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
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