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In the event that an executive or an employee becomes unable to
perform their duties as a result of disability, they will receive a
monthly income of 75% of their monthly pensionable salary. The
disability premiums are also funded from the GP.
All employees, including executive directors and prescribed officers,
with the exception of those employees who are on a commission,
quarterly or bi-annual bonus structure, participate in an annual
short-term incentive plan. Incentive payments are discretionary, and
payments made under the plan are dependent on both business
and personal performance. Payments are delivered in cash in June
each year after finalisation of Vodacom Group’s consolidated annual
financial results and no deferral is applied.
Short-term incentives (STI)
Our incentive plans used to reward the performance of our
executive directors, prescribed officer and senior managers include
measures linked to our key performance indicators. The bonus
pay-out for the 2016 financial year was dependent upon
performance across three financial measures (service revenue,
EBITDA and adjusted free cash flow) and one strategic measure
(customer appreciation assessment). The financial measures each
have an equal weight of 20% and customer appreciation 40%. The
customer appreciation assessment was based on a market-by-
market assessment of measures, including NPS performance,
relative revenue market share and brand consideration.
The weighting for each measure is detailed below:
% weighting
2016
2017
(Unchanged)
Service revenue
20%
20%
EBITDA
20%
20%
Operating free cash flow
20%
20%
Competitive performance
40%
40%
As in previous reports, we will disclose the details of our STI
targets; however, as these are commercially sensitive, we will
only disclose the targets in the report following completion of
the financial year.
The on-target and bonus cap percentages are set out below:
Role
On-target % Maximum%
CEO
100%
200%
Executive director
60%
180%
Prescribed officers
50% – 60% 150% – 180%
Where annual targets are achieved in full, 100% of the on-target
bonus will be paid. In instances where target goals are exceeded,
more than 100% of the on-target bonus is paid, but in all cases the
cash bonus is capped at a percentage of the GP. Where the bonus
targets are not achieved in full, a pro rata bonus is paid only if the
threshold performance level has been achieved.
The formula for determining the CEO’s cash bonus is:
GP
x
x
100%
On-target incentive
0% to 200%
Business performance
multiplier
The formula for determining the cash bonus for the executive directors is:
x
x
x
GP
60%
On-target incentive
0% to 200%
Business performance
multiplier
0% to 150%
Personal multiplier
The formula for determining the cash bonus for the other prescribed officers is:
GP
50% to 60%
On-target incentive
0% to 150%
Personal multiplier
0% to 200%
Business performance
multiplier
x
x
x
Our performance
Our business
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