SALGA annual report 2016/17 SALGA ANNUAL REPORT 201617 PRINTED FINAL | Page 237

South African Local Government Association Schedule 3A public entity i.t.o. the Public Finance Management Act, 1999 and recognised i.t.o. the Organised Local Government Act, 1997 Annual Financial Statements for the year ended 31 March 2017 Notes to the Annual Financial Statements Figures in Rand 33. Key management personnel (continued) SALGA’s Performance Management and Remuneration Committee is charged with normalising of SALGA’s remuneration framework, particularly in instances where salary bands of some executives are on a “personal to holder basis” till the expiry of the contract or through natural attrition or earlier. The Chief Executive Officer’s current remuneration has been identified to be one of these category of employees. Notwithstanding, the efforts to manage the escalation of remuneration at SALGA, particularly those of executives, it is important to note that SALGA had to review its remuneration policies as it pertains to its executives and benchmark these with municipalities particularly metros since metropolitan municipalities pose the greatest direct remuneration competitor to SALGA (also see report of the chairperson of SALGA’s Performance Management and Remuneration Committee in the annual report). 237 SALGA ANNUAL REPORT 2016/17