This section explains how the remuneration policy was implemented in the reporting year and re ects the resulting payments each director received (backward looking). All decisions in relation to executive remuneration were made in line with our remuneration policy for this nancial year. Salary adjustments The committee approved a 5% salary increase in FY23 for all employees in South Africa which was determined through a collective bargaining process. To show our commitment to improving the lives of our lower-level employees, we applied a tiered approach where higher increases were prioritised to the lower levels grades while senior management received lower increases. Increases in other countries varied based on economic conditions, in ation, market trends and internal comparability. FY23 STI Weight (%) Threshold (80%) Target (100%) Stretch (120%) Revenue 25 2% below target On-target 2% above target Core HEPS 25 10% below target On-target 10% above target Free cash ow 25 10% below target On-target 10% above target Subscriber growth South Africa 6.3 5% below target On-target 5% above target Subscriber growth Rest of Africa 6.3 5% below target On-target 5% above target Subscriber growth online 6.3 5% below target On-target 5% above target Insurance policyholder growth 6.3 5% below target On-target 5% above target Total 100 Long-term incentives In FY23, the outcome of the 2020 PSU awards vested as detailed in the table below. FY23 LTI Weight (%) Threshold (50% vesting) Target (75% vesting) Stretch (100% vesting) Core HEPS(1) 25 5% below target On-target 5% above target Free cash ow (cumulative)(2) 50 5% below target On-target 5% above target Return on capital employed(3) 25 5% below target On-target 5% above target Total 100 3 The implementation report (1) As the target was set at the outset of COVID-19, they were based on uncertain and volatile economic conditions that in uenced forecasts. Management took full advantage of the crisis and uncertainty in the market to aggressively outperform against expectations. Operational performance was strong throughout the three-year period, with subscriber numbers growing by 4.0m 90-day active subscribers, notwithstanding a challenging economic environment, including the impact of COVID-19 and increasing competition from OTT. This was supplemented by strong cost discipline resulting in cumulative savings of R3.9bn. This strong operational performance resulted in the group signi cantly exceeding the target. Corporate governance review Phuthuma Nathi Investments (RF) Limited Integrated annual report 2023 118 Remuneration report continued
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