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Description of performance criteria
•
The financial performance targets of the Company are
determined in accordance with the strategic themes at
the beginning of the year.
•
A factual findings engagement is performed on these
results by an independent body.
•
The percentage performance achievement against target
is translated into a nominal performance-linked scale,
adjusted to allow for maximum earning potential.
•
Group attributable earnings are used at Group level and
EBITDA, revenue and cash flow are used at operational
level to measure Company performance.
•
The strategic themes are translated into priorities to be
executed at executive member levels.
•
Depending on the size of the function, and where
applicable, team performance scorecards are further
cascaded to below executive levels.
•
Achievement of each KPI is proportionate and weighted;
however, cumulatively they add up to 100%.
•
At the beginning of each financial period, every employee
enters into a contractual performance agreement.
•
The performance agreement stipulates the performance
expectations to be measured at year-end.
•
Performance agreements ensure alignment between
Company, team and individual levels.
•
This is not applicable to executives.
2
Team performance (TP)
•
Strategic themes are translated
into priorities
•
Team priorities are further
cascaded down
3
Employee performance (EP)
•
Alignment of individual
performance contracts with the
departmental targets
•
Each KPI set within the integrated
performance framework (IPF)
principles
Our people and their remuneration
continued
Short-term incentives
Annual performance bonus
With the exception of sales-commission employees,
all other employees participate in an annual
performance-based bonus plan. The principles of
the bonus plan are aligned primarily with the
performance achievements of the Company, and
secondarily teams and individual priorities. This
implies a bonus becomes payable once the board is
satisfied that the minimum Company performance
levels have been achieved.
The process of determining the incentive award
pools from which performance bonuses are paid is
illustrated below.
Remuneration report
continued
1
Company performance (CP)
•
MTN Group: attributable earnings
•
Opco: revenue, cash flow, EBITDA
MTN Group Limited
Integrated Report 2016
74