Page 19 - PowerPoint Presentation

Share-based Payment

Vesting Conditions & FV

• Vesting conditions same as restrictions

• Service conditions

• Period required to work

• Market performance conditions

• Related to share price

• E.g target share price
• Non-market performance conditions

• Other conditions – not related to share price

• E.g target earnings

• Do these vesting conditions affect value of equity

instrument?

• Eg An option is granted with an exercise price of R2 that can
be exercise in 3 years time

• The option may only be exercised if the company’s profits

are R4 billion.
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