DISCLOSURES ON REMUNERATION MATTERS

Further disclosures on remuneration matters

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

Remuneration 
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 executive directors of the company inshare-based instruments 
Special resolution setting out remuneration to be paid to directors for their services as directors of the company for the ensuing year 
Non-binding advisory vote on the remuneration policy 
Non-binding advisory vote on the implementation report 

DIRECTORS' AND PRESCRIBED OFFICERS' EMOLUMENTS AND INTERESTS'

Executive directors' remuneration (R000)

The executive directors' remuneration for the year ended 31 March 2018 was as follows:

Name  Cash
package 		Cash bonus *^ Retirement and medical contributions Total
            
            
PH Staude  8 799  -  1 308  10 107 
MH Munro  5 197  -  779  5 976 
   13 996  -  2 087  16 083 

The executive directors' remuneration for the year ended 31 March 2017 was as follows: 

Name  Cash package  Cash bonus *  Retirement and medical contributions  Total 
            
PH Staude  8 799  6 626  1 276  16 701 
MH Munro  4 880  2 884  727  8 491 
   13 679  9 510  2 003  25 192 

* Bonuses are reported to match the performance and quantum earned to the applicable financial period. 
^ No bonuses were paid to the CEO and CFO in the 2017/18 year due to the headline earnings threshold of R800 million not being met. 

The requirement to include prescribed officers is covered by the above executive directors, as they exercise effective management and control. 

Details of the executive directors' share-based instruments granted and exercised (including the gain/value on settlement) are contained here. 

Non-executive directors' remuneration (R000)
   12 months to 31 March 2018  12 months to 31 March 2017 
Name  Fees  Other  Total  Fees  Other  Total 
                    
SM Beesley  366  441  807  334  339  673 
F Jakoet  385  319  704  363  300  663 
J John  385  377  762  363  356  719 
RP Kupara  354  188  542  363  178  541 
TN Mgoduso  354  130  484  363  123  486 
N Mjoli-Mncube  385  473  858  363  463  826 
SG Pretorius  385  324  709  363  417  780 
TA Salomao 354     354  363     363 
CB Sibisi  1 361  315  1 676  1 282  236  1 518 
   4 329  2 567  6 896  4 157  2 412  6 569 
 
In the table above, "Fees" relate to the 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 2018. 
 
Interest of directors of the company in share capital 
The aggregate holdings as at 31 March 2018 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              2018  2017 
                    
Executive directors:                   
PH Staude              417 494  386 328 
MH Munro              150 460  138 136 
               567 954  524 464 

EMPLOYEE SHARE INCENTIVE SCHEMES 
Details of awards in terms of the company's share incentive schemes: 
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. 
Expiring
seven years from 		 Grant
price
Rand  		Fair
value
Rand  		Number of
rights
31 March 2017 		 Granted  Exercised  Lapsed/
forfeited 		 Number of
rights
31 March 2018 
                       
31 May 2010  97,49  20,00  458 767     458 767       
31 May 2011  90,42  17,50  691 771     299 813     391 958 
29 May 2012  110,21  21,73  792 889     3 007  5 132  784 750 
26 May 2014  121,93  23,96  1 525 312     7 188  1 518 124    
28 May 2015  128,54  23,68  1 687 368     7 818  36 946  1 642 604 
6 June 2016  113,41  28,06  1 536 084     7 218  34 595  1 494 271 
29 May 2017  115,85  25,28     1 460 996     9 682  1 451 314 
         6 692 191  1 460 996  783 811  1 604 479  5 764 897 
 
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: 
Strike price  The grant price, as noted above. 
Expected option life  80 months (assume contractual plus a leaving percentage of 5%). 
Risk-free interest rate  2017: 7,63% (2016: 8,51%, 2015: 7,96%, 2014: 7,78%, 2013: 6,73%, 2012: 7,26% and 2011: 7,95%). 
Expected volatility  Expected volatility of 25% for the 2017 award (2016: 29%, 2015: 22,51%, 2014: 27,57%, 2013: 28,34%, 2012: 28,51% and 2011: 30%) 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 2017 award (2016, 2015, 2014, 2013 and 2012: 2,6% and 2011: 2,75%). 
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. 
Non-market performance conditions  Growth in headline earnings per share. 
Market performance conditions  No market conditions. 
Weighted average remaining life: 
Expected  2017: 74 months, 2016: 62 months, 2015: 50 months, 2014: 26 months, 2013: 26 months, 2012: 14 months and 2011: 2 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 		 Grant price
Rand 		 Fair value
Rand 		 Number of
conditional awards
31 March 2017 		 Granted  Settled  Lapsed/
forfeited  		Number of conditional awards
31 March 2018 
                       
