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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