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Executive pay composition
Executives are remunerated in line with short-
and long-term business objectives using an
optimal mix of fixed pay, and short- and long-
term incentives. This supports the alignment of
strategy and desired individual behaviour. The
mix is aimed at ensuring that executives
proportionately achieve an optimal balance of
remuneration when executing their duties.
King IV recommends the disclosure of
remuneration elements offered in the
organisation and the mix of these. The following
graphs illustrate the mix of minimum, on-target
and potential maximum compensation for the
two director positions: group president and CEO,
and the group chief financial officer (CFO).
0
100
200
300
400
500
0
100
200
300
400
500
■
TFP
■
STI
■
LTI
Group
president
and CEO
target
Group
president
and CEO
maximum
Group
CFO
target
Group
CFO
maximum
Group president and CEO and
group CFO pay mix
100
100
200
100
200
200
100
100
175
100
175
175
(%)
50
40
300
200
100
0
As illustrated above, the proportion of fixed to
performance-based incentives varies between
the group president and CEO and the group
CFO. Both roles comprise a higher weighting on
performance incentives ‘risk pay’ and less on
fixed package. While the fixed package does not
vary based on individual performance, the
variable portion does. The group’s integrated
performance framework (IPF) guides the
execution of business strategy by providing a
framework through which the day-to-day and
annual performance levels are set, cascaded
and measured according to the business’s
strategic KPIs. The IPF outcomes are translated
into incentive payments under the performance
bonus plan.
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, or where applicable, the remuneration
committee.
To attract key senior employees, it is sometimes
necessary to compensate them for the loss of
their equity in their previous companies. In 2017,
the board approved that, upon joining the
company, the following executives be granted
a cash-settled on-boarding incentive to
compensate them for the pre-tax amount of
stock or equity they relinquished in terms of
contractual agreements with their previous
employers.
Incentive
grant
price
Incentive
maturity
date
Number of
units^
granted
Value of
incentive at
grant date
Rob Shuter
R125,09
12/03/2020
327 214 R40 931 199
Ralph Mupita
R113,10
28/10/2019
446 027
R50 445 654
Jens Schulte-Bockum
R127,60
15/01/2020
64 423
R8 220 375
^ Units are the equivalent of an MTN Group share
MTN Group Limited
Integrated Report 2017
85
Governance, people
and remuneration