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MultiChoice South Africa Holdings Proprietary Limited
Integrated annual report 2018
79
Corporate governance review
(continued)
Our remuneration structure
We have outlined the three elements of pay for our executive directors below. The same
principles are applied to employees across the company.
Our pay design links
to our pay principles
1. Pay for
performance
2. Shareholder
alignment
3. Incentivisation
4. Consistency
5. Attract and retain
Pay principle
1 2 3 4 5
(1) Total cost to
company
(TCTC)
h
Guaranteed pay comprising salary plus cash and
non-cash benefits
h
Personal performance is the primary driver for pay
increases
h
Set at a level to ensure we can attract and retain
talent of the required calibre
h
Take into account market practice as well as an
individual’s contribution
*
*
*
*
*
(2) Short-term
incentives
(STIs): Annual
performance-
related
incentive or
STI
h
We operate an annual incentive plan that pays out
depending on performance achieved against
strategic, operational and financial objectives
h
The purpose of the annual incentive plan is to
ensure executive alignment with and focus on the
annual business plan. The achievement of these
annual plans will cumulatively drive long-term
shareholder value
h
The same structure is applied throughout the
organisation to ensure a consistent approach with
measures linked to an individual’s role so that pay
is linked to their contribution
*
*
*
*
*
(3a) Long-term
incentives
(LTIs): Share
appreciation
rights (SARs)
h
A longer-term incentive that pays
out based on the growth in value of the business
h
Awards are made to individuals based on their
contribution to the business
h
The change in value is measured over a five-year
period to ensure focus on the long-term delivery
of shareholder value
*
*
*
*
*
(3b) LTIs:
Naspers
share
options
(SOs)
h
Longer-term awards made in Naspers share options
with payouts based on the growth in Naspers’s
share price over a four- or five-year period
(1)
h
The vesting period has been determined taking
into account practice in companies with which we
compete for talent
h
Provides long-term alignment with Naspers’s
shareholders as value is only delivered to
participants if there is an increase in the share price
*
*
*
*
*
Note
(1)
All awards made from September 2017 onwards in Naspers share options will have a four-year-phased vesting period.
Awards made prior to this time will have a five-year vesting period with vesting at the end of years three, four and five.
Remuneration report
(continued)
for the year ended 31 March 2018