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04
Transparency and accountability
Remuneration
report
Remuneration
structure
– continued
LTIs
Introduction
The plan is designed to support the principle of alignment between
management and shareholder interests, with the ultimate aim of ensuring
growth in shareholder value. The objectives are to motivate long-term
sustainable performance, align the interests of top management with those of
shareholders, and retain business-critical and top talented employees.
In terms of the forfeitable share plan (FSP), a free transfer of shares is
awarded to employees, under the condition of forfeiture in the case of
termination of service before the vesting/release date; and achievement of
the company’s pre-determined performance levels.
From the grant date, the employee has shareholder rights in respect of the
forfeitable shares to receive dividend rights and voting rights. TheTelkom LTI
plan is an FSP, which has two components:
> LTI plan component (senior leadership, M3 to M0)
> ESOP component (middle management and bargaining unit, A to M/S4)
Vesting of awards
Vesting period: LTI Plan
Award
(M3 - M0)
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
Total
FY2013
50%
30%
20%
100%
FY2014
50%
30%
20%
100%
FY2015
50%
30%
20%
100%
FY2016
50%
30%
20%
100%
Total
50%
80%
100%
100%
50%
20%
Vesting period: ESOP
Award
(A - M4)
FY2016
FY2017
FY2018
FY2019
Total
FY2013
100%
100%
FY2014
100%
100%
FY2015
100%
100%
FY2016
100%
100%
Total
100%
100%
100%
100%
Telkom’s share incentive
plans are structured to
optimise the company’s
overall position, while
providing benefits that
will assist the company
to attract, retain and
incentivise executives and
top talented employees.
LTI
Long-term incentives
>
LTI Plan
>
ESOP
LTI plan component
(M3 – M0)
ESOP
(A – M4)
The performance conditions are measured after three years and the number of shares to vest is based on the extent to
which the performance conditions are met.