Notes to the annual financial statements

for the year ended 30 September

 
 
24.   DIRECTORS’ REMUNERATION AND INTERESTS  
  Payable to the directors of the company by the company and its subsidiaries for services as directors:  
  EXECUTIVE DIRECTORS  
    Salary  
R’000  
Bonus and  
performance  
related  
payments  
R’000  
Travel  
allowances  
R’000  
Retirement  
contri-  
butions  
R’000  
Medical  
contri-  
butions  
R’000  
Leave  
pay-  
ment  
R’000  
Other  
R’000  
Total  
R’000  
  2010                  
  NC Wentzel   655   500   21   65   9   —   —   1 250  
  G Pretorius   2 828   2 887   50   313   17   3 0651   7 1132   16 273  
  BP Gallagher   1 877   825   120   201   22   —   —   3 045  
  GJ Oosthuizen   1 648   875   108   173   21   —   —   2 825  
  DJ Rawlinson   1 799   1 175   102   191   58   —   —   3 325  
    8 807   6 262   401   943   127   3 065   7 113   26 718  
  2009                  
  G Pretorius   3 291   1 000   98   342   19       4 750  
  BP Gallagher   1 667   500   139   184   20       2 510  
  GJ Oosthuizen   1 504   500   108   159   19       2 290  
  DJ Rawlinson   1 645   500   102   174   59       2 480  
    8 107   2 500   447   859   117       12 030  
 
1 Mr Pretorius had accumulated leave in terms of Reunert policy until 2001. The amount reflects the payment for such leave. (The practice of accumulation was discontinued in Reunert in 2002.)  
2 The board, with Mr Pretorius’ active support, initiated the process of finding a successor for him, in advance of his retirement date. A successor was identified by the board a year before Mr Pretorius’s employment contract ended. Consequently he was entitled to receive a severance benefit, which is contractually determined.  
   
  NON-EXECUTIVE DIRECTORS           Company  
                Total paid for the year  
(all directors’ and  
committee fees) 
                2010  
R’000  
2009  
R’000  
  TS Munday               506   228  
  BP Connellan               193   178  
  KS Fuller (resigned 2 February 2010)          75   208  
  SD Jagoe               244   231  
  KJ Makwetla               150   108  
  TJ Motsohi               117   108  
  KW Mzondeki (appointed 1 November 2009)        177   —  
  NDB Orleyn               154   108  
  MJ Shaw (resigned 2 February 2010)        96   366  
  JC van der Horst               166   154  
  R van Rooyen (appointed 1 November 2009)        198   —  
                2 076   1 689  
                   
  SHARE OPTIONS – EXECUTIVE DIRECTORS              
        Balance of  
unexercised  
share  
options  
as at  
1 October  
2009  
Number of  
options  
granted  
during the  
year  
Balance of  
unexercised  
share  
options  
as at 30  
September  
2010  
Option  
price  
R  
Date of  
allocation  
Date from  
which  
exercisable  
  NC Wentzel       —   200 000   200 000   59,06   2/8/2010   2/8/2013  
  G Pretorius       120 000     3   41,90   29/8/2005   29/8/2008  
        100 000     3   39,30   18/6/2009   18/6/2012  
  BP Gallagher       50 000     50 000   41,90   29/8/2005   29/8/2008  
        50 000     50 000   39,30   18/6/2009   18/6/2012  
  GJ Oosthuizen       50 000     50 000   41,90   29/8/2005   29/8/2008  
        50 000     50 000   39,30   18/6/2009   18/6/2012  
  DJ Rawlinson       60 000     60 000   41,90   29/8/2005   29/8/2008  
        50 000     50 000   39,30   18/6/2009   18/6/2012  
        530 000   200 000   510 000        
  3 The closing balance of share options does not include the R41,90 and R39,30 shares of G Pretorius as he resigned from the board on 2 August 2010.  
   
  No options were exercised during the year by executive directors.  
   
  A loan granted to GJ Oosthuizen to finance options exercised during 2008 to purchase 33 400 shares at a strike price of R15,99 per share was not fully repaid by the end of the financial year. The shares are held as security until the loan has been repaid.  
 

None of the directors’ service contracts expressly provide for a notice period and in the circumstances that such service contracts are terminable on reasonable notice, the notice period will be less than one year.  

 

A predetermined compensation on termination of service will be payable to executive directors in line with circumstances which would ordinarily give rise to an obligation requiring an employer to pay severance pay in terms of the provisions of the Labour Relations Act, 1995 or the Basic Conditions of Employment Act, 1997. In such event, a severance package shall be equal to the multiple of the relevant individual’s monthly remuneration, such multiple ranging between 12 and 36 months. However, the multiple is limited to the number of months that remains from the termination date to the date on which the relevant individual would have reached his normal retirement age. This payment is calculated by reference to the relevant individual’s cash earnings plus the value of medical aid, pension contributions and pensionable service, group life and permanent health insurance benefits and the performance bonus earned by the employee in the preceding year. In addition, the relevant employee will be granted permission to exercise share options and to repay loans which may be due to a share purchase scheme.