BIMB Integrated Annual Report 2019

27 EMPLOYEE BENEFITS Share-based payments arrangement of Takaful Malaysia At the Extraordinary General Meeting of Takaful Malaysia, held on 24 July 2013, the shareholders approved the establishment of a Long Term Incentive Plan (“LTIP”), which comprises a Restricted Share Plan (“RSP”) and a Performance Share Plan (“PSP”), of not more than 10% of issued and paid-up share capital of Takaful Malaysia (excluding treasury shares) to eligible employees and executive directors of Takaful Malaysia. The LTIP was effected on 25 July 2013 following the submission of the By-Laws for the LTIP to Bursa Malaysia Securities Berhad, the receipt of all required approvals and the compliance with the requirements pertaining to the LTIP. During the year, the number of the shares in Takaful Malaysia granted are as follows: Number of Ordinary Shares 2019 2018 (‘000) (’000) Performance shares Outstanding at 1 January 7,668 6,387 Granted during the year 2,750 3,124 Vested during the year (2,574) (1,073) Forfeited during the year (521) (770) Outstanding at 31 December 7,323 7,668 During the financial year, 2,574,163 shares (2018: 1,072,500 shares) in Takaful Malaysia were exercised. The fair value in Takaful Malaysia services received in return for Restricted Shares and Performance Shares granted are based on the fair value of Restricted Shares and Performance Shares granted respectively, measured using Monte Carlo Simulation, with the following inputs: Performance shares 2019 2018 Fair value and assumption Fair value at grant date 6.584 3.550 Weighted average share price 6.584 3.550 Share price at grant date 7.020 3.850 Expected volatility (weighted average volatility) 21.38% 21.35% Option life (expected weighted average life) 3 3 Expected dividends 0.0358 0.0454 Risk-free profit rate (based on Malaysian government bonds) 3.31% 3.55% NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 247 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary