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MultiChoice South Africa Holdings Proprietary Limited
Integrated annual report 2018
Corporate governance review
(continued)
Remuneration report
(continued)
for the year ended 31 March 2018
Our strategic intent for pay
Our pay decisions are driven by the following
principles:
1. We believe in pay for performance; we are
comfortable with bigger rewards for those
who make the highest contribution.
2. Remuneration must be aligned with
shareholder outcomes.
3. Remuneration must incentivise the
achievement of strategic, operational and
financial objectives, in both the short and
long term.
4. We strive to be consistent; our reward
package elements are broadly the same
across different levels.
5. Our reward systems must help attract
and retain the best talent in our market,
in a fair and responsible way.
In practice, this means that we take into
account market practices, as well as the
needs of the business and the calibre of
the individual when implementing our pay
framework. We benchmark our pay using
the PricewaterhouseCoopers Inc. (PwC)
Remchannel and PE Corporate executive
surveys for South Africa. We broadly position
pay at the median of the market and for
scarce skills and high performers we will
consider a range at the upper quartile.
The way we structure pay is purposely linked
to our strategy and the delivery of long-term
sustainable growth to our shareholders.
Our pay principles are applied through three
key elements:
h
Guaranteed pay (total cost to company or
TCTC):
This is guaranteed pay comprising
salary plus cash and non-cash benefits.
h
Short-term incentive:
Annual incentive plan
that pays out depending on performance
achieved against strategic, operational and
financial objectives.
h
Long-term incentive:
A longer-term incentive
that pays out based on the growth in value of
the business at a MultiChoice SA and
Naspers level.
Executive pay is weighted towards variable
pay (short- and long-term incentives) with
every award subject to individual
performance.
Our approach to long-term incentives ensures
that the executives' reward is directly linked to
the growth in shareholder value. Executives
only receive payouts under our long-term
incentive plan when the value of the
underlying asset increases.
When making executive pay decisions, we
consider the individual’s performance and
the performance of the business.