Senwes Integrated Reports Senwes 2014/2015 Integrated Report | Page 37

REMUNERATION STRUCTURE The remuneration structure comprises of guaranteed pay, short- term incentives and long-term incentives, at the discretion of the Board. 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. Guaranteed remuneration is reviewed annually against relevant benchmarks. REMUNERATION COMPOSITION PERFORMANCE AGAINST STRETCHED TARGETS GUARANTEED REMUNERATION TARGET BONUS PROFIT SHARE 0 25 50 75 100 125 0 25 50 75 100 125 LONG- TERM INCENTIVE STRATEGIC PERFORMERS KEY PERFORMERS PERFORMERS AVERAGE PERFORMERS % 0 25 50 75 100 125 0 0 25 25 50 50 75 75 100 100 125 125 SHORT-TERM INCENTIVES LONG-TERM INCENTIVES Short-term incentives are paid in cash and are based on the achievement of annual targets. The STI comprises of an on- target bonus and profit share bonus where targets have been met. It is designed to focus behaviour on important strategic and business objectives. The criteria for short-term incentives are based on the achievement of risk adjusted return targets. The purpose of long-term incentives is to reward employees who have influence on the strategic performance of the business and to align their interests with the interests of the shareholders. The Remuneration Committee, at its discretion and based on the recommendation of the Managing Director, selects participants and determines the allocation of shares on an annual basis. The shares are forfeitable and will vest after three years, subject to certain retention and performance conditions. Senwes INTEGRATED REPORT 2015 35