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BLUE LABEL INTEGRATED ANNUAL REPORT 2014
AIRTIME
development and succession planning, together
with leadership qualities, corporate governance best
practice, strategy implementation and risk mitigation.
The Group’s performance for the 2014 financial year
was not satisfactory, as a result of which:
➔
the Committee only authorised the payment of
R18.3 million in aggregate, for bonuses, which
amounts to 2.8% of the total pre-tax profit; and
➔
the Executive Directors, including the two most
senior employees of The Prepaid Company, agreed
to forfeit their right to receive any portion of their
bonus entitlement.
The bonus parameters for Executive Directors and
Senior Management for the 2015 financial year have
been determined as follows:
1. Executive directors
Joint CEOs at 120% of annual salary, Financial
Director and Chief Operating Officer at 70% of
annual salary, of which 80% will apply to financial
criteria and 20% to non-financial criteria.
➔
Financial (80%)
– If growth in headline earnings per share is
less than CPI, no element of the 80% will
be paid.
– If growth in headline earnings per share is
equal to CPI plus 10%, then 70% of the
80% will be paid either in full or pro rata, as
the case may be.
– If growth in headline earnings per share
exceeds CPI plus 10%, then an additional
30% of the 80% will be paid.
➔
Non-financial (20%)
The following criteria will be taken into account
in determining qualification for the 20%:
– the achievement of agreed transformation
targets, progress in the delivery of the
Group’s growth strategy, the roll-out of the
Group’s transactional footprint, the level of
progress made in respect of organisational
development and succession planning,
together with leadership qualities, corporate
governance best practice, strategy
implementation and risk mitigation.
2. Executive directors and senior management
A maximum of 50% of annual salary will be paid,
of which 80% will apply to financial criteria and
20% to non-financial criteria.
The financial criteria will be split as to 60% on the
performance of the subsidiary and 20% on Group
performance.
➔
Financial per subsidiary (60%)
– If growth is less than CPI, no element of the
60% will be paid.
– If growth in headline earnings per share is
equal to CPI plus 10%, then 70% of the
60% will be paid either in full or pro rata, as
the case may be.
– If growth in headline earnings per share
exceeds CPI plus 10%, then an additional
30% of the 60% will be paid.
➔
Group performance (20%)
– If growth is less than CPI, no element of the
20% will be paid.
– If growth in headline earnings per share is
equal to CPI plus 10%, then 70% of the
20% will be paid either in full or pro rata, as
the case may be.
– If growth in headline earnings per share
exceeds CPI plus 10%, then an additional
30% of the 20% will be paid.
➔
Non-financial (20%)
The following criteria will be taken into account
in determining qualification for the 20%:
leadership, corporate governance best practice,
strategy implementation and risk mitigation.
REMUNERATION
REPORT
CONTINUED