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Remuneration report
continued
Policy
The remuneration of employees is determined on a total cost-to-company basis, comprising four components:
The table below summarises the remuneration policy and composition for all employees and non-executives
Fixed remuneration
Base salaries
Non-Executive Directors’
fees
Retirement benefits Other benefits
Purpose
Provides a fixed level of earnings
appropriate to the requirements
of the role
Remunerates non-executive directors for
their Board and Board committees‘
responsibilities and time commitments
Provides for retirement savings
Provides benefits
appropriate to the market
and the role
Application
dependent on
employee type
and level
All employees
Non-Executive Directors
All new employees since October
2016 are required to join the
Group Provident Fund. This is
Employee funded. All existing
staff are eligible to contribute
towards the provident fund
Employees earning in
excess of R6 500 per
month are required to
belong to the approved
medical aid, alternatively
they may be a dependant
on their spouse’s medical
aid
Operational
and
performance
measures
Fixed remuneration is reviewed
annually in order to ensure that
Executive Directors and Senior
Management, who contribute to
the success of the Group, remain
remunerated at appropriate
levels in accordance with the
remuneration philosophy
Blue Label applies a discretionary
approach in all remuneration
reviews and there is no minimum
across-the-board increase to all
employees. Salary increases for
the 2017 financial year ranged
from 0% to 6.5% (2016: 0%
to 6%). Management of each
operating company were granted
discretion to apply an
appropriate increase, within the
stipulated range, to each staff
member under their control
Non-Executive Directors receive fees for
their services on the Board and Board
Committees, dependent on their
attendance at meetings. Non-Executive
Directors do not receive short-term
incentives, nor do they participate in the
forfeitable share plan or outperformance
bonus of the Company.
Historically, increases in Non-Executive
Directors’ fees were in line with inflation.
On assessing comparative fees payable to
non-executive directors of listed companies
of a similar size as well as the sector in
which they are quoted, adjustments have
been proposed to ensure that the fees are
benchmarked in the upper quartile of the
peer review group, in order to ensure
retention of our Non-Executive Directors
and enable attraction of future directors
with the necessary experience and
expertise to guide the group in
achievement of its strategic goals.
The fees payable to the Chairman and
Non-Executive Directors are recommended
by the RNC to the Board which, in turn,
proposes the fees for approval by the
shareholders at the AGM
Non-Executive Directors may be contracted
to render services to the Group in addition
to the foregoing services from time to time.
There were no services contracted with
Non-Executive Directors during the year
The proposed annual capped Non-
Executive Directors’ remuneration for the
2018 financial year is illustrated on page
66 and will be adjusted for any
non-attendance of meetings.
The Group Provident Fund is
compulsory for all new staff and
elective for all existing staff
(employed prior to October
2016). The fund is employee
funded. The minimum
contribution is 5% of
pensionable income increasing
in increments of 2.5% to a
maximum of 27.5%
The Group offers an
employer funded Group
Life benefit which includes
a death benefit, disability
benefit, severe illness
benefit and a funeral
benefit. The Group also
acknowledges long service
for 5, 10, 15 and more
recently 20 years’
performance
BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
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