INTEGRATED ANNUAL REPORT FOR MULTICHOICE SOUTH AFRICA HOLDINGS (PTY) LTD AND PHUTHUMA NATHI INVESTMENTS (RF) LTD

GOVERNANCE AND ACCOUNTABILITY remuneration is detailed in Part 2, but briefly focuses on the following: We believe in a pay-for-performance culture that incentivises achievement of strategic, operational and financial objectives, both in the short and long term We continually monitor the level of pay to ensure that it is fair to all our employees and in line with our values We believe remuneration must be aligned with shareholder expectations We structure our reward systems to help us attract and retain the best talent around the world in a responsible way We are consistent ; our guaranteed reward package elements are broadly the same across different levels. Variable pay is tailored to be appropriate for each different level Talent and fairness Our intention is to continue to grow as a top employer across our various areas of operations and presence. We focus on recruiting experienced data, digital and content talent into critical areas required to scale our business and deliver on the operating model, but we also provide opportunity for new, young talent to learn and develop. We strive to recruit and retain the best calibre of executive talent to lead the organisation and deliver the requisite results into the future. Balancing the levels of executive remuneration with the demands to remain competitive in attracting global talent in the entertainment industry has become challenging. Positively, our internal talent development practices enabled a strong mix of internal leadership promotions to key positions in the business. Our collaboration with educational institutions enables recruiting talent early. We have active partnerships with multiple learning institutions and production partners to attract young talent spanning the TV, film, technology, engineering and data science fields. For experienced hires, our talent acquisition teams are actively driving targeted campaigns to attract talent. Benchmarking and remuneration advisers We strive to be consistent, offering reward systems that help attract and retain the best talent in our market. We consider market practices, the needs of the business as well as the calibre of the individual in our recruitment processes. We benchmark our remuneration using the PwC Remchannel Survey in South Africa. For senior management, which we sometimes recruit globally, we also utilise the LMO Executive Survey and Willis Towers Watson Executive Survey. We target our guaranteed salary at the median of the market with exceptions in certain cases for scarce and critical skills. We have appointed Bowman Gilfillan as our independent remuneration committee adviser and we are satisfied that the advice is objective and independent. 73 MultiChoice South Africa Holdings Proprietary Limited integrated annual report 2019