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outcomes. The following key drivers will apply to the short-term
incentive scheme for executives:
• Financial (Earnings Before Interest and Tax (“EBIT”))
• Risk management as measured by the Audit and Risk
Committee
• Strategic impact
• Business unit specific objectives
Note that performance below threshold on any metric results in
a zero score for that proportion. Non-executive Directors are
not allowed to participate in any incentive scheme.
LONG-TERM INCENTIVES
The original long-term share-based scheme, created as part of
the warranty conditions set out in the Sale of Share Agreement
between the vendor consortium and AfroCentric during 2013,
has run its course. No further shares have been issued under
this particular scheme and all vesting conditions have been
met.
However, in terms of the rules of the scheme and for selective
executives employed at the time of the introduction of the
AfroCentric Share Warranty scheme, the available pool of
forfeited shares would be distributed on a percentage of
remaining shares held by participants. The total number of
shares available amounted to 1 518 605 shares which were
allotted to Mr Kevin Aron, Mr Tim Rametse, Mr Lee Callakoppen
and Mr Vijay Pillay.
NEW LONG-TERM INCENTIVES
Further to comparative peer group reviews, benchmarking and
best practice, our shareholders approved the implementation
of an employee share scheme and the Group’s remuneration
strategy will be further revised in consultation with shareholders
to make provision for an LTI scheme which will be launched
during the 2018 financial year.
The LTI is aimed at retaining, motivating and rewarding those
executives and senior managers who influence the long-term
sustainability, value creation and strategic objectives of the
Group on a basis which aligns their interests with those of the
Group’s shareholders. The objective is to share ownership of
the Group’s wealth with executives and selected employees
that contribute to the growth and wealth generated by the
Company and, hence, place a value instrument in the hands of
employees.
The scheme will be governed by the rules of the AfroCentric
Management Long Term Incentive Plan 2018.
EXECUTIVE AND NON-EXECUTIVE
DIRECTORS’ REMUNERATION
INCREASE IN GUARANTEED PAY
The annual revised guaranteed pay for the Group CEO and
other Executive Directors was recommended to the Board
by the Remuneration Committee for final approval. Such
recommendations took into account individual performance as
well as benchmarking of similar sized firms to ensure that
guaranteed pay is suitably positioned.
Adjustments as set out belowwere approved for implementation
1 August 2016, with the exception of Mr Hannes Boonzaaier,
whose annual adjustment was effective 1 July 2016.
Guaranteed package
(“GP”) (R)
Increase
(%)
Name
2016
2015
2016
A van Buuren
3 727 500
4
3 500 000
6.5
WH Britz
3 727 500
5
3 500 000
6.5
H Boonzaaier
2 848 488
6
2 513 808
13.3
4
Effective 1 August 2016 only.
5
Effective 1 August 2016 only.
6
Following market benchmark review of CFO remuneration in similar
industries and market caps, a further adjustment of 6% was made
effective 1 November 2016.
101
INTEGRATED REPORT 2017