Senwes Integrated Reports Senwes 2013/2014 Integrated Report | Page 39

EMPLOYEE RECOGNITION The Senwes Group’s recognition process is applied at divisional level and culminates in Group recognition focused on employees at all levels. Exceptional performers who have exceeded expectations and who demonstrate behaviour consistent with Senwes values are identified through peer and management participation. The Group recognises excellent performance in the categories of financial and operational performance; customer service, sustainability, entrepreneurship, team excellence, Group service excellence, and the Managing Director’s award. REMUNERATION Remuneration philosophy The objective of remuneration is to attract, retain, motivate and remunerate talent for sustainable short and long-term performance, thus to achieve the Group’s operational, strategic and sustainable long-term goals. The Group positions itself at the 50th percentile in terms of market-based pay (guaranteed) and follows a more aggressive incentive scheme to ensure better alignment between employees and shareholders. Short-term performance incentives The Group uses short-term performance incentives (STI) to focus behaviour in respect of important strategic and business objectives. This is to motivate the achievement of short-term goals and financial performance. Incentive schemes are based on the achievement of corporate performance targets, divisional and individual objectives and follow the principle of line-of-sight in order for targets to be set at the level of influence of the employee. Long-term performance incentives The objective of the long-term incentive scheme (LTI) is to retain key employees and to align their long-term interests to those of the shareholders. Remuneration mix: SHORT-TERM INCENTIVES LONG-TERM INCENTIVES On-Target Bonus SCALE 37