| EXECUTIVE SHARE OPTION ALLOCATION
The Group announced on the Stock Exchange News Service (SENS)
of the JSE Limited on Wednesday 7 March 2007 that agreement had been reached
to issue a grant of options to selected executive directors and senior
executives on a once-off restricted basis. A great deal of thought and
consideration has been applied to the development of this scheme, its
purpose and possible implications.
The Holdings Board officially signed-off Rebuilding Murray & Roberts
in December 2006 at a share price of 4000 cents, representing a compound
growth rate of 50% per annum over the period since July 2000. In the last
two months alone, the share has increased a further 35% and we delivered
very good financial results in our half-year to 30 December 2006.
We now look forward to a new future Globalising Murray & Roberts and
more specifically, delivering our performance promise Murray & Roberts
2010. We have built a formidable performance platform from which to engage
the future potential of all our markets and we have a talented executive
leadership team to deliver that performance.
It is important for me that there is clarity and understanding of the
conditions and implications of this particular grant of options. Nothing
in life is free.
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The first tranche of options is only available to the participants
in four years time; |
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The collective cost of the options granted is R 280 million and
the participants are obliged to pay their proportionate share of this
amount if and when they decide to exercise their options between March
2011 and March 2013; |
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Any gain in the share price between now and a participants decision
to exercise options will result in remuneration to the participant
and will be taxed at the current rate of 40%; |
The participants selected for this scheme have the highest
level of collective responsibility to deliver the performance of Murray
& Roberts over the next five to six years. They are accountable to
the Group, its shareholders and all employees to secure that performance
in a market that promises all the opportunity needed for the sustainable
earnings growth and value creation we all aspire to.
Brian Bruce
- SENS Release |
