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Package approaches
Local employees
Generally, employees based in their home countries
are remunerated on an annual fixed package
approach, which includes a combination of base
remuneration and benefit provisions, commonly
referred to as fixed remuneration. The Group has
implemented this approach subject to labour
regulations and remuneration practices. Non-South
Africa-based operations have adopted and
customised this approach in accordance with local
practices and regulations.
Expatriate employees
MTN deploys international talent (expatriates)
among our operations where this is of value and as
part of our talent mobility efforts. Although expatriate
employees are employed on a full-time basis and
with access to other benefits provided to local
employees, their contracts are limited to a fixed
duration, typically two years.
In line with the frequency of talent mobility across
operations, during 2015 we reviewed the expatriate
pay model to introduce a greater degree of relative
internal pay equity across the various operations.
The choice of the United Arab Emirates as the global
employment company for the purpose of expatriate
compensation management allows us to standardise
Performance-based incentives
We provide different incentives to employees to reward performance on a short and long-term basis:
Incentive category
Purpose
Incentive plan
•
Short-term incentives
(STI schemes)
•
To reward the achievement of
set goals up to one year
•
December incentive plan
(4% incentive plan)
•
Performance bonus plan
(bonus plan)
•
Sales commission plan
(commission scheme)
•
Long-term incentives
(LTI schemes)
•
To reward the achievement of
set goals in the long run
•
Share Appreciation Rights
Scheme (SARS)
1
•
Share Rights Plan (SRP)
1
•
Performance Share Plan (PSP)
•
Notional Share Option Scheme
(NSO)
•
Employee Share Ownership
Plan (ESOP)
2
1
Both SARS and SRP are active but no longer issuing new awards. They were substituted with the PSP.
2
Once-off award of 400 shares made in 2010 to lower level employees under the Broad-Based Employee Equity Scheme (BBBEE).
expatriate base-pay levels in all countries within one
pay structure in a global reserve/hard currency. This
base-pay foundation is consistent for all assignees
with only country-specific dynamics being added
on, resulting in an MTN framework which represents
a balance between relative equity across the Group,
and local relevance.
MTN continues to prefer the employment of local
talent in operating companies. Notwithstanding
the above base-pay structure, the standardisation
and optimisation process for expatriate benefits
remains a priority. Where possible, within regulatory
requirements, MTN continues to standardise
expatriate employment contract conditions with
the goal of adopting one framework across
operations. This initiative is a gradual process due
to legislation.
Other special arrangements
As a method to employ people in certain identified
senior roles, under certain circumstances,
employment and termination of employment
negotiations result in cash-payment arrangements
in the form of lump sums. Where lump sums are
mutually considered as sign-on, retention or
termination payments, these are subject to the
approval of the Group president and CEO. Refer to
the executive emoluments for full disclosure of the
amounts paid in the year.
MTN Group Limited
Integrated Report 2016
73
GOVERNANCE,
PEOPLE AND
REMUNERATION