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REMUNERATION REPORT
(CONTINUED)
VARIABLE (NON-GUARANTEED) REMUNERATION
Variable compensation is offered to attract and retain exceptional talent and to inculcate a culture of superb performance and achievement of
strategic objectives.
Non-guaranteed remuneration in South Africa consists of the following:
•
Sales commission;
•
Short-term incentives; and
•
Long-term incentives
SALES COMMISSION
Qualification
Sales employees.
Objective
Encourage achievement of sales targets.
Methodology
Sales employees are incentivised for achieving sales which are reviewed quarterly to ensure
parity with business unit targets.
Progress
Approximately R30.6 million was paid towards sales incentives during the year.
SHORT-TERM INCENTIVES
Qualification
Executives, key management and other critical employees in the Group.
Objective
Motivates and rewards achievement of business and individual performance and keeps
employees’ focus on the defined business imperatives whilst driving performance and
retaining key talent.
Methodology
Rewards employees for achieving key performance targets, based on Group and Business Unit
metrics criteria, as agreed upon at the beginning of each financial year. These pre-determined
performance targets for the 2016 financial year included:
•
Return on funds employed;
•
Trading profit;
•
Service level agreements;
•
Order infill rate; and
•
Expense management.
Progress
During the year under review targets were achieved and approximately R27 million will be paid
to 46 qualifying employees in September 2016.
LONG-TERM INCENTIVES
Qualification
Various share options schemes exist in the Group and have been implemented for specific
purposes.
Objective
Drive sustainable longer term performance;
Retention of critical skills by linking performance to long-term value creation;
Instil loyalty and ownership by aligning interest of key employees to those of the Group and
shareholder interest; and
Reward participants for medium to longer term Company performance.
Performance metrics
No performance metrics are applicable.
Methodology
This differs from scheme to scheme as detailed on the next page.
OUR GOVERNANCE
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Integrated Report 2016