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Telkom's shareholders approved the Group share scheme at the September 2013 annual general meeting. The scheme covers certain operational
and management employees and is aimed at giving shares to Group employees, at a Rnil exercise price at the end of the vesting period. Although
the number of shares awarded to employees was communicated at the grant date, the ultimate number of shares that vest may differ based on
certain performance conditions being met (refer to note 10.7).
|
Group |
Company |
The movement within the share-based compensation reserve is: |
31 March
2023
Rm |
31 March
2023
Rm |
Balance at the beginning of the year |
1 414 |
1 238 |
1 250 |
1 128 |
Net increase in equity |
121 |
176 |
71 |
122 |
Employee cost (refer to note 3.4.4) |
121 |
176 |
36 |
80 |
Openserve share-based compensation reserve1 |
– |
– |
35 |
42 |
|
|
|
|
|
Balance at the end of the year |
1 535 |
1 414 |
1 321 |
1 250 |
1 |
From 1 September 2022, Openserve is a 100% owned subsidiary of the Group. For shares granted before 1 September 2022, where Openserve does not have an obligation to pay
for the shares, it has been assessed that these shares need to be equity‑settled in Telkom Company. This is because Telkom has the obligation to settle for the services rendered
to Openserve. For services rendered by the Openserve employees post the carve-out date, the share-based compensation reserve was increased in the current financial year by
R35 million (31 March 2023: R42 million) with the corresponding entry to the investment in Openserve. |
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