tongaat Hulett share price, however, benefits arising from the Hulamin component will be settled using Tongaat Hulett shares.
 
The Tongaat-Hulett Group Limited 2001 Share Option Scheme (the Original Share Option Scheme)
 
Under the original share option scheme, participating employees were awarded share options in the company. On vesting, the employee is entitled to purchase shares in the company and immediately sell the shares at the market price, thereby benefiting from the appreciation in the share price.
 
The option price and number of unexercised options after the unbundling of Hulamin were apportioned into a Tongaat Hulett component (Tongaat Hulett) and a Hulamin component (Hulamin), as detailed in the 2007 Annual Report.
 
Expiring ten years from Option price Rand
Apportioned		 Fair value Rand
Apportioned		 Number of options at 31 March 2013 Options exercised   Options lapsed   Number of
options at
31 March 2014
  Tongaat Hulett Hulamin Tongaat Hulett Hulamin Tongaat Hulett Hulamin Tongaat Hulett Hulamin Tongaat Hulett Hulamin
                     
14 April 2003 24,37 7,53 8,51 2,63 9 100 144 100 9 100 144 100    
1 October 2003 26,35 8,15 8,51 2,63 30 000 30 000 30 000 30 000    
21 April 2004 35,90 11,10 12,27 3,79 152 800 392 100 136 600 6 600 16 200 385 500
          191 900 566 200 175 700 180 700 16 200 385 500
 
No awards have been made since 21 April 2004 under the original share option scheme, which was replaced by share schemes based on equity-settled share appreciation rights, conditional shares and a deferred annual bonus plan.
 
The significant inputs into the model for the 2004 awards of the original share option scheme were:
 
Exercise price The exercise price is the share price at grant date, as noted above, allocated between Tongaat Hulett and Hulamin.
Expected option life 114 months (assume contractual plus a leaving percentage of 5%).
Risk-free interest rate 9,84%
Expected volatility Expected volatility of 35% is based on historical volatility determined by the statistical analysis of daily share price movements over the past three years.
Expected dividends The measurement of the fair value of the share option did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 3,9% was used.
Weighted average share price Tongaat Hulett component: R35,90 (2013: R33,86)
Hulamin component: R11,10 (2013: R10,04).
Expected early exercise Early exercise is taken into account on an expectation basis.
Performance (vesting) conditions There are no performance (vesting) conditions other than the passage of time.
Non-market performance conditions No non-market conditions.
Market performance conditions No market conditions.
Weighted average remaining life:  
    Expected 1 month (2013: 10 months)
    Contractual 120 months
 
Share Appreciation Right Scheme 2005
 
Under the share appreciation right scheme, participating employees are awarded the right to receive shares equal to the difference between the exercise price and the grant price, less income tax payable on such difference. The employee therefore participates in the after tax share price appreciation in the company. The vesting of the right is conditional on the achievement of Tongaat Hulett performance levels over a performance period.
 
The grant price and number of unexercised rights after the unbundling of Hulamin were apportioned into a Tongaat Hulett component and a Hulamin component, as detailed in the 2007 Annual Report.
 
Expiring seven years from Grant
price
Rand		 Fair
value
Rand		 Number of rights at
31 March 2013		 Rights
granted		 Rights
exercised 		Rights
forefeited		 Rights lapsed Number of rights at 31 March 2014
      Tongaat Hulett Hulamin Tongaat Hulett Tongaat Hulett Tongaat Hulett Hulamin Tongaat Hulett
                   
22 April 2006 96,09 18,11 44 570 793 102   44 570   793 102  
20 August 2007 88,84 15,97 630 807     74 015     556 792
25 April 2008 92,74 16,93 806 576     94 372     712 204
22 May 2009 75,06 12,54 985 523     57 329 9 608   918 586
31 May 2010 97,49 20,00 1 217 706     125 891 14 576   1 077 239
31 May 2011 90,42 17,50 1 460 832       26 159   1 434 673
29 May 2012 110,21 21,73 1 367 446       15 425   1 352 021
29 May 2013 126,85 24,30     1 435 892   34 903   1 400 989
      6 513 460 793 102 1 435 892 396 177 100 671 793 102 7 452 504
                   
The estimated fair value costing of these outstanding share appreciation rights was determined using the binomial tree valuation model and non-market performance conditions, based on the following significant inputs:
 
