SENWES Integrated Report 2020 | Page 72

REMUNERATION STRATEGY Senwes’ remuneration strategy is based on a total reward approach, which includes financial and non-financial, direct and indirect, intrinsic and extrinsic rewards, based on and in support of the employee value proposition. EMPLOYEE VALUE PROPOSITION Senwes strives to be an employer of choice. In this regard, Senwes has developed an employee value proposition, which steers the company’s employee engagement and talent strategy towards the realisation of that vision. The purpose of our employee value proposition is to enable the organisation to attract prospective talent, improve employee engagement and performance, inculcate behaviour consistent with our values, develop an enabling and supportive work environment and to retain talent. The employee value proposition is based on the following four pillars: CREATING A GREAT COMPANY TO WORK FOR PROVIDING CHALLENGING JOBS AND GROWTH OPPORTUNITIES PROVIDING AN ENABLING, SAFE, HEALTHY AND SUPPORTIVE WORK ENVIRONMENT PROVIDING EMPLOYEE RECOGNITION AND MARKET COMPETITIVE REWARDS REMUNERATION STRUCTURE The remuneration structure comprises guaranteed pay (total cost to company), special purpose bonus (in exceptional circumstances, at the discretion of the executive and/or Remco), short-term incentives and long-term incentives. An appropriate remuneration mix is maintained between fixed and variable performance-based remuneration, as well as between short-term and long-term performance-based remuneration. The diagram below illustrates the functioning of the remuneration structure: REMUNERATION PHILOSOPHY AND INCENTIVES OPERATORS OPERATIONAL MANAGERS STRATEGIC INFLUENCERS OPERATORS Employees from job grade 1 – 11. % of Cost to Company 100% 75% 50% 25% 100% 12% % of Cost to Company 100% 75% 50% 25% 100% 15% 15% % of Cost to Company 100% 75% 50% 25% 100% 30% 30% 50% OPERATIONAL MANAGERS Employees from job grade 12 – 16. STRATEGIC INFLUENCERS Employees from job grade 17 – 25. 0% 0% 0% Cost to company Average on-target bonus Average profit share Average long-term incentive DIRECTORS’ REMUNERATION Remco reviews the remuneration of executive and non-executive directors annually, based on external surveys and benchmarks against a comparator group of companies and other relevant benchmarks. The committee also considers the skills levels, performance and retention of the directors. Remuneration is generally positioned at the median of the relevant benchmark. NON-EXECUTIVE DIRECTORS’ REMUNERATION Non-executive directors’ remuneration is reviewed on an annual basis and tabled at the annual general meeting for approval as a binding vote, as required in terms of section 66(9) of the Companies Act, 2008. Non-executive directors’ fees are benchmarked against various surveys and compared to a comparator group of companies, approved by 70 ROOTED IN AGRICULTURE