26 May 2014  121,93  51,79  553 034     207 211  345 823    
28 May 2015  128,54  57,82  541 397     1 424  11 083  528 890 
6 June 2016  113,41  60,28  558 904     627  12 647  545 630 
29 May 2017  115,85  63,39     712 153     4 719  707 434 
         1 653 335  712 153  209 262  374 272  1 781 954 
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: 
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 these awards. 
Time constraints  Three years from grant date. 
Performance (vesting) conditions  2017 award: 40% of the award will be subject to the TSR condition, 40% to the return on capital employed (ROCE) condition and 20% to a sugar production condition. No retesting of the performance conditions is allowed. 
2016 award: 25% of the award will be subject to the TSR condition, 25% to the ROCE condition, 25% to a sugar production condition and 25% will be subject to the land conversion cash generation condition. No retesting of the performance conditions is allowed. 
2015 award: 25% of the award will be subject to the TSR condition, 25% to the ROCE condition, 25% to a sugar production condition and 25% will be subject to the large land deals of the company condition. No retesting of the performance conditions is allowed. 
Non-market performance conditions  ROCE, sugar production and the large land deals conditions. 
Market performance conditions  Total shareholder return (TSR). 
Weighted average remaining life: 
Expected  2017: 26 months, 2016: 14 months and 2015: 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. 
Awards expiring four years from grant date 
Expiring
four years from 		 Grant price
Rand 		 Fair value
Rand 		 Number of
conditional awards
31 March 2017 		 Granted  Settled  Lapsed/
forfeited  		Number of
conditional
awards
31 March 2018 
                       
29 May 2013  126,85  92,99  97 351     93 373  3 978    
26 May 2014  121,93  89,38  136 349     1 808  4 135  130 406 
28 May 2015  128,54  94,23  176 155     1 428  10 268  164 459 
6 June 2016  113,41  102,07  144 963     640  10 916  133 407 
29 May 2017  115,85  104,26     239 700        239 700 
2 January 2018  113,63  102,27     15 000        15 000 
         554 818  254 700  97 249  29 297  682 972 
                
The estimated fair value costing of these outstanding conditional share awards was based on the following significant inputs: 
Expected option life  46 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. 
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  2 January 2018: 45 months, 29 May 2017: 38 months, 2016: 26 months, 2015: 14 months and 2014: 2 months 
Contractual  48 months. 
Awards expiring five years from grant date 
Expiring
five years from 		 Grant price
Rand 		 Fair value
Rand 		 Number of
conditional awards
31 March 2017 		 Granted  Settled  Lapsed/
forfeited  		Number of
conditional
awards
31 March 2018 
                       
22 September 2017  108,39  95,01     15 000        15 000 
2 January 2018  113,63  99,61     15 000        15 000 
            30 000        30 000 
                       
The estimated fair value costing of these outstanding conditional share awards was based on the following significant inputs: 
Expected option life  57 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. 
Time constraints  Five 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  2 January 2018: 57 months and 22 September 2017: 54 months. 
Contractual  60 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 which are then released from trust. 
              
Expiring
three years from 		 Grant price
Rand 		 Fair value
Rand 		 Number of conditional awards 31 March 2017  Granted  Settled  Number of conditional awards 31 March 2018 
                    
26 May 2014  121,93  96,60  73 165     73 165    
25 May 2015  131,27  103,99  60 909        60 909 
30 May 2016  113,06  104,47  44 464        44 464 
29 May 2017  115,85  107,05     94 000     94 000 
         178 538  94 000  73 165  199 373 
              
The estimated fair value costing of the outstanding deferred bonus share awards was based on the following significant inputs: 
        
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. 
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  2017: 26 months, 2016: 14 months and 2015: 2 months. 
Contractual  36 months. 
                    
The deferred bonus shares were purchased by the participating employees on 30 May 2017 in respect of the 2017 award. (2016 award purchased 3 June 2016 and the 2015 award purchased 1 June 2015). 

