Maxis Berhad
Annual Report 2014
162
Notes to the
Financial Statements
31 December 2014
31 SHARE CAPITAL (CONTINUED)
(b) ESOS (continued)
The weighted average fair value of share options granted during the financial year ended 31 December 2013 determined using
a modified Black Scholes model was RM0.41. The key inputs into the model were:
Group and
Company
2013
Valuation assumptions:
Weighted average share price at date of grant (per share)
RM6.78
Exercise price (per share)
RM6.78
Expected volatility
10.25%
Expected share option life
6.2 years
Expected dividend yield per annum
5.2%
Risk-free interest rate per annum
3.8%
The volatility measured at the standard deviation of continuously compounded share returns is based on statistical analysis of
daily share prices since the Company’s Initial Public Offering (“Listing”).
Value of employee services received for issue of share options:
Group
Company
2014
RM’000
2013
RM’000
2014
RM’000
2013
RM’000
Share-based payment expense
2,389
4,353
2,389
4,353
Capitalised as investment in subsidiaries for share-based
payments allocated to the employees of the subsidiaries
-
-
(2,389)
(4,353)
Total expense recognised as share-based payments
2,389
4,353
-
-
(c) Incentive arrangement
Pursuant to the terms and conditions of the incentive arrangement which forms part of the employment contract for an eligible
director had entered into with the Company, where the cash incentives payable to the eligible director were used to acquire
shares from the open market. During the financial year, 687,175 shares of the Company were acquired from the open market,
and are currently held by CIMB Commerce Trustee Berhad or its nominee. Subject to fulfilment of vesting conditions and the
terms of the incentive agreement, these shares will vest in the eligible director on a deferred basis, in accordance with the
terms and conditions of the said incentive arrangement. In addition to the eligible director’s interest in these shares, the eligible
director is also deemed interested in such additional number of shares in the Company which shall only be determinable in the
future, to be acquired using future cash incentives payable to the eligible director, pursuant to the terms and conditions of such
incentive arrangement.
