SEC Filings

20-F
WNS (HOLDINGS) LTD filed this Form 20-F on 05/16/2018
Entire Document
 


Table of Contents

WNS (HOLDINGS) LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands, except share and per share data)

 

Performance share units

The 2006 Incentive Award Plan and 2016 Incentive Award Plan also allow for grant of performance share units (“PSUs”). Each PSU represents the right to receive one ordinary share-based on the Company’s performance against specified non-market performance condition and vests over a period of three years.

Movements in the number of PSUs outstanding under the 2006 Incentive Award Plan and the 2016 Incentive Award Plan and their related weighted average fair values are as follow:

 

     Shares      Weighted
average
fair value
     Weighted
average
remaining
contract term
(in years)
     Aggregate
intrinsic
value
 

Outstanding as at March 31, 2016

     951,588      $ 17.83        7.77      $ 29,157  

Granted

     422,062        31.12        

Exercised

     (141,741      14.11        

Forfeited

     (47,057      26.27        
  

 

 

          

Outstanding as at March 31, 2017

     1,184,852      $ 21.00        7.36      $ 33,899  

Granted

     400,463        30.35        

Exercised

     (506,660      16.79        

Forfeited

     (18,681      29.38        
  

 

 

          

Outstanding as at March 31, 2018

     1,059,975        26.36        7.51        48,048  

PSUs exercisable

     194,629      $ 18.14        5.86      $ 8,823  

The fair value of PSUs is generally the market price of the Company’s shares on the date of grant, and assumes that performance targets will be achieved. As at March 31, 2018, there was $8,634 of unrecognized compensation cost related to unvested PSUs, net of forfeitures. This amount is expected to be recognized over a weighted average period of 2.2 years. Over the performance period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as expense will be based on a comparison of the final performance metrics to the specified targets.

The weighted average grant date fair value of PSUs granted during the years ended March 31, 2018, 2017 and 2016 was $30.35, $31.12, and $20.12 per ADS, respectively. The aggregate intrinsic value of PSUs exercised during the year ended March 31, 2018, 2017 and 2016 was $17,737, $4,237 and $532, respectively. The total grant date fair value of PSUs vested during the year ended March 31, 2018, 2017 and 2016 was $8,696, $6,280 and $Nil, respectively.

The weighted average share price of PSU exercised during the year ended March 31, 2018, 2017 and 2016 was $35.01, $29.89 and $29.45, respectively.

BBBEE program in South Africa

During the year ended March 31, 2018, the Company’s South African subsidiary issued share appreciation rights to certain employees to be settled with the Company’s shares on the fourth anniversary of the grant date. As part of the settlement, the Company has granted 32,050 RSUs which shall vest on the fourth anniversary of the grant date, subject to such grantee’s continued employment with the Company through the applicable vesting date. The grant date fair value was estimated using a binomial lattice model. The total stock compensation expense in relation to these RSUs was $3,040 to be amortized over the vesting period of four years. The stock compensation expense charged during the year ended March 31, 2018 was $547.

 

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