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MultiChoice South Africa Holdings Proprietary Limited
Integrated annual report 2018
Corporate governance review
(continued)
•
The committee may apply judgement and
shall have discretion to make appropriate
adjustments to an individual’s annual bonus
to ensure it reflects the underlying financial
performance of the company.
•
When determining the targets used for our
annual performance incentive plan, we take
into account a number of reference points
including the board-approved business
plan and historic performance.
h
Long-term incentives:
•
Longer-term incentive awards comprise a
meaningful portion of total compensation
and are designed to incentivise the delivery
of sustainable long-term growth and
provide alignment with our shareholders.
•
Awards are normally granted annually to
the executive directors under two types
of longer-term incentive scheme:
–
share appreciation rights (SARs), and
–
share options (SOs).
•
Detailed scheme rule documents provide
for the operation and governance of each
scheme.
•
SARs:
–
awards to executive directors are made
in the MultiChoice SARs scheme, which
takes into account the performance of
the MultiChoice business
–
SARs deliver value based on the growth
in the valuation of the business over a
specified time period with vesting over
a three- to five-year time period, with
a term of 10 years, and
–
any value delivered is based on the
change in total value of the business.
TCTC. These benefits seek to support the
overall physical and mental wellness of our
employees.
h
Fixed pay is reviewed annually, and any
increases are typically effective from 1 April
each year.
h
A number of factors are taken into account
during the review process, including personal
performance, the scope and nature of the
role, relevant companies in the national
media and technology sectors, and local
economic indicators such as inflation and the
relevant labour market, to ensure they are fair,
sensible and market competitive.
Variable pay
h
Short-term incentives:
•
Participants are eligible to receive awards
under the discretionary annual
performance-related incentive scheme to
incentivise and recognise the achievement
of company financial and operational
objectives and personal performance.
•
The purpose of the annual incentive
plan is to ensure executive alignment with
and focus on the annual board-approved
business plan. The achievement of these
annual plans will cumulatively drive
long-term shareholder value.
•
The performance measures for each
executive director are tailored to their roles
and responsibilities.
•
The annual bonus opportunity for each
executive is agreed annually in advance of
the financial year, and any payout is based
on targets that are verifiable and aligned to
the business plan, risk management policy
and strategy.
•
Any payouts are made in cash.
Remuneration report
(continued)
for the year ended 31 March 2018