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Vodacom Group Limited
Integrated report for the year ended 31 March 2017
Our aim is to attract, retain and motivate executives of the highest
calibre, while at the same time aligning their remuneration with
shareholder interests and best practice. Our approach to reward
is holistic, balanced across the following elements:
g
g
Guaranteed package (GP)
g
g
Variable short-term incentive (STIP)
g
g
Variable long-term incentive (LTIP)
g
g
Various recognition programmes
g
g
Individual learning and development opportunities
g
g
Stimulating work environment
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g
Well designed and integrated Employee Wellness programme
Vodacom adheres to a ‘total cost to company’ philosophy, which we
refer to as the guaranteed package (GP). All employees, including
executive directors and prescribed officers, receive a guaranteed
package based on their role in the company and also linked to their
individual performance. Contributions to medical aid, retirement
funding and insured benefits are included in the GP.
The above elements are underpinned and reinforced by our
Performance Dialogue (PD) and Talent Management processes.
Our policy is to reward our executives for their contributions to
our strategic, financial and operating performance.
To be a top employer in our industry we need to attract, develop
and retain top talent and intellectual capital both locally and
internationally.
Abridged remuneration report
continued
Vodacom reward framework:
Vodacom’s reward framework comprises financial and non-financial elements and is applied to all employees, including the executive
directors and prescribed officers. The Vodacom reward framework is explained in the picture below.
Employee benefits
Work environment
Learning and development
Other
Recognition
My
reward
at Vodacom
Guaranteed package (GP)
Short-term incentive (STIP)
Long-term incentive (LTIP)
Other
Recognition
My remuneration
(Financial reward)
My non-financial
reward
To ensure that our reward offerings remain competitive, we
conduct our annual salary review in July of each year.
On an annual basis we conduct remuneration benchmarking and
award increases in the GP according to the market, individual
performance and potential. Individual performance and potential
assessment is determined through our talent management and
PD processes. The outcome of these also influences the awarding
of short- and long-term incentives in the future.
Our short-term incentive, in the form of an annual cash bonus, is
linked to achieving financial, strategic and operational objectives
and the employee performance against their objectives set by line
management. The pool available for short-term incentives is
determined by financial performance of the Group against
previously set and agreed targets.
Our long-term incentive, in the form of an annual share allocation,
encourages ownership and loyalty, and supports our objective to
retain valued employees. It is designed to align executive
performance to shareholders’ interests, as a portion of the award is
subject to Group performance conditions. The scheme is a full
ownership scheme; as a result, participants receive dividends from
the award date although the value of the shares can only be
realised after a three-year vesting period, to the extent that the
vesting conditions have been met.
RemCo reviews the total pay mix of executives every year and
decides on the proportion of total remuneration to be paid as GP,
STI and LTI, as each of these elements is linked to creating
shareholder value and the strategic progress made in the year.
Our remuneration philosophy,
policy and framework
02
Section