The changing landscape of long-term share-based compensation in South Africa: an investigation into recent developments in employee incentive used by companies listed on the Johannesburg Stock Exchange

For several decades equity-based compensation has been used as a tool to align the incentives of company executives and employees with those of the company shareholders. For instance globally, during the 1990's, there was and explosion in the issuance of employee stock options. This served several purposes, namely - to motivate managers in the pursuit to increase company value and achieve long-term goals, as a retention tool for talented staff and also as a way for cash strapped young companies to reward employees without the need to divert cash from operating activities.The objective of this study is to examine the current long-term share-based incentive schemes used by JSE listed companies based on data from 50 large and mid cap companies. It aims to identify trends in terms of prevalent scheme types, average scheme size relative to issued share capital, settlement methods, valuation models used, construction of model inputs and the use of performance conditions.

Grantor dc:publisher.institution

Department of Finance and Tax

Year dc:date.issued

2012

Author dc:creator

• Mavrodinov, Nikolay Stefanov

Advisor dc:contributor.advisor

• Holman, Glen

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/11427/12209

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/12209