B) RESTRICTED SHARE UNITS Under the RSU plan, certain employees are eligible to receive an award in the form of RSUs. Each RSU entitles the employee to receive the cash equivalent of the market value of our common shares at the vesting date. Throughout the vesting period, common share dividend equivalents accrue to the employee in the form of additional units. RSUs vest on each anniversary of the grant in equal one-third instalments over a period of three years. Salary expense is recognized over the vesting period except where the employee is eligible to retire prior to the vesting date, in which case the expense is recognized between the grant date and the date the employee is eligible to retire.
During the year, salary expense of $9,545 (2020 – $9,782) was recognized related to RSUs. As at October 31, 2021, the liability for the RSUs held under this plan was $14,833 (October 31, 2020 – $8,992). At the end of each period, the liability is adjusted to reflect changes in the fair value of the RSUs.
Number of RSUs
2021
2020
Balance at beginning of year
765,036 304,946 (353,356)
675,196 456,787 (323,063)
Granted
Vested and paid out
Forfeited
(29,426)
(43,884)
Balance at End of Year
687,200
765,036
C) PERFORMANCE SHARE UNITS Under the Performance Share Unit (PSU) plan, certain employees are eligible to receive an award in the form of PSUs on an annual basis. At the time of a grant, each PSU represents a unit with an underlying value equivalent to the value of a common share. Throughout the vesting period, common share dividend equivalents accrue to the employee in the form of additional units. Under the PSU plan, each PSU vests at the end of a three-year period and is settled in cash.
At the end of each specified performance period, a multiplier based on performance targets set at grant date is applied to a portion of the PSUs originally granted and any accrued notional dividends such that the total value of the PSUs may vary from 0% to 200% of the value of an equal number of our common shares.
During the year, salary expense of $4,709 (2020 – $945) was recognized related to PSUs. As at October 31, 2021, the liability for the PSUs held under this plan was $6,246 (October 31, 2020 – $2,898). At the end of each period, the liability and salary expense are adjusted to reflect changes in the fair value of the PSUs.
Number of PSUs
2021
2020
Balance at beginning of year
200,681 146,465 (50,411) (11,319)
185,370
Granted
77,563
Vested and paid out
(57,734)
Forfeited
(4,518)
Balance at End of Year
285,416
200,681
D) DEFERRED SHARE UNITS Under the DSU plan, non-employee directors receive a portion of their retainer in DSUs. Each DSU represents a unit with an underlying value equivalent to the value of one common share. The DSUs are not redeemable until the individual is no longer a director and must be redeemed for cash. Common share dividend equivalents accrue to the directors in the form of additional units. The expense related to the DSUs is recorded in the period the award is earned by the director.
During the year, other non-interest expenses included $1,810 (2020 – $1,330) related to the DSUs. As at October 31, 2021, the liability for DSUs held under this plan was $10,707 (October 31, 2020 – $6,330). At the end of each period, the liability and expense are adjusted to reflect changes in the market value of the DSUs.
Number of DSUs
2021
2020
Balance at beginning of year
258,386
197,211
Granted Paid out
53,355
61,175
(41,303)
-
Balance at End of Year
270,438
258,386
18. NON-CONTROLLING INTERESTS
Non-controlling interests relate to the following:
As at October 31 2021
As at October 31 2020
CWB McLean & Partners Wealth Management Ltd .
$
- $
862
During the year ended October 31, 2021, we acquired all shares of the non-controlling interests in CWB McLean & Partners Wealth Management Ltd.
100 | CWB Financial Group 2021 Annual Report
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