Schedule 2 share incentive plan (SIP): Types of award: Free shares: Performance allowances – Method 1
Under Method 1:
- at least 20% of the shares must be awarded to employees without reference to performance but on a same terms basis, and
- the remaining shares are awarded by reference to performance.
The highest number of shares awarded to an individual by reference to performance must not be more than four times the highest number awarded to that individual without reference to performance (paragraph 41).
If shares of different classes are to be awarded, the requirements above apply separately to each class. In this context ‘class’ should be interpreted broadly to ensure that participants are treated fairly (although the ‘same terms’ requirement reinforces the point).