SENWES Integrated Report 2020 | Page 70

REMUNERATION REPORT The board, through the Senwes Remco, taking cognisance of the groups’ performance and general economic and political environment, is committed to ensuring that the remuneration of executive managers is fair and reasonable in the context of overall employee remuneration. The committee is tasked by the board to independently approve and oversee the implementation of a remuneration policy that will encourage the achievement of the group’s strategy. Our remuneration policy is reviewed annually to ensure that the objectives of remuneration, namely to attract, retain, motivate and reward talented and high-performing staff, to achieve the company’s strategic objectives, deliver expected shareholder returns and ensure sustainable performance and shareholder value-creation in the long term, are achieved. The group’s philosophy is to encourage sustainable long-term performance that is consistently aligned with the interest of shareholders. Senwes adopts a holistic and total reward philosophical approach to remuneration, which takes into consideration financial and non-financial, direct and indirect, as well as intrinsic and extrinsic rewards, based on and in support of the employee value proposition. Senwes Total Remuneration Framework CAREER GROWTH OPPORTUNITIES SHORT-TERM INCENTIVES LEARNING AND DEVELOPMENT OPPORTUNITIES LONG-TERM INCENTIVES GUARANTEED REMUNERATION PERFORMANCE RECOGNITION GUIDING PRINCIPLES � The remuneration policy is governed through the governance structures to ensure alignment with the vision, commitment, values, strategic direction and objectives of the company; � The remuneration policy and practice must be compliant with relevant regulations, economically sensible, ethically aligned and market related; � The group uses a total reward approach, applying an appropriate reward mix for the various employees, based on and in support of the employee value proposition; � The group’s remuneration policy must be transparent and implemented fairly and consistently, based on the factors of role, qualifications, experience, scarcity of skills, individual contribution, level of performance and talent potential; � Remuneration of employees will be based on relevant and appropriate market benchmarks to strive for competitiveness of the total reward positioning, within the parameters of affordability; � Total remuneration must be aligned with individual, business unit and corporate performance. REMUNERATION POLICY Scope: � The policy outlines the governance framework through which remuneration is determined and managed throughout the group and across all levels of the organisation; � The policy is approved by the board and management has the responsibility to implement it; � The policy is aligned with the Senwes strategy and is part of Senwes’ operating philosophy, policies and standards. The committee is mandated by the board to oversee all aspects of remuneration in accordance with the approved terms of reference. In establishing a remuneration philosophy and policy, the Senwes Group considers the following: � Remuneration that is compliant with regulations and aligned with codes of best practice; � Fair, reasonable and market-related remuneration; � Policies and practices that strive for internal equity; � Remuneration that is economically affordable and aligned with the company’s code of ethics; and � Aligns executive long-term wealth interests with the long-term interests of the shareholders. STRATEGIC OBJECTIVES The strategic objectives of the remuneration policy are: � To ensure that the business has the right mix of skills; � To attract and retain the right talent; � To develop a high-performance culture, which rewards individual, team and corporate performance; � To motivate result-oriented behaviour and pursuit of excellence; � To encourage long-term focus that ensures sustainability of performance, effective risk alignment and management; � To encourage behaviour that is aligned with the culture and objectives of the company; � To align employees’ interests with the interests of the shareholders. 68 ROOTED IN AGRICULTURE