DISCLOSURES ON
REMUNERATION MATTERS

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
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 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 2016 was as follows: 

Name  Cash
package
Cash
bonus* 
Retirement  and medical  contributions  Total 
         
         
PH Staude  8 799  2 772  1 240  12 811 
MH Munro  4 626  1 198  684  6 508 
  13 425  3 970  1 924  19 319 


The executive directors' remuneration for the year ended 31 March 2015 was as follows: 

Name  Cash package  Cash
bonus* 
Retirement  and medical  contributions  Total 
         
PH Staude  8 301  4 616  1 166  14 083 
MH Munro  4 283  1 842  632  6 757 
  12 584  6 458  1 798  20 840 


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: 

  2016  2015 
     
PH Staude  3 662  12 650 
MH Munro  2 160  2 691 
  5 822  15 341 


Details of the executive directors' share-based instruments granted and exercised are contained on here. 

Non-executive directors' remuneration (R000)

  12 months to 31 March 2016  12 months to 31 March 2015 
             
Name  Fees  Other  Total  Fees  Other  Total 
             
SM Beesley  345  153  498  235  31  266 
F Jakoet  345  285  630  325  249  574 
J John  317  337  654  325  318  643 
RP Kupara  345  169  514  325  159  484 
TN Mgoduso  319  116  435  325  110  435 
N Mjoli-Mncube  317  403  720  325  344  669 
SG Pretorius  345  286  631  325  253  578 
TA Salomão (from 25 May 2015) 285    285       
CB Sibisi  1 218  224  1 442  928  162  1 090 
Directors who retired/resigned        559  73  632 
  3 836  1 973  5 809  3 672  1 699  5 371 


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 2016. 

Interest of directors of the company in share capital 

The aggregate holdings as at 31 March 2016 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  2016  2015 
     
Executive directors:     
PH Staude  340 787  326 467 
MH Munro  122 935  114 517 
  463 722  440 984 
Non-executive directors:     
F Jakoet  5 068  5 068 

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 2015 
Granted  Exercised  Lapsed/ 
forefeited 
Number of
rights
31 March 2016 
               
25 April 2008  92,74  16,93  240 733    240 733     
22 May 2009  75,06  12,54  590 779    89 445    501 334 
31 May 2010  97,49  20,00  663 215    22 008    641 207 
31 May 2011  90,42  17,50  780 424    9 787  11 774  758 863 
29 May 2012  110,21  21,73  1 344 992    39 249  405 834  899 909 
29 May 2013  126,85  24,30  1 384 076      8 521  1 375 555 
26 May 2014  121,93  23,96  1 578 001      1 666  1 576 335 
28 May 2015  128,54  23,68    1 745 458      1 745 458 
      6 582 220  1 745 458  401 222  427 795  7 498 661 


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  7,96% (2014: 7,78%, 2013: 6,73%, 2012: 7,26%, 2011: 7,95%, 2010: 7,71% and 2009: 7,66%). 
Expected volatility  Expected volatility of 22,51% (2014: 27,57%, 2013: 28,34%, 2012: 28,51%, 2011: 30%, 2010: 26,78% and 2009: 28%) 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 2015 award (2014, 2013 and 2012: 2,6%, 2011: 2,75%, 2010: 2,5% and 2009: 3,5%)
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  2015: 74 months; 2014: 62 months; 2013: 50 months; 2012: 38 months;
2011: 26 months; 2010: 14 months and 2009: 1 month. 
    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 2015 
Granted  Settled  Lapsed/ forefeited  Number of
conditional
awards
31 March 2016 
               
29 May 2012  110,21  47,69  337 779    88 470  249 309   
29 May 2013  126,85  49,22  533 475      2 805  530 670 
26 May 2014  121,93  51,79  571 779      513  571 266 
28 May 2015  128,54  57.82   559 899      559 899 
      1 443 033 559 899  88 470  252 627  1 661 835 

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 these awards. 
Weighted average share price  As above. 
Time constraints  Three years from grant date. 
Performance (vesting) conditions  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 condition 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  2015: 26 months; 2014: 14 months and 2013: 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 2015 
Granted  Settled  Lapsed/
forefeited 
Number of
conditional
awards 
31 March 2016 
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      815  98 390 
26 May 2014  121,93  89,38  139 767        139 767 
28 May 2015  128,54  94,23    179 642      179 642 
      379 614  179 642  53 200  815  505 241 

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%). 
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. 
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  28 May 2015: 38 months; 26 May 2014: 26 months; 29 May 2013: 14 months;
11 March 2013: 11 months; 16 November 2012: 8 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 which are then released from trust. 

