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Implementation report
Key components of our remuneration structure
Although the Head Office 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 of total reward.
Annual fixed package
(AFP)^
(fixed + benefit plans)
Short-term incentive
(STI) schemes
Long-term incentive
(LTI) schemes
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
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MTN Group Limited
Integrated Report 2017