Forfeitable share plan (‘FSP’) reserve

The Company granted 490 215 (2015: 558 478) forfeitable shares at a weighted average grant date fair value of R128.34 (2015: R127.69), of which 172 462 (2015: 185 257) shares were forfeited and 308 790 (2015: 378 216) vested during the year. The expense recognised amounted to R29 million (2015: R24 million). R41 million (2015: R50 million) of the dividend declared was offset against the FSP reserve. Refer to Note 17.1.1 of the consolidated annual financial statements for further details with regards to the scheme.

The Company is responsible to procure the settlement of the benefits in terms of the FSP to the participants employed by its subsidiaries participating in the scheme (‘Employer Companies’) on award date. The Employer Companies have the obligation to reimburse the Company for such settlement upon the award being made. The up-front reimbursement received from the Employer Companies is treated as an advance distribution received and deferred as a liability (Note 10), which is amortised to zero over the vesting period as the IFRS 2 reserve is recognised. The staff costs relating to the Employer Companies’ employees are expensed by each of the individual Employer Companies.