Introduction

The Group’s approach to remuneration is designed to maximise the achievement of strategic objectives and the retention and motivation of employees. The Group makes use of remuneration consultants, Deloitte.

This report details GPI’s philosophy and approach to remuneration, which supports our strategic objectives. Our approach is informed by market research and market best practice to attract and retain key talent and skills and to create shareholder value.

Our remuneration philosophy and practice is underpinned by an internationally recognised job evaluation and grading system, under licence from Deloitte Human Capital. GPI undertakes remuneration and benefit benchmarking, to ensure that it maintain an equitable and fair remuneration practice in the marketplace.

The Remuneration Committee plays an integral oversight role into the outcomes of our grading and benchmarking practices, ensuring remuneration practices meets our strategic objectives and compensation is in line with Company financial performance and growth.

Policy objectives

In line with best practice, the Group’s remuneration policy aims to create an appropriate balance between:

  • Shareholder interests and employee interest
  • Operational and strategic objectives
  • Attraction and retention of key talent

Policy guidelines

The policy ensures fair determination of remuneration based on current relevant market data. Taking into account the uniqueness of our business and our strategic business objectives, this data is customised to meet the needs of the Group. Other factors included in our guidelines are affordability, openness and transparency. Rewards accrue to employees who have achieved stated objectives. Employees who surpass these are granted a greater portion of the rewards pool.

The Group currently tracks the lower quartile of the remuneration market to determine base pay for all employees. As the growth and sustainability of the Company improves, this pay line will be enhanced.

The policy practice is robust enough to ensure the retention and motivation of employees. Where critical and scarce skills have been identified, additional mechanisms are in place to address these.

Remuneration structure

Base Pay

Base pay is determined using market data and benchmarking. The Group operates on a cost-to-company (CTC) or base pay monthly salary basis. The CTC is made up of the following:

  • Cash component (including travel allowance/shift allowance, etc.)
  • Benefits:
    • Medical aid
    • Provident Fund:
      • Group Life
      • Income protection
      • Funeral cover

Short-term incentives

An annual incentive bonus scheme is in place to reward employees for achieving and exceeding agreed performance objectives. The scheme is based on a percentage of CTC, combined with fees relating to success on specific transactions, and adjusted according to personal contribution and impact on Company performance. The Remuneration Committee reviews all bonus proposals, before submitting to the Board for approval.

Long-term incentive

Long-term incentives take the form of share options, in terms of the Grand Parade Share Incentive Trust (GPSIT). These incentives are in place for executives, senior management and selected key employees.

The GPSIT aims to align the goals of executive remuneration with the creation of shareholder wealth. A key objective of the scheme is to ensure the long-term retention of key employees for the financial benefit and growth of the organisation. Employees benefit from the scheme when the share price of the Company is improved.

REMUNERATION MIX

Level at which applicable

Remuneration Type

Description

General Staff

Management Staff

Executive

Base pay

Consisting of:

X

X

X

  • Cash Salary
  • Allowances (job specific)
  • Travel allowance (if required)
  • Medical Aid
  • Retirement Funding
  • Insured benefits (group life, funeral)

Discretionary bonus

Annual bonus

X

X

X

  • Based on a % of the employee salary
  • Subject to individual and Company performance

Long-term incentive

Discretionary shares

X

X

  • Issuing of a limited amount of shares to employees, subject to conditions of the trust, Company and individual performance

Share options

X

  • Governed by the SIT
  • Participants only gain if the share price increases
  • Participation multiple is a function of specific criteria

Share option value is a function of guaranteed pay times participation multiple