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BLUE LABEL INTEGRATED ANNUAL REPORT 2015
Salary increases for the 2016 financial year ranged
from 0% to 6% (2015: also 0% to 6%).
Management of each operating company was
afforded their own discretion to apply the
appropriate increase within the stipulated range
to each staff member falling under their control.
The annual salary increase of the Executive Directors
for the forthcoming financial year is 6%.
Details of the Directors’ remuneration for the year
ended 31 May 2015 appear on pages 172 and 173.
Incentive bonus plan
The Executive Directors and Senior Management
participate in an annual incentive bonus plan, which
is based on the achievement of short-term
performance targets. These targets comprise
financial and non-financial components. The
financial performance component is based on
growth in profits, as measured by core headline
earnings per share. Historically the performance
component was based on growth in headline
earnings per share. However, going forward it will
be more prudent to apply growth in core headline
earnings per share, as the latter is more indicative of
the trading performance of the Group.
The non-financial elements include the achievement
of transformation targets, progress in delivering the
Group’s growth strategy, rolling out the Group’s
transactional footprint, the rate and level of progress
in respect of organisational development and
succession planning, together with the application
of leadership qualities, corporate governance best
practices and risk mitigation.
For the 2015 financial year, the Group achieved the
levels required in terms of its predetermined targets
for growth in headline earnings per share. In
addition, the non-financial targets set for the
Executive Directors and Senior Management were
Additional governance principles applicable to the
composition and principal activities of the RNC are
more fully set out on page 42 (Governance
Framework) of this integrated annual report.
POLICY
The remuneration of Executive Directors and Senior
Management is determined on a total cost-to-
company basis, comprising three components:
•
•
Fixed remuneration
– fixed monthly salary and
benefits. Fixed remuneration is reviewed annually
in order to ensure that the Executive Directors
and Senior Management, who contribute to the
success of the Group, remain remunerated at
appropriate levels in accordance with the
remuneration philosophy.
•
•
Variable remuneration
– a short-term
performance-related bonus payment. The variable
pay element provided by the short-term bonus
plan is intended to enhance total pay
opportunities, should that be merited by Group
and individual performance. The purpose of the
annual performance-related bonus payment is to
reward and motivate the achievement of Group
and subsidiary financial targets, as well as to
motivate strategic and personal performance. The
Joint CEOs may earn an annual incentive bonus
of up to 120% of fixed remuneration and other
executive directors of up to 70%. Senior
Management may earn up to 50% of their
annualised fixed salary package.
•
•
Forfeitable share plan
– a long-term
performance-related incentive scheme. Long-term
incentives, in the form of forfeitable shares
awarded under the share plan, are based on a
percentage of total annualised fixed salary
packages and are intended to reward sustained
long-term performance and to align the interests
of the Executive Directors and Senior
Management with those of shareholders.
Fixed remuneration
Blue Label applies a discretionary approach in all
remuneration reviews and there is no minimum
across-the-board increase to all employees.
REMUNERATION REPORT
CONTINUED