Integrated Reports Senwes Financial Review 2018 - Page 38

38 FINANCIAL REVIEW 13. 13.2 Equity-settled share-based payment scheme EMPLOYEE BENEFITS Senwes grants shares to its senior management. These shares are acquired and held in a trust for the last three years of the vesting period. The scheme will be a forfeitable share award scheme, where shares will be forfeited if future service and performance conditions are not met. 13.1 Short-term incentive bonuses GROUP AND COMPANY The fair value of the shares granted are determined by using the market value of the shares on grant date adjusted with the present value of dividends not entitled to. The grant date is the date on which the entity and the participant agree to a share-based payment arrangement. 2017 2018 Short- term R’m Short- term R’m Long- term R’m Total R’m Balance at the beginning of the year 14 13 6 19 Increase in provision during the year 45 14 - 14 (12) (13) (6) (19) 47 14 - 14 Utilised during the year Balance at the end of the year The group has a short-term incentive scheme for employees and an equity-settled share-based payment scheme for senior management. It is aligned with the objectives and remuneration philosophy of the group in that a portion of the remuneration is subject to risk. Provisions are created in accordance with the rules of the schemes. 13.1.1 SHORT-TERM INCENTIVE SCHEME The short-term incentive scheme is paid each year to qualifying employees. The calculation is based on the performance of the group, the division in which the employee is employed as well as an individual evaluation of the performance of the employee. The total group expense recognised for the year amounts to R17 million (2017: R10 million). The accumu- lated equity-settled reserve amounts to R53 million (2017: R41 million), refer to the tabel below for more details: GROUP COMPANY 2018 R’m 2017 R’m 2018 R’m 2017 R’m Opening balance 41 31 41 31 Vested during the year (5) - (5) - Expense recognised 17 10 17 10 Initial share granted 9 10 9 10 Increase in share granted/new participants 8 5 8 5 Overprovision due to change in vesting conditions - (2) - (2) Forfeited during the year - (3) - (3) 53 41 53 41 Equity-settled share-based payment reserve Number of shares per tranche granted Fair value price per share on grant date Vesting date 1 - - 30 June 2017 2 1  746  673 9,99 30 June 2018 3 2  322  971 9,55 30 June 2019 4 2  071  191 9,06 30 June 2020 5 1  585  225 8,53 30 June 2021 6 1  585  225 8,05 30 June 2022 Total 9  311  285 Tranche The first tranche