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Our people and their remuneration
continued
Key components of our remuneration structure
Although MTN Group Management Services applies a fixed remuneration package approach, the Company
accepts variations to the “base plus benefits” approach due to local market conditions. The fixed remuneration
approach includes cash and benefits in kind which, when combined with incentive payments and other non-
quantifiable elements, make up what we term “Total Reward”.
Our fixed pay component reflects general worth of skills compared against job worth, while incentive payments
are based on short- and long-term performance. Here we summarise the various pay components which
collectively make up Total Reward.
Annual fixed
package (AFP)^
(fixed + benefit plans)
Short-term
incentive schemes
(STIs)
Long-term
incentive schemes
(LTIs)
Recognition and
other benefits
Fixed pay
•
Fixed salary delivered
monthly.
•
Based on scope and
nature of the role.
•
Generally determined
around the market
median, but can vary
based on market
dynamics and
business goals.
•
Generally reviewed
annually.
Benefit plans
•
Provide economic
security for
employees.
•
Commonly include
retirement, health,
death, disability and
insurance.
Performance incentive
•
Variable Company-
provided incentives
aligned with the short-
term goals of the
Company, delivered
on an annual basis.
•
Performances up to
one year are
assessed and
rewarded for
achieving minimum,
stretch-target and
above-target
performances.
•
Aligns with financial
and strategic key
performance.
•
Individual, team
and Company
performance are
taken into
consideration, with
executive
performance
weighted towards
Company
performance.
•
At an operational
level, certain sales
positions participate
in a commission-
based incentive
scheme.
•
Variable incentives in
the form of share
allocations.
•
Drives long-term
sustainability and
performance of the
Group.
•
Potential payments
attributed to the
financial performance
of the Company.
•
Make up a larger
portion of total
executive
remuneration relative
to short-term and
fixed pay.
Recognition
•
Formal and informal
platform designed to
drive recognition
between employees
and departments,
both within and
across MTN’s
operations.
Other benefits
•
Other benefits are
typically excluded
from the fixed
package.
•
Include lifestyle
benefits, leave of
absence, and
additional insurance
products.
•
Although some of
these benefits are
not prevalent in all
operations, there
are country-specific
programmes
approved and aligned
with equivalent South
African benefits.
^ Please note the term “fixed package” as used should not promote a sense of entitlement or non-adjustability of the package, should
MTN deem this appropriate. The term, however, must be defined within the context and used synonymously with “annual fixed package”,
meaning that certain benefits such as contribution arrangements to medical aid, although fixed annually, may be adjusted as and when
the Company needs to.
Remuneration report
continued
MTN Group Limited
Integrated Report 2016
72