Exercise price The share price at grant date, as noted above.
Expected option life 80 months (assume contractual plus a leaving percentage of 5%).
Risk-free interest rate 2013 award: 6,73% (2012 award: 7,26%, 2011 award: 7,95%, 2010 award: 7,71%, 2009 award: 7,66%, 2008 award: 8,75% and 2007 award: 8,19%).
Expected volatility Expected volatility of 28,34% (2012: 28,51%, 2011: 30%, 2010: 26,78%, 2009: 28% and 2008 and 2007: 27%) is based on historical volatility determined by the statistical analysis of daily share price movements over the past three years.
Expected dividends The measurement of the fair value of the share appreciation rights did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 2,6% was used for the 2013 award (2012 award: 2,6%; 2011 award: 2,75%; 2010 award: 2,5%; 2009 award: 3,5% and 2008 and 2007 awards: 3,44%).
Weighted average share price As above.
Expected early exercise Early exercise is taken into account on an expectation basis.
Time constraints Three years from grant date.
Performance (vesting) conditions An increase in headline earnings per ordinary share as determined by the Remuneration Committee. Retesting of the performance condition is not allowed with effect from the 2010 award.
Non-market performance conditions Growth in headline earnings per share.
Market performance conditions No market conditions.
Weighted average remaining life:  
    Expected 2013 award: 74 months (2012 award: 62 months; 2011 award: 50 months; 2010 award:
38 months; 2009 award: 26 months; 2008 award: 13 months and 2007 award: 5 months).
    Contractual 84 months.
   
Long Term Incentive Plan 2005
 
Under the long term incentive plan, participating employees are granted conditional awards. These awards are converted into shares on the achievement of performance conditions over a performance period.
               
Expiring three years from Issue price
Rand		 Fair value
Rand		 Number of
conditional
awards 31
March 2013		 Conditional
awards
granted 		Conditional
awards
settled 		Conditional
awards
lapsed /
forfeited 		Number of
conditional
awards 31
March 2014
               
31 May 2010 97,49 46,55 171 916   25 787 146 129
31 May 2011 90,42 40,54 202 238       202 238
29 May 2012 110,21 47,69 341 489     2 557 338 932
29 May 2013 126,85 49,22   555 092   15 437 539 655
      715 643 555 092 25 787 164 123 1 080 825
               
The estimated fair value costing of these outstanding conditional share awards was determined using the Monte Carlo Simulation model and non-market performance conditions, based on the following significant inputs:
   
Exercise price The share price at grant date, as noted above.
Expected option life 34 months (assume contractual plus a leaving percentage of 5%).
Expected dividends The measurement of the fair value of the conditional share awards did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 2,6% was used for the 2013 award (2012 award: 2,6% and 2011 award: 2,75%).
Weighted average share price As above.
Time constraints Three years from grant date.
Performance (vesting) conditions For the 29 May 2013 award, 25% of the award is subject to the TSR condition, 25% to the Return on Capital Employed (ROCE) condition, 25% to a Sugar Production condition and 25% is subject to the Bulk Land Deals condition. No retesting of the performance conditions is allowed.
  For the 29 May 2012 award, 25% of the award is subject to the TSR condition, 25% to the ROCE condition, 25% to a Sugar Production condition and 25% is subject to the establishment of a regulatory framework for Electricity in South Africa. For awards made up to 31 May 2011, 50% of the LTIP award is subject to the TSR condition and 50% is subject to the ROCE condition. No retesting of the performance conditions is allowed.
Non-market performance conditions For the 29 May 2013 award, ROCE, Sugar Production and the Bulk Land Deals conditions.
For the 29 May 2012 award, ROCE, Sugar Production and the establishment of a regulatory framework for Electricity in South Africa.
For awards made up to 31 May 2011, ROCE.
Market performance conditions Total shareholder return (TSR).
Weighted average remaining life:  
    Expected 2013 award: 26 months (2012 award: 14 months and 2011 award: 2 months).
    Contractual 36 months.
   
Long Term Incentive Plan 2005 - Retention Awards  
 
Under the long term incentive plan, participating employees are granted conditional awards which are converted into shares after the required service period is completed.
           
