Remgro’s Million-Rand Talent Boost: Executives Secure Lucrative Stock Awards in Bold Incentive Move

  • Executive Awards Grant: Remgro Limited granted Performance CSPs, Performance SARs, and Retention CSPs to key personnel on 5 December 2023.
  • Deemed Value and Acceptance: Executives and the Company Secretary accepted awards with a combined deemed value exceeding R100 million.
  • Vesting Conditions and Schedule: Vesting is subject to Performance Conditions, with shares vesting in stages over five years, emphasizing long-term commitment.
By Lethabo Ntsoane

Remgro Limited, a key player in the South African business landscape, disclosed the acceptance and vesting details of awards granted to its Executive Directors, Prescribed Officers, and Company Secretary on 5 December 2023.

Granting of Performance and Retention Plans

In an effort to motivate and retain top-tier talent, Remgro awarded Executive Directors and Prescribed Officers with Ordinary shares embedded with performance conditions through the Conditional Share Plan (Performance CSPs) and rights to ordinary shares under the Share Appreciation Rights Plan (Performance SARs). Simultaneously, the Company Secretary received ordinary shares with retention conditions under the Retention Conditional Share Plan (Retention CSPs).

The grant price of R145.17 per ordinary share and/or right was determined based on the 5-day volume weighted average price of Remgro ordinary shares up to 4 December 2023.

Acceptance and Deemed Value of Transactions

The off-market acceptance of Performance CSPs and Performance SARs by Executive Directors and Prescribed Officers, and Retention CSPs by the Company Secretary, took place on 5 December 2023. The deemed value of transactions and the nature of interest, all deemed direct beneficial, are detailed in the table below:

Executive DirectorPerformance CSPsPerformance SARsDeemed Value of Transactions (Rands)
Mr J J Durand267,79089,264R51,833,529.18
Mrs M Lubbe59,50319,835R11,517,497.46
Mr N J Williams91,20030,400R17,652,672.00
Prescribed OfficerPerformance CSPsPerformance SARsDeemed Value of Transactions (Rands)
Mr P R Louw58,80619,602R11,382,489.36
Mr P J Uys111,31437,105R21,545,986.23
Company SecretaryRetention CSPsDeemed Value of Transactions (Rands)
Mrs D I Dreyer1,970R285,984.90

Purpose and Vesting Conditions

The purpose of these incentive plans is to incentivize, motivate, and retain employees by granting shares as remuneration, allowing them to share in the success of Remgro. Vesting of the Performance CSPs, Performance SARs, and Retention CSPs is contingent upon the satisfaction of Performance Conditions and/or Employment Conditions, as determined by the Remuneration and Nomination Committee.

Performance Conditions include specific financial measures such as Total Return, Growth in Free Cash Flow, non-financial measures encompassing ESG & Company Strategic measures, and Individual Performance Conditions.

Vesting Schedule

Provided the Vesting Conditions are met, the awards will vest according to the following schedule:

  • Up to one-third on or after the third anniversary of the grant date, 5 December 2026.
  • Up to two-thirds on or after the fourth anniversary of the grant date, 5 December 2027.
  • The remaining portion on or after the fifth anniversary of the grant date, 5 December 2028.
  • All Performance SARs must be exercised by the seventh anniversary of the grant date, 5 December 2030.
  • On vesting of the Performance CSPs and Retention CSPs, dividend equivalents will be converted to additional shares.

Approval and Conclusion

Approval for individual allocations has been granted, signifying a strategic move by Remgro to align the interests of key personnel with the company’s long-term success.

The announcement sheds light on Remgro’s commitment to retaining and rewarding its talented workforce, thereby reinforcing its position as a key player in the South African business landscape.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo