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MultiChoice South Africa Holdings Proprietary Limited
Integrated annual report 2018
83
Corporate governance review
(continued)
•
SOs:
–
awards are made based on the share
price on the date of the grant
–
Naspers SOs deliver value based on the
growth in the share price over a specified
time period with vesting typically over a
one- to four-year period, with a term of
10 years
–
value is only delivered if there has been
an increase in the share price following
the date of grant, and
–
once an award vests, participants
can then buy company shares at the
predetermined strike price and will gain
value from any increase in the price.
Pay for performance
(a) Pay for performance is one of the pillars
of our reward philosophy. Personal
performance (including the financial results
of the business) is the determining factor
whether an individual receives a TCTC
increase, an annual performance-related
incentive payout and/or a long-term
incentive in the form of SOs or SARs.
(b) Our executives are eligible to participate
in a performance-related short-term
incentive programme. This is an annual
programme and having achieved certain
preapproved business and personal
goals, participants may receive an annual
performance-related incentive payment.
(c) Performance goals are directly aligned
with the approved business plans.
(d) Personal goals are arrived at as an
outcome of the annual business planning
process. As budgets and operating plans
are designed prior to the end of the
financial year, so too are the personal
performance goals at an individual level.
These goals, if achieved, drive the
accomplishment of the financial and
operating plan of the business and how
it is delivered.
(e) We encourage managers to engage
in continuous conversations with their
people throughout the year to ensure
that their plans are on track. At the end
of the financial year both the overall
performance of the business, and the
individual’s achievement of their personal
goals are considered and this may
translate into the payment of an annual
performance-related incentive. While we
do not force-rank performance scores,
we do expect that any performance-
related incentive payments reflect the
overall performance of the business
where appropriate. Individuals who have
performed well against their performance-
related incentive goals, are eligible to be
considered for a long-term incentive grant
and a pay increase.
Remuneration report
(continued)
for the year ended 31 March 2018