Rewarding performance (Remuneration Report)

The remuneration policy, which determines the structure of the remuneration packages into fixed salary and variable pay, represented by a short-term incentive and benefits, remained unchanged during the year. SAICA’s performance management process is directly linked to annual increases in total cost to company and annual short-term incentive bonuses.

Performance review and moderation sessions took place regularly throughout the year where the organisational performance, divisional and individual achievement of key performance indicators (KPIs), and delivery on key strategic objectives are discussed. All employees are rewarded for achieving performance targets as set out in their annual performance contracts. The performance score of an employee is based on a weighted average, which takes into consideration three elements:

• The performance of SAICA
• The performance of the division within which the employee operates, and
• The employee’s individual performance

The three elements are weighted differently depending on the level of seniority of each employee. The respective element weighting takes into consideration the level of authority and influence an employee carries, with higher-level employees carrying a higher percentage of SAICA’s performance. The Board chairperson oversaw the performance assessment of the CEO.

SAICA increases were awarded based on the performance managed through the Remuneration and Reward Policy in conjunction with the Performance Management Policy. Only employees who received the qualifying individual performance received salary increases. The salary scales per grade were benchmarked and SAICA salary scales were found to be competitive.

The Board approved the annual salary increase percentage and the STI pool following the performance evaluations and the financial affordability recommended by the Human Resources and Remuneration Committee and Audit and Risk Committee.

Normal annual salary increases were moderated by the executive committee to ensure equity across the organisation before they were recommended for approval by the Human Resources and Remuneration Committee. Outcomes of the balanced scorecard for 2023 were audited by Mazars – (See performance against strategy) for these outcomes. There were no ad hoc salary adjustments during the year. A succession planning framework was developed and investment in skills training and development continued. (See details of human capital initiatives). Looking forward, the investment in a human capital information system will enable the automation of all components of the human capital strategy, including the automation of performance management.