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51% of employees in South Africa belong to bargaining
units. Remuneration is based on annual negotiations
between the companies in the Group and the respective
unions. A 7.5% increase, effective 1 July 2016, was agreed
in South Africa
Permanent employees receive a total
remuneration package which is reviewed annually.
Pay increases are determined according to:
• relevant experience and expertise
• market benchmarks
• Company performance
• CPI; and
• affordability
PERMANENT EMPLOYEES
These individuals are occasionally required by certain
business units in order to cope with supply demands
during peak periods and are remunerated on an hourly
basis
Employees on fixed term contracts receive a
total remuneration package which is similar to
permanent employees at the same level
FIXED TERM CONTRACT EMPLOYEES
TEMPORARY WORKERS
EMPLOYEE TYPES
BARGAINING UNIT EMPLOYEES
Long-term incentives
EQUITY
Qualification
Executives, key management and other critical employees in the Group.
Number of participants
42
Vesting
One-third of the options becoming vested on each of the third, fourth and fifth anniversaries of the relevant grant date.
Expiry
Ten years from the grant date if not exercised.
PHANTOM
Qualification
Executives, key management and other critical employees in the Group.
Number of participants
55
Vesting
One-third of the options becoming vested on each of the third, fourth and fifth anniversaries of the relevant grant date.
Expiry
Six years from the grant date if not exercised.
TIGER BRANDS BLACK MANAGERS SHARE TRUST
Qualification
In terms of the Tiger Brands Limited BEE transaction implemented in 2005, vested rights were issued to black
managers of the Tiger Brands Group (which at that time included the Adcock Ingram Group).
Number of participants
201 remaining participants with 478 845 Tiger Brands share allocations, and 203 participants with 525 164 Adcock
Ingram share allocations.
Vesting
One-third of the options becoming vested on each of the third, fourth and fifth anniversaries of the relevant grant
date but are subject to various lock-in periods.
Expiry
September 2027
MPHO EA BOPHELO
Qualification
In 2011, Adcock Ingram concluded a R1.3 billion BBBEE transaction. All permanent black South African employees
were able to participate in the scheme. In July 2015 a revised scheme, was concluded adhering to the same principles
and qualification criteria.
Number of participants
Of the initial scheme, 2 001 employees of which 379 forfeited their allocations and 240 employees already benefited.
1 765 employees participate in the modified scheme.
Vesting
Depending on grant date, vesting could be up to four years with a lock-in period of four years.
Expiry
The scheme would end either in 2023 or in 2024 depending on whether the trust takes up option of another year.
FIVE
SIX
THREE
ONE
FOUR
TWO
OUR GOVERNANCE
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Integrated Report 2016