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INTEGRATED REPORT 2017
To ensure that we protect value we use the following guiding
principles with regard to AfroCentric’s remuneration philosophy,
which is centred on the following key considerations:
• Resolute commitment to best practice in areas of
remuneration and reward, underpinned by statute,
regulations and related guidelines
• Attracting, rewarding, motivating and retaining exceptional
people with the right mix of experience, skills and
knowledge who deliver against strategic imperatives and
achieve sustainable growth
• Ensuring that sustainable high levels of performance and
value creation standards are aligned to the objectives of
shareholders, where senior management share an
appropriate level of personal risk
• To support and reinforce our desired culture and encourage
behaviour consistent with our values, thereby stimulating
employee engagement
• To drive a high-performance culture and incentivise
employees for excellent execution of our strategic priorities
• To enable appropriate transparency in the development of
remuneration programmes and the allocation of individual
remuneration to ensure equity and fairness based on valid
and appropriate external and internal benchmarks
• To align with the principles of good corporate and
remuneration governance, ensuring an appropriate share of
value for the relevant stakeholders in our business
• Regular evaluations, peer-group reviews and related surveys
to ensure comparative and contextual pay-for-performance
SCOPE OF THE POLICY
The remuneration policy applies to all entities in the Group,
including wholly owned subsidiaries and those in which we
have a majority interest, but excludes companies where we
have a minority share. The policy applies uniformly in all such
jurisdictions, except where it is in conflict with either local
statutes or regulations, in which case such statutes and
regulations will apply.
AfroCentric Health’s remuneration strategy is positioned to
attract, retain and motivate outstanding talent and thereby
achieve business sustainability and the key strategic objectives
of the Group.
The remuneration strategy is underpinned by the following two
inter-dependent dimensions:
• Guaranteed remuneration
is a Total Guaranteed Package
(“TGP”), which holistically comprises salary (“base pay”),
medical aid, pension, allowances, and the like. The TGP is
the minimum remuneration receivable by an executive or
employee in the absence of any other incentives.
Annual benchmarking assesses the appropriateness of TGP
against comparable firms and industries. The combination of
distribution of guaranteed remuneration within the earnings
ranges and the market relativity of our guaranteed
remuneration is a primary input into the annual salary review
process, but in all instances subject to affordability and
appropriate consideration of the sustainability of our
remuneration practices.
Whilst it is the Group’s policy to benchmark remuneration at
the market median, certain roles are remunerated in excess
of the median – the health and information technology
industries require highly specialised skills, and the current
remuneration mix does not allow for long-term incentive
(“LTI”) schemes, or above-average STI schemes in
comparison to market. The Group Remuneration Committee,
in consultation with the Board and stakeholders, agreed to
review and appropriately revise the guaranteed and variable
remuneration elements, including but not limited to, STIs and
LTIs, in the next financial year.
Robust job profiling aids remuneration benchmarking. This
enables consistency in the sizing of roles, and the associated
benchmarking of guaranteed remuneration levels.
Furthermore, individual performance determines the extent
of an individual’s progression within an earnings range. Thus,
performance and individual market position are used
concurrently when remuneration increases are determined.
Guaranteed remuneration is only adjusted outside the annual
review process in exceptional circumstances, such as
changes in responsibility or with the intention of retaining
specific talent. These are subject to appropriate approval
based on the relevant delegations of authority.
• A Management Short-term incentive
is focused on the
executive team as well as tier two managers, being those
that report directly to the executive, as well as employees
selected based on value contribution and scarce and critical
skill criteria.