for the year ended 30 September

Notes to the annual financial statements

 
24.   Directors’ remuneration and interests  
  Payable to the directors of the company by the company and its subsidiaries for services as directors:  
    Salary  
R’000  
Bonus  
and  
perfor-  
mance  
related  
pay-  
ments  
R’000  
Travel  
allow-  
ances  
R’000  
Retire-  
ment  
contri-  
butions  
R’000  
Medical  
contri-  
butions  
R’000  
Leave  
payment  
R’000  
Other  
R’000  
Sub  
total  
R’000  
Gains on  
options  
exercised  
R’000  
Total  
R’000  
  Executive directors                      
  2011                      
  NC Wentzel   3 839   1 800   126   389   58   –   12 0001   18 212   –   18 212  
  BP Gallagher   2 159   875   –   217   24   –   –   3 275   1 120   4 395  
  MC Krog2   451   300   16   35   –   –   –   802   –   802  
  GJ Oosthuizen   1 805   –   108   189   23   –   –   2 125   1 130   3 255  
  DJ Rawlinson   2 029   875   60   209   52   –   –   3 225   1 344   4 569  
    10 283   3 850   310   1 039   157   –   12 000   27 639   3 594   31 233  
                       
  2010                      
  NC Wentzel   655   500   21   65   9   –   –   1 250   –   1 250  
  G Pretorius   2 828   2 887   50   313   17   3 065   7 113   16 273   –   16 273  
  BP Gallagher   1 877   825   120   201   22   –   –   3 045   –   3 045  
  GJ Oosthuizen   1 648   875   108   173   21   –   –   2 825   –   2 825  
  DJ Rawlinson   1 799   1 175   102   191   58   –   –   3 325   –   3 325  
    8 807   6 262   401   943   127   3 065   7 113   26 718   –   26 718  
 
1 NC Wentzel and the company reached mutual agreement that he would leave the employment of the company on 21 September 2011. In this regard he was paid severance benefits of R12,0 million.
2 MC Krog was appointed to the board on 21 September 2011 and her remuneration includes that earned as a prescribed officer from 15 July 2011 as well as that as a director from appointment date.
   
      Company
      Total paid for the year
(all directors’ and committee fees)
      2011  
R’000  
  2010  
R’000  
  Non-executive directors          
  TS Munday     643     506  
  BP Connellan (retired 8 February 2011)    64     193  
  YZ Cuba (appointed 1 January 2011)    206     –  
  KS Fuller (retired 2 February 2010)    –     75  
  SD Jagoe     377     244  
  KJ Makwetla (retired 8 February 2011)    55     150  
  TJ Motsohi     154     117  
  KW Mzondeki (appointed 1 November 2009)    237     177  
  NDB Orleyn     252     154  
  SG Pretorius (appointed 22 February 2011)    181     –  
  MJ Shaw (retired 2 February 2010)    –     96  
  JC van der Horst     250     166  
  R van Rooyen (appointed 1 November 2009)    334     198  
      2 753     2 076  

    Salary  
R’000  
Bonus and  
perfor-  
mance  
related  
payments  
R’000  
Travel  
allow-  
ances  
R’000  
Retire-  
ment  
contri-  
butions  
R’000  
Medical  
contri-  
butions  
R’000  
Leave  
payment  
R’000  
Other  
R’000  
Sub  
total  
R’000  
Gains on  
options  
exercised  
R’000  
Total  
R’000  
  Prescribed officers                      
  2011                      
  Officer A   1 031   –   80   151   34   271   1 456   3 023   6 951   9 974  
  Officer B   1 506   1 728   24   143   49   –   6   3 456   1 244   4 700  
  Officer C   1 226   2 200   38   120   68   –   6   3 658   –   3 658  
  Officer D   1 153   1 400   60   123   58   –   6   2 800   –   2 800  
  Officer E   930   1 262   120   167   70   –   –   2 549   –   2 549  
  Officer F   887   1 165   111   154   36   –   –   2 353   –   2 353  
    6 733   7 755   433   858   315   271   1 474   17 839   8 195   26 034  
  Top three executives’ remuneration  
  King III recommends that the remuneration of the top three executives, excluding executive directors and prescribed officers, be disclosed. Due to their specialised skills and the competition for top skills in South Africa, Reunert does not wish to disclose the names of these individuals. However, their remuneration is tabled below:  
 

2011  

R’ 000  
  Employee A   4 903  
  Employee B   2 684  
  Employee C   2 573  
    10 160  
 

Share options  

               
    Balance  
of  
unexercised  
share  
options  
as at  
1 October  
2010  
Number  
of  
options  
granted  
during  
the year  
Number  
of  
options  
exercised  
during  
the year  
Balance of  
unexercised  
share options  
as at  
30 September  
2011  
Option  
price  
R  
Market  
price  
on  
exercising  
R  
Date of  
allocation  
Date of  
exercising  
Date from  
which  
exercisable  
  Executive directors                    
  BP Gallagher   50 000     (50 000)  –   41,90   64,30   29/8/2005   18/11/2010   29/8/2008  
    50 000       50 000   39,30     18/6/2009     18/6/2012  
      48 000     48 000   59,55     17/2/2011     17/2/2014  
  GJ Oosthuizen   50 000     (50 000)  –   41,90   64,50   29/8/2005   25/11/2010   29/8/2008  
    50 000       50 000   39,30     18/6/2009     14/10/2011  
      42 000     42 000   59,55     17/2/2011     14/10/2011  
  DJ Rawlinson   60 000     (60 000)  –   41,90   64,30   29/8/2005   18/11/2010   29/8/2008  
    50 000       50 000   39,30     18/6/2009     18/6/2012  
      47 000     47 000   59,55     17/2/2011     17/2/2014  
    310 000   137 000   (160 000)  287 000            
  The share options above do not include the 200 000 share options at R59,06 and the 110 000 share options at R59,55 shares of NC Wentzel as he resigned from the board on 21 September 2011. In terms of the mutual separation agreement with the company, he had until 23 October 2011 to early exercise his options, which he did not and therefore the options were forfeited on that date.

In terms of the mutual separation agreement between GJ Oosthuizen and the company, he may exercise his options any time up to 14 October 2013.

Subsequent to year-end 50 000 of the options have been exercised, yielding a gain of R1,1 million.

During the year BP Gallagher and GJ Oosthuizen were granted loans to finance options exercised to purchase 50 000 shares each at a strike price of R41,90 per share and these loans were not fully repaid by the end of the financial year. The shares are held as security until the loan has been repaid.

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 twelve and thirty six 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.