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REMUNERATION REPORT
COMPOSITION AND MEETINGS
The Committee consists of four non-executive directors, three of
whom are independent. Four Committeemeetings were held during
the year. The attendance of the Committee meetings was as follows:
Committee member
Meeting
attendance
PM Makwana (Chairman)
2/2*
R Morar
1/4
L Ralphs
0/2*
CD Raphiri
4/4*
MI Sacks
4/4
Invitees
AG Hall
2/2*
KB Wakeford
2/2*
B Letsoalo (Human Capital Executive)
4/4
*see changes to the Board on page 56
The Chairman of the Board chairs this Committee when constituted
as the Nominations Committee.
ROLE AND FUNCTION OF THE
COMMITTEE
The role and responsibilities of the Committee are governed by a formal
Charter which is reviewed annually and approved by the Board. The
followingdutiesareassignedto itbytheBoardduringtheyearunderreview:
•
Assist the Board in determining remuneration and performance
measures of executives and senior management;
•
Determine the remuneration policy and appropriate human
capital management policies;
•
Review the terms and conditions, at least annually, of key
executive service agreements;
•
Oversee annual performance evaluation of the Board; and
•
Assist the Board to ensure that the Board is appropriately
constituted for it to execute its role and duties effectively and that
directors are appointed through a formal, transparent process
and the induction and ongoing training and development of
directors takes place.
This report is presented by the Company’s Human Resources, Remuneration and Nominations Committee (the Committee), appointed by the
Board in respect of the year ended 30 June 2016.
REMUNERATION PHILOSOPHY
Our remuneration philosophy is governed by the principles of
equity, fairness and affordability. Its primary objective is to:
•
Provide competitive and equitable remuneration based on an
employee’s skills, performance and contribution to the group
strategy;
•
Attract, motivate and retain the talent necessary to attain the
group objectives in line with organisational culture and values;
•
Develop a sense of ownership and ensure employees’ interests
are aligned to the shareholders; and
•
Provide opportunities for the potential of greater financial
and non-financial rewards to those who achieve excellent
performance in their respective roles.
REMUNERATION STRUCTURE
Adcock Ingram has an integrated remuneration and rewards model
which includes guaranteed remuneration, short-term incentives and
long-term incentives.
All elements of remuneration are subject to periodic evaluation and
are reviewed in line with:
•
Healthcare industry;
•
Market benchmarks and trends;
•
Legislative framework; and
•
Group performance.
The Remuneration Committee endeavours to ensure that each
director and executives are remunerated fairly and responsibly and
that the disclosure of a director’s remuneration is accurate, complete
and transparent.
FOCUS AREA FOR 2015/2016
•
The short-term incentives’ performance metrics entrenched
across all Business Units ;
•
Talent management and succession planning for executive team
rolled out;
•
Benchmarked remuneration policy against peer group;
•
Addressed anomalies in different salary bands; and
•
Reviewed long-term incentives as a retention and reward
mechanism for key executives and managers.
FOCUS AREA FOR 2016/2017
•
Implement development programmes for successors in line with
transformation imperatives and business requirements;
•
Cascade talent management and succession planning to the
level below executives; and
•
Review flexibility and relevancy of benefits to remain competitive
in the industry.
OUR GOVERNANCE
(continued)
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Integrated Report 2016