Expiring
three years from 
Issue price
Rand 
Fair value
Rand 
Number of
conditional
awards
31 March 2015 
Granted  Settled  Number of
conditional
awards
31 March 2016 
             
30 May 2012  111,11  87,31  66 008    66 008   
29 May 2013  126,85  100,49  63 630      63 630 
26 May 2014  121,93  96,60  75 950      75 950 
25 May 2015  131,27  103,99    63 502    63 502 
      205 588  63 502  66 008  203 082 

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. 
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  2015: 26 months; 2014: 14 months and 2013: 2 months. 
    Contractual  36 months. 

The deferred bonus shares were purchased by the participating employees on 1 June 2015 in respect of the 2015 award. (2014 award purchased 2 June 2014 and the 2013 award purchased 31 May 2013). 

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
2015 
Granted  Exercised  Lapsed  Number of
rights
31 March
2016 
Performance
condition
and time
constrained 
                   
PH Staude  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   
  29 May 2012  110,21  21,73  93 530      27 685  65 845   
  29 May 2013  126,85  24,30  104 578        104 578  104 578 
  26 May 2014  121,93  23,96  115 081        115 081  115 081 
  28 May 2015  128,54  23,68    123 414      123 414  123 414 
        565 995  123 414    27 685  661 724  343 073 
             
MH Munro  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   
  29 May 2012  110,21  21,73  31 873      9 434  22 439   
  29 May 2013  126,85  24,30  34 476        34 476  34 476 
  26 May 2014  121,93  23,96  47 818        47 818  47 818 
  28 May 2015  128,54  23,68    52 248     52 248  52 248
        223 138  52 248  25 807  9 434  240 145  134 542 

Long Term Incentive Plan 2005 

   
Name  Expiring
three years
from 
Issue
price
Rand 
Fair
value
Rand 
Number of
conditional
awards
31 March
2015 
Granted  Settled  Lapsed  Number of
conditional
awards
31 March
2016 
Performance
condition
and time
constrained 
PH Staude  29 May 2012  110,21  47,69  39 355    10 349  29 006     
  29 May 2013  126,85  49,22  47 660        47 660  47 660 
  26 May 2014  121,93  51,79  49 144        49 144  49 144 
  28 May 2015  128,54  57,82    46 660      46 660  46 660 
        136 159  46 660  10 349  29 006  143 464  143 464 
           
MH Munro  29 May 2012  110,21  47,69  12 696    3 338  9 358     
  29 May 2013  126,85  49,22  15 709        15 709  15 709 
  26 May 2014  121,93  51,79  20 420        20 420  20 420 
  28 May 2015  128,54  57,82    19 753      19 753  19 753 
        48 825  19 753  3 338  9 358  55 882  55 882 

Deferred Bonus Plan 2005

Name  Expiring
three years
from 
Issue
price
Rand 
Fair
value
Rand 
Number of
conditional
awards
31 March
2015 
Granted  Delivered  Number of
conditional
awards
31 March
2016 
Conditional
awards
time
constrained 
PH Staude  30 May 2012  111,11  87,31  17 090    17 090     
  29 May 2013  126,85  100,49  14 720      14 720  14 720 
  26 May 2014  121,93  96,60  17 451      17 451  17 451 
  25 May 2015  131,27  103,99    13 405    13 405  13 405 
        49 261  13 405  17 090  45 576  45 576 
                 
MH Munro  30 May 2012  111,11  87,31  5 493    5 493     
  29 May 2013  126,85  100,49  4 821      4 821  4 821 
  26 May 2014  121,93  96,60  5 539      5 539  5 539 
  25 May 2015  131,27  103,99    4 114    4 114  4 114 
        15 853  4 114  5 493  14 474  14 474 

The deferred bonus shares were purchased by the participating employees on 1 June 2015 in respect of the 2015 award. (2014 award purchased 2 June 2014 and 2013 award purchased 31 May 2013). 

The share awards were made and exercised at various times and the average share price for the period was R112,38 (2015: R150,90). 

The share incentive gains made by directors are reflected here.