Merafe Resources Integrated Annual Report 2018

MERAFE RESOURCES INTEGRATED ANNUAL REPORT 2018 55 2018 R'000 2017 R'000 K Bissessor # Salary 1 594 1 927 Bonus – 1 796 Fringe benefits and leave pay 135 143 Provident contributions 220 292 Share grants vested 902* 650 Share options vested – 3 090 Total 2 851 7 898 2018 R'000 2017 R'000 D Chocho # Salary 883 – Bonus 750 – Fringe benefits and leave pay 31 – Provident contributions 163 – Share grants vested – – Share options vested – – Total 1 827 – * See the 2018 online Integrated Annual Report for additional information regarding the calculation of the value of the options exercised. # K Bissessor resigned on 31 August 2018 and D Chocho was appointed on 1 August 2018. Note: In 2018, salary increases of 6.1% applied to ZJ Matlatla and 8.1% to K Bissessor. In 2019, a 6.5% salary increase was agreed for executives. Short-term incentives The executive directors were assessed by the Committee according to the table set out below which was then used as a basis for awarding bonuses for 2018. Key factors Key measurement items Profitability EBITDA compared to budget and previous year Growth of business Grow assets and revenue Cost management Effective cost management at Venture and Merafe level Sustainability BEE rating to amended scorecard, Corporate Social Investment, Environmental incidents Safety Total Recordable Injury Frequency Rate, Fatalities Stakeholder engagement Stakeholder engagement programme including interactions with SARS, partners, shareholders, employees, etc Talent management Succession planning, managing employees, training, mentoring Reporting Interim and annual reporting and engagement with stakeholders Total rating As per the Policy, the Committee applied a less mechanistic and more holistic approach which has resulted in the following bonus allocation: 2018 % allocation of cost to Company 2017 % allocation of cost to Company Chief Executive Officer 75 90 Financial Director 60 72 Long-term incentives Long-term incentives – 2018 (refer to website for full section) The award of long term incentives for 2018 under the Company's share option and grant schemes are set out below: Share grants and options that vested in 2018 were as follows: Chief Executive Officer Share grants Number of shares Rand value 2 236 876 3 366 364 Share options Number of shares Rand value – – Financial Director Share grants Number of shares Rand value 605 119 902 088 Share options Number of shares Rand value – – Note: All the Financial Director shares relate to Kajal Bissessor who forfeited all unvested shares upon her resignation in 2018. Long-term incentives – 2017 The award of long term incentives for 2017 under the Company's share option and grant schemes are set out below: Share grants and options that vested in 2017 were as follows: Chief Executive Officer Share grants Number of shares Rand value 3 058 861 4 574 486 Share options Number of shares Rand value 5 309 546 1 911 436 Financial Director Share grants Number of shares Rand value 373 536 650 049 Share options Number of shares Rand value 3 000 000 3 090 000 Note: Performance conditions for share options and share grants that vested in 2017 and 2018 were met. The Company ranked not lower than position 4 relative to its peers on the TSR measure.