Expiring four years from Issue price
Rand		 Fair value
Rand		 Number of
conditional
awards 31
March 2013		 Conditional
awards
granted 		Number of
conditional
awards 31
March 2014
           
31 May 2011 90,42 65,87 13 200   13 200
14 November 2011 94,26 84,31 20 000   20 000
28 November 2011 90,86 81,27 20 000   20 000
16 November 2012 126,71 92,88 72 442   72 442
11 March 2013 139,39 102,18 15 000   15 000
29 May 2013 126,85 92,99   99 205 99 205
      140 642 99 205 239 847
           
The estimated fair value costing of these outstanding conditional share awards was based on the following significant inputs:
           
Exercise price The share price at grant date, as noted above.
Expected option life 46 months (assume contractual plus a leaving percentage of 5%) for the May 2011, 2012 and 2013 awards and 48 months (assume contractual plus a leaving percentage of 0%) for the November 2011 awards.
Expected dividends The measurement of the fair value of the conditional share awards did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 2,6% was used for the May 2013 award (November 2012 and March 2013 awards: 2,6% and 2011 awards: 2,75%).
Weighted average share price As above.
Time constraints Four years from grant date.
Performance (vesting) conditions There are no performance (vesting) conditions other than the passage of time.
Non-market performance conditions No non-market conditions.
Market performance conditions No market conditions.
Weighted average remaining life:  
    Expected 29 May 2013 award: 38 months (16 November 2012 award: 32 months; 11 March 2013 award: 35 months; 31 May 2011 award: 14 months; 14 November 2011 award: 19 months and 28 November 2011 award: 20 months).
    Contractual 48 months.
   
Deferred Bonus Plan 2005    
 
Under the deferred bonus plan, participating employees purchase shares in the company with a portion of their after tax bonus. These pledged shares are held in trust by a third-party administrator for a qualifying period, after which the company awards the employee a number of shares in the company which matches those pledged shares released from the trust.
             
Expiring three years from Issue price
Rand		 Fair value
Rand		 Number of
conditional
awards at 31
March 2013
 Conditional
awards
granted		 Conditional
awards
settled 		Number of
conditional
awards at 31
March 2014
             
1 June 2010 100,40 81,18 10 768   10 768
30 May 2011 93,35 71,30 37 885     37 885
30 May 2012 111,11 87,31 66 008     66 008
29 May 2013 126,85 100,49   63 630   63 630
      114 661 63 630 10 768 167 523
             
The estimated fair value costing of the outstanding deferred bonus share awards was based on the following significant inputs:
         
Share price at grant date The price at which the deferred bonus share is issued, as noted above.
Expected option life 34 months (assume contractual plus a leaving percentage of 5%).
Expected dividends The measurement of the fair value of the deferred bonus shares did not take into account dividends, as no dividend payment was expected. A continuous dividend yield of 2,6% was used for the 2013 award (2012 award: 2,6% and 2011 award: 2,75%).
Weighted average share price As above.
Time constraints   Three years from grant date.
Performance (vesting) conditions There are no performance (vesting) conditions other than the passage of time.
Non-market performance conditions No non-market conditions.
Market performance conditions No market conditions.
Weighted average remaining life:  
    Expected 2013 award: 26 months (2012 award: 14 months and 2011 award: 2 months).
    Contractual 36 months.
             
The deferred bonus shares were purchased by the participating employees on 31 May 2013 in respect of the 2013 award. (2012 award purchased 30 May 2012 and the 2011 award purchased 30 May 2011).
             
Interest of directors of the company in share-based instruments  
   
The Original Share Option Scheme  
 
The option price and number of unexercised options after the unbundling of Hulamin were apportioned into a Tongaat Hulett component (Tongaat Hulett) and a Hulamin component (Hulamin), as detailed in the 2007 Annual Report.
                     
Name of executive director Expiring ten
years
from		 Option price
Rand Apportioned		 Fair value
Rand Apportioned		 Number of options
at 31 March 2013		 Options
exercised 		Options
lapsed 		Number of options at
31 March
2014
    Tongaat Hulett Hulamin Tongaat
Hulett		 Hulamin Tongaat Hulett Hulamin Tongaat Hulett Hulamin Hulamin
                     
M H Munro 14 April 2003 24,37 7,53 8,51 2,63   4 900   4 900  
  1 October 2003 26,35 8,15 8,51 2,63 30 000 30 000 30 000 30 000  
  21 April 2004 35,90 11,10 12,27 3,79 32 000 32 000 32 000   32 000
            62 000 66 900 62 000 34 900 32 000
                     
P H Staude 21 April 2004 35,90 11,10 12,27 3,79   28 000     28 000
                     
Share Appreciation Right Scheme 2005
 
The grant price and number of unexercised rights after the unbundling of Hulamin were apportioned into a Tongaat Hulett component (Tongaat Hulett) and a Hulamin component (Hulamin) as detailed in the 2007 Annual Report.
                   
Name of executive director Expiring seven years from Grant price Rand Fair value
Rand		 Number of
rights at
31 March 2013		 Rights granted Rights lapsed Number of rights at 31 March 2014 Performace condition and time constrained
        Tongaat Hulett Hulamin Tongaat Hulett Hulamin Tongaat Hulett Tongaat Hulett
                   
M H Munro 22 April 2006 96,09 18,11   20 472   20 472    
  20 August 2007 88,84 15,97 23 830       23 830  
  25 April 2008 92,74 16,93 25 807       25 807  
  22 May 2009 75,06 12,54 30 857       30 857  
  31 May 2010 97,49 20,00 23 638       23 638  
  31 May 2011 90,42 17,50 28 669       28 669 28 669
  29 May 2012 110,21 21,73 31 873       31 873 31 873
  29 May 2013 126,85 24,30     34 476   34 476 34 476
        164 674 20 472 34 476 20 472 199 150 95 018
                   
Share Appreciation Right Scheme 2005 continued
 
Name of executive director Expiring seven years from Grant price Rand Fair value
Rand		 Number of
rights at
31 March 2013		 Rights granted Rights lapsed Number of rights at 31 March 2014 Performace condition and time constrained
        Tongaat Hulett Hulamin Tongaat Hulett Hulamin Tongaat Hulett Tongaat Hulett
                   
P H Staude 22 April 2006 96,09 18,11   62 082   62 082    
  20 August 2007 88,84 15,97 71 073       71 073  
  25 April 2008 92,74 16,93 75 720       75 720  
  22 May 2009 75,06 12,54 91 120       91 120  
  31 May 2010 97,49 20,00 74 289       74 289  
  31 May 2011 90,42 17,50 87 397       87 397 87 397
  29 May 2012 110,21 21,73 93 530       93 530 93 530
  29 May 2013 126,85 24,30     104 578   104 578 104 578
        493 129 62 082 104 578 62 082 597 707 285 505
                   
Long Term Incentive Plan 2005
                   
Name of executive director Expiring three years from Issue price Rand Fair value
Rand		 Number of conditional awards at 31 March 2013 Conditional awards granted Conditional awards settled Conditional awards lapsed Number of conditional awards at 31 March 2014 Performace condition and time constrained
                   
M H Munro 31 May 2010 97,49 46,55 9 345   1 402 7 943    
  31 May 2011 90,42 40,54 11 384       11 384 11 384
  29 May 2012 110,21 47,69 12 696       12 696 12 696
  29 May 2013 126,85 49,22   15 709     15 709 15 709
        33 425 15 709 1 402 7 943 39 789 39 789
                   
P H Staude 31 May 2010 97,49 46,55 29 475   4 421 25 054    
  31 May 2011 90,42 40,54 34 829       34 829 34 829
  29 May 2012 110,21 47,69 39 355       39 355 39 355
  29 May 2013 126,85 49,22   47 660     47 660 47 660
        103 659 47 660 4 421 25 054 121 844 121 844
                   
Deferred Bonus Plan 2005
                 
Name of executive director Expiring three years from Issue price
Rand		 Fair value
Rand		 Number of conditional awards at
31 March 2013		 Conditional awards granted Conditional awards delivered Number of conditional awards at 31 March 2014 Conditional awards
time constrained
                 
M H Munro 1 June 2010 100,40 81,18 979   979    
  30 May 2011 93,35 71,30 3 492     3 492 3 492
  30 May 2012 111,11 87,31 5 493     5 493 5 493
  29 May 2013 126,85 100,49   4 821   4 821 4 821
        9 964 4 821 979 13 806 13 806
                 
P H Staude 1 June 2010 100,40 81,18 3 272   3 272    
  30 May 2011 93,35 71,30 10 856     10 856 10 856
  30 May 2012 111,11 87,31 17 090     17 090 17 090
  29 May 2013 126,85 100,49   14 720   14 720 14 720
        31 218 14 720 3 272 42 666 42 666
                 
The deferred bonus shares were purchased by the participating employees on 31 May 2013 in respect of the 2013 award. (2012 award purchased 30 May 2012 and the 2011 award purchased 30 May 2011).
                 
The share awards were made and exercised at various times and the average share price for the period was R121,32 (2013: R130,03).
                 
The gains made by directors are reflected here.
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