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Performance-based incentives
We provide different incentives to employees to reward performance on a short- and long-term basis:
Incentive category
Purpose
Incentive plan
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).
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
.
•
•
2016 MTN employee share
ownership plan (ESOP)
3
.
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 black employee equity (BBBEE) scheme.
3
Award of 516 shares made in 2017 to designated employees.
Remuneration report
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.
During the year, we reviewed our performance
bonus policy. This review was necessitated as a
response to the existing business challenges
and associated people impact and industry
practice. After benchmarking our existingmodel,
the board approved the following changes
effective for the 2018 financial year:
•
•
Revision of the threshold performance for
a bonus to be declared.
•
•
Revision of associated performance metrics
including the introduction of a non-financial
metric.
•
•
Simplification of the existing model for ease
of understanding.
Metric description
Metric type
MTN subsidiaries
Weighting Head Office
Weighting
Financial
Revenue
25%
Revenue
20%
Financial
EBITDA
25%
EBITDA
20%
Financial
Group attributable
earnings
0%
Group attributable
earnings
20%
Financial
Operating cash flow
(cash generated from
operations)
25%
Operating cash flow
(cash generated from
operations)
20%
Non-financial
Competitive
performance
25%
Competitive
performance
20%
86
MTN Group Limited
Integrated Report 2017