Interest of executive directors of the company in share-based instruments
Share Appreciation Right Scheme 2005 
Name  Expiring
seven
years
from 		 Grant
price
Rand  		Fair
value
Rand 		 Number of
rights
31 March
2017 		 Granted  Exercised  Lapsed  Number of rights
31 March
2018 		 Performance condition
and time
constrained 
                                
PH Staude  31 May 2010  97,49  20,00  74 289     74 289          
   31 May 2011  90,42  17,50  87 397     87 397          
   29 May 2012  110,21  21,73  65 845           65 845    
   26 May 2014  121,93  23,96  115 081        115 081       
   28 May 2015  128,54  23,68  123 414           123 414  123 414 
   6 June 2016  113,41  28,06  111 172           111 172  111 172 
   29 May 2017  115,85  25,28  106 763        106 763  106 763 
            577 198  106 763  161 686  115 081  407 194  341 349 
                          
MH Munro  31 May 2010  97,49  20,00  23 638     23 638          
   31 May 2011  90,42  17,50  28 669           28 669    
   29 May 2012  110,21  21,73  22 439           22 439    
   26 May 2014  121,93  23,96  47 818        47 818       
   28 May 2015  128,54  23,68  52 248           52 248  52 248 
   6 June 2016  113,41  28,06  49 654           49 654  49 654 
   29 May 2017  115,85  25,28  47 177        47 177  47 177 
            224 466  47 177  23 638  47 818  200 187  149 079 
 
Long Term Incentive Plan 2005 
                  
Name  Expiring
three years
from 		 Grant price
Rand  		Fair
value
Rand 		 Number of
conditional
awards
31 March
2017 		 Granted  Settled  Lapsed  Number of conditional
awards
31 March 2018 		 Performance condition
and time
constrained 
PH Staude  26 May 2014  121,93  51,79  49 144     18 429  30 715       
   28 May 2015  128,54  57,82  46 660           46 660  46 660 
   6 June 2016  113,41  60,28  47 766           47 766  47 766 
   29 May 2017  115,85  63,39  52 041        52 041  52 041 
            143 570  52 041  18 429  30 715  146 467  146 467 
                          
MH Munro  26 May 2014  121,93  51,79  20 420     7 658  12 762       
   28 May 2015  128,54  57,82  19 753           19 753  19 753 
   6 June 2016  113,41  60,28  21 334           21 334  21 334 
   29 May 2017  115,85  63,39  22 996        22 996  22 996 
            61 507  22 996  7 658  12 762  64 083  64 083 

Deferred Bonus Plan 2005 
Name  Expiring
three
years
from 		 Grant
price
Rand  		Fair
value
Rand 		 Number of
conditional
awards
31 March
2017 		 Granted  Delivered  Number of
conditional awards
31 March
2018 		 Conditional
awards
time
constrained 
PH Staude 26 May 2014  121,93  96,60  17 451     17 451       
   25 May 2015  131,27  103,99  13 405        13 405  13 405 
   30 May 2016  113,06  104,47  9 301        9 301  9 301 
   29 May 2017  115,85  107,05     19 883     19 883  19 883 
            40 157  19 883  17 451  42 589  42 589 
                          
MH Munro 26 May 2014  121,93  96,60  5 539     5 539       
   25 May 2015  131,27  103,99  4 114        4 114  4 114 
   30 May 2016  113,06  104,47  3 092        3 092  3 092 
   29 May 2017  115,85  107,05     6 657     6 657  6 657 
            12 745  6 657  5 539  13 863  13 863 
 
The deferred bonus shares were purchased by the participating employees on 30 May 2017 in respect of the 2017 award. (2016 award purchased 3 June 2016 and the 2015 award purchased 1 June 2015). 
 
Executive directors' share incentive gain/value on settlement (R000)
The Executive directors' share incentive gain/value on settlement relates to Share Appreciation Rights which had previously vested and have now been exercised and settled and to the Long Term Incentive Plan and Deferred Bonus Plan which vested and were settled. 
               
Name  Share-based instrument    2018  2017 
               
PH Staude         
   Share Appreciation Rights    4 328  3 844 
   Long Term Incentive Plan    2 209  1 451 
   Deferred Bonus Plan    2 092  1 715 
          8 629  7 010 
               
MH Munro         
   Share Appreciation Rights    595  1 305 
   Long Term Incentive Plan    919  480 
   Deferred Bonus Plan    665  563 
          2 179  2 348 
          
The share awards were made and exercised at various times and the average share price for the period was R114,17 (2017: R122,68). 
top of page