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MultiChoice South Africa Holdings Proprietary Limited
/
Integrated annual report 2017
CORPORATE GOVERNANCE REVIEW
(CONTINUED
)
REMUNERATION REPORT
(CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
Remuneration is reviewed annually, with
reference to competitors and companies of
similar size. Independent advice is acquired to
assist the committee. This remuneration is not
linked to the company’s performance. Non-
executive directors do not qualify for shares
in terms of the group’s incentive schemes.
No remuneration is paid to directors of
MultiChoice South Africa Holdings. The board
annually recommends remuneration of
non-executive directors for approval by
shareholders in advance.
In remunerating executives, the group aims to
attract, motivate and retain competent and
committed leaders in its drive to create
sustainable shareholder value. We aim to
recognise top performance and attract
entrepreneurs and the best creative engineers
and employees to grow the value of the group.
The remuneration policy strives to meet this
objective. Accordingly, the focus is not primarily
on the guaranteed annual remuneration
package, but on individual incentive plans
linked to creating shareholder value.
MultiChoice usually structures packages on a
total cost-to-company basis (which incorporates
base pay, car allowance, pension, medical aid
and other optional bene ts). In addition, most
executives qualify for individual and/or team
performance incentives. At senior level, we
avoid standardised packages and aim to tailor
compensation structures to the needs of the
speci c business. Remuneration packages
are reviewed annually and are monitored
and compared with reported figures for
similar positions to ensure they are sensible.
In some cases, independent consultants
provide benchmarks.
ANNUAL BONUS
Most executives have an annual cash bonus
scheme that may comprise a variable
component based on surpassing nancial and
operational objectives, as well as xed amounts
for achieving speci c, discrete objectives.
The incentive for each executive is agreed
annually in advance. Incentives are based on
targets that are veri able and aligned to the
business plan, risk management policy and
strategy. If targets are not met, no bonus is paid.
LONG-TERM INCENTIVES
Long-term incentives are generally share-based
incentive schemes. These awards normally vest
over five years and must be exercised within
ten years from date of grant. The shares/
appreciation rights are not free. The employee
is offered the share/appreciation right at market
value on the day of the award. Employees
bene t only if they, together with colleagues
in that unit, can create additional value above
the value on the date of issue.
The remuneration and equity committee annually
reviews share awards. In addition, if the
company employs people during the year, the
committee may decide to make awards to those
individuals. No awards of shares/appreciation
rights are made in a closed period for trading,
backdating of awards is prohibited, and there
is no repricing and automatic regranting of
underwater shares/appreciation rights.