Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Codes of Good Practice on Black Economic EmpowermentCode Series 100: Measurement of the Ownership Element of Broad-Based Black Economic EmpowermentStatement 103 : Recognition of Equity equivalents for multinationalsAnnexe 103(A) |
This formula is for determining the Ownership Score under an Equity Equivalent Programme using either of the targets in paragraph 5.2, where the contribution is made upfront on a once off basis.
A = B x 20 C |
Where:
A is ownership points of the Multinational in any year arising from its equity equivalent contribution.
B is the value of contributions made.
C is the financial value of the target of 4% of total revenue from its South African operations annually over the period of continued measures.
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This formula is for determining the Ownership Score under an Equity Equivalent Programme using either of the targets in paragraphs 5.2, where the contribution is made on an annual basis towards a ten year target is as follows:
A = B x ( 1 ) x 20 C (25% x D) |
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Where:
A is ownership points of the Multinational in any year arising from its equity equivalent contribution.
B is the value of total contributions made prior to the date of measurement.
C is the financial value of the target in paragraph 4.2.1 or the ten year value of contributions to be made over the life of this statement.
D is the time-based graduation factor outlined being:
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