Reflections from the chairman
Dear Shareholders
As the chairman of the Remuneration Committee, I am pleased to present my first Remuneration Committee Report.
The past two years have been extremely difficult for our employees, business units and clients as the COVID-19 pandemic continues to impact the global economy, trading conditions and the social landscape. The challenges of the COVID-19 pandemic will have a lasting effect and we will need to live with the various variants in the foreseeable future.
New international trends are changing the remuneration and governance landscape significantly with institutional investors and regulators being more specific regarding what they want from companies in which they are invested which includes ESG and human capital measurements. The focus on the vertical and horizontal pay gap continues to grow – the CEO’s salary compared to that of the lowest paid worker. Many companies are moving towards paying a living wage rather than a minimum wage to make an impact on people’s lives. The horizontal pay gap, also known as the gender pay gap remains a highly controversial issue.
This Remuneration Report sets out the Group’s remuneration philosophy and policy, transparency principles and disclosures set out in King IV™, the JSE Listings Requirements and the Companies Act. It describes how the Remuneration Policy has been implemented and discloses payments made to non-executive and executive directors during the year. This report will be considered and voted upon at the forthcoming AGM of shareholders on behalf of the Remuneration Committee.
In the face of the deteriorating macroeconomic environment and slower growth due to the COVID-19 pandemic, the Group’s remuneration objectives for motivating and retaining employees continued to be severely compromised. As a result, we shifted our objectives to financial and short-term operational resilience while championing the King IV™ Code on Corporate Governance and in line with our commitment to fair and responsible remuneration.
During the year, we reviewed our remuneration practices to ensure that they remain relevant and aligned with our strategy. We also ensured that any resultant changes did not have a material effect on our human capital and that the Group remains committed to implementing fair, transparent and responsible remuneration practices that support our business model and strategy.
Remuneration and reward systems continue to remain sensitive matters, especially in the socio-political environment. As such, the committee will continue to review and adapt to changes in market conditions to ensure that our policy and principles remain appropriately aligned with our overall business strategy. We remain committed to maintaining strong relationships with our shareholders, built on trust and a clear understanding of the quantum, rationale and drivers of executive remuneration and that our Remuneration Policy and practices have been implemented.
Gaamiem Colbie
Chairman of the Remuneration Committee
