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Our people and their remuneration
continued
Case studies for three levels at Group
At the beginning of the year, the Group’s attributable earnings (GAE) target for calculating bonuses at the end
of the year was R10 billion. For bonus purposes, a 90% minimum achievement of R9 billion was required and
a maximum of R12 billion applicable. Using the following assumptions, the bonuses for the three employee
levels: executive director, senior manager and employee level 2 will be as follows:
Assumptions
Executive
director
Senior manager
employee
General staff
level 2
(bonus declared)
General staff
level 2
(bonus not
declared)
Annual salary
R2 000 000
R1 000 000
R400 000
R400 000
Bonus elements
Company
1
100% (50%
weighting)
100% (20%
weighting)
Not applicable Not applicable
Team
2
75%
(2a)
(50%
weighting)
100%
(2b)
(50%
weighting)
100%
(2b)
(50%
weighting)
100%
(2b)
(50%
weighting)
Employee
3
Not applicable
150%
(3a)
(30%
weighting)
133%
(3b)
(50%
weighting)
133%
(3b)
(50%
weighting)
On-target bonus (%)
80%
20%
9%
4,5%
Maximum bonus (%)
160%
30%
12%
6%
Calculation formula
(100% x 50%)
plus
(75% x 50%)
plus
zero
equals 87,5%
(100% x 20%)
plus
(100% x 50%)
plus
(150% x 30%)
equals 115%
Zero plus
(100% x 50%)
plus
(133% x 50%)
equals 66,5%
Zero plus
(100% x 50%)
plus
(133% x 50%)
equals 66,5%
Final bonus (%)
4
87,5% x 80%
equals 70%
115% x 20%
equals 23%
66,5% x 9%
equals 6%
66,5% x 4,5%
equals 3%
Final bonus payable
R1 400 000
R230 000
R24 000
R12 000
1
It is assumed that the Company performance was achieved 100%.
2
It is assumed that the team performance was achieved as follows:
2a
75% for executive director.
2b
100% for senior management and general staff level 2.
3
It is assumed that employee performance was as follows:
3a
150% for senior management.
3b
133% for general staff level 2.
4
On target bonus is respectively:
– 80% for executive director;
– 20% for senior management;
– 9% for general staff where a bonus is declared; and
– 4,5% for general staff where a bonus is not declared.
Refer to the next section for parameters applicable to executive committee members.
Remuneration report
continued
MTN Group Limited
Integrated Report 2016
76