Performance Management and Remuneration Committee
• Variable pay short-term incentive scheme is designed to focus the Executive management team on the achievement of the short-term strategic, financial and operational objectives in the annual performance plan( APP). The incentive is payable on achieving certain pre-defined stretch targets, in line with our strategy. The scheme rewards performance when targets are met, with higher rewards for exceptional performance.
• Variable long-term incentive share schemes are designed to align the objectives of senior management with those of SALGA five-year strategic plan( 2012 to 2017) and therefore ensure sustainable long-term performance.
1.2 Other employees remuneration
Other employee total remuneration package consists of the following:
• Total guaranteed pay which includes benefits, is subject to an annual review by the Performance Management and Remuneration Committee.
• Variable pay short-term incentive scheme is designed to focus employees on the achievement of the short-term strategic, financial and operational objectives in the annual performance plan( APP). The incentive is payable on achieving certain pre-defined stretch targets, in line with our strategy. The scheme rewards performance when targets are met, with higher rewards for exceptional performance.
1.3 Retention scheme – variable long-term incentive( LTI) scheme
The Performance Management and Remuneration Committee on 14 March 2015 approved a retention scheme in the year under review for all employees on Fixed-term contracts( FTC) that are performance based.
The retention scheme is a performance based Long-term incentive( LTI) scheme designed to retain Fixed-term contract( FTC) employees that are talented; perform at an acceptable level and are critical in driving SALGA’ s long-term strategy.
The Long-term incentive scheme( LTI) grants conditional awards which vest after a threeyear performance period, subject to the extent to which agreed performance conditions have been met. The performance conditions are determined by the Performance Management and Remuneration Committee and are based on an acceptable performance rating per SALGA’ s performance rating matrix applicable for all employees.
1.4 Performance rewards- variable shortterm incentive( STI) scheme
The organisation has a short-term incentive( STI) scheme that has been cascaded to all employee levels.
It is a variable pay short-term incentive scheme designed to focus all employees on the achievement of the short-term strategic, financial and operational objectives in the annual performance plan( APP). The incentive is payable on achieving certain pre-defined stretch targets, in line with SALGA’ s strategy.
1.5 Behaviour charter – variable short-term incentive( STI) scheme
The organisation has implemented the Behaviours Charter as part of its performance management system for the first time in 2014 / 2015 financial year. The Behaviours Charter is a framework that reflects key behaviours that will support the values and culture desired by the organisation.
Its objective is to shape operational excellence, support management and organisational development, develop capacity and core leadership within the organization and to identify areas of individual and team development.
The behaviours charter component has a total weight of 15 percent in the performance scorecards of SALGA employees.
The behaviours charter is premised on two types of behaviour components:
( 1) Enabling behaviour( supported by the organisation); and
( 2) Constraining behaviours( frowned upon by the organisation).
253 SALGA ANNUAL REPORT 2016 / 17