REWARDING

PERFORMANCE

REWARDING PERFORMANCE

REMUNERATION POLICY IMPLEMENTATION REPORT

REMUNERATION POLICY IMPLEMENTATION 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

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 2022 were audited by Mazars – these outcomes appear in Performance against strategy. 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.

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

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 2022 were audited by Mazars – these outcomes appear in Performance against strategy. 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.

Non-executive remuneration

The non-executive directors receive fees for serving on the Board and Board Committees.

The fees for non-executive directors are recommended by the Human Resources and Remuneration Committee to the Board for consideration. The Board recommends the fees to members for approval at the SAICA annual general meeting. They are disclosed in the audited financial statements.

Non-executive remuneration

The non-executive directors receive fees for serving on the Board and Board Committees.

The fees for non-executive directors are recommended by the Human Resources and Remuneration Committee to the Board for consideration. The Board recommends the fees to members for approval at the SAICA annual general meeting. They are disclosed in the audited financial statements.

Executive remuneration

In line with King IVTM, the table below is a disclosure of the SAICA Executive Directors’ and CFO’s remuneration (in R’000) using the single-figure view for the period 01 January 2022 – 31 December 2022.

CATEGORY NAMES BASE SALARY BENEFITS STI OTHER TOTAL
Chief Executive Officer
Mr SF Nomvalo
4 705
-
-
-
4 705
Chief Operating Officer
Mrs FL Lamola
3 058
378
-
-
3 436
Executive Director - Learning, Development and National Imperatives
*Mrs CC Mulder
758
83
-
-
841
Executive Director – Learning, Development and National Imperatives
****Mr R Zwane
2 018
303
-
-
2 321
Executive Director - Governance
Mr JHD Snyman
2 128
281
-
-
2 409
Executive Director - Standards
***Mr M Segal
1 748
231
-
-
1 979
Executive Director - Standards
***Mr P Faber
148
17
-
-
165
Chief Financial Officer
Mr NO Nekhavhambe
2 379
357
-
-
2 736
Pages 60 and 61 of  the Audited Financial Statements have reference.
  • * Prorated for two months
  • **Acting in position for five months and subsequently permanently appointed effective 01 June 2022
  • *** Prorated for eleven months
  • ****Acting in position for one month

Executive remuneration

In line with King IVTM, the table below is a disclosure of the SAICA Executive Directors’ and CFO’s remuneration (in R’000) using the single-figure view for the period 01 January 2022 – 31 December 2022.

CATEGORY NAMES BASE SALARY BENEFITS STI OTHER TOTAL
Chief Executive Officer
Mr SF Nomvalo
4 705
-
-
-
4 705
Chief Operating Officer
Mrs FL Lamola
3 058
378
-
-
3 436
Executive Director - Learning, Development and National Imperatives
*Mrs CC Mulder
758
83
-
-
841
Executive Director – Learning, Development and National Imperatives
****Mr R Zwane
2 018
303
-
-
2 321
Executive Director - Governance
Mr JHD Snyman
2 128
281
-
-
2 409
Executive Director - Standards
***Mr M Segal
1 748
231
-
-
1 979
Executive Director - Standards
***Mr P Faber
148
17
-
-
165
Chief Financial Officer
Mr NO Nekhavhambe
2 379
357
-
-
2 736
Pages 60 and 61 of  the Audited Financial Statements have reference.
  • * Prorated for two months
  • **Acting in position for five months and subsequently permanently appointed effective 01 June 2022
  • *** Prorated for eleven months
  • ****Acting in position for one month

Key focus and value-creating activities for the period under review

All HR & REMCO committee members were impacted by the SAICA Board member rotation at the SAICA AGM on 26 May 2022, leading to a completely new committee composition. After a successful handover, induction for new committee members was undertaken.

 

During the year we placed focus on:

  • The HR & REMCO workplan, including high-level oversight on HC strategy implementation (employee engagement, enablement and experience)
  • Considering the annual salary review and short-term incentive payment and recommending to the Board for approval
  • The Remuneration and Reward Policy review process initiation
  • Board succession planning (IoDSA training and policy development)
  • HR & REMCO continuous professional development.
  • Reviewing and addressing HR & REMCO matters regarding the Board Effectiveness Review March 2022 Action Plan
  • Reviewing the Human Capital policy universe
  • Considering and recommending SAICA’s balanced scorecard for 2022 and 2023 to the Board (including divisional balanced scorecards)

Key focus and value-creating activities for the period under review

All HR & REMCO committee members were impacted by the SAICA Board member rotation at the SAICA AGM on 26 May 2022, leading to a completely new committee composition. After a successful handover, induction for new committee members was undertaken.

 

During the year we placed focus on:

  • The HR & REMCO workplan, including high-level oversight on HC strategy implementation (employee engagement, enablement and experience)
  • Considering the annual salary review and short-term incentive payment and recommending to the Board for approval
  • The Remuneration and Reward Policy review process initiation
  • Board succession planning (IoDSA training and policy development)
  • HR & REMCO continuous professional development.
  • Reviewing and addressing HR & REMCO matters regarding the Board Effectiveness Review March 2022 Action Plan
  • Reviewing the Human Capital policy universe
  • Considering and recommending SAICA’s balanced scorecard for 2022 and 2023 to the Board (including divisional balanced scorecards)

Future focus areas for 2023 and beyond

We are excited about the implementation of a human capital information system, commencing in 2023. This will enable efficient execution of all components of the human capital processes and give effect to the implementation of the Remuneration Policy and other related policies.

The committee will participate and contribute in the SAICA 2024–2026 strategy review and consider the resulting balanced scorecards and recommend these for approval to the Board. We will provide oversight of the review of the target operating model, should the new strategy necessitate a change to it, to ensure a relevant structure to facilitate successful implementation of the strategy.

To ensure that we remain at the forefront of leading practices we will maintain our HR & REMCO continuous professional development.

Oversight of the strategic actions in response to the outcomes of the employee engagement survey will continue.

As always the HR & REMCO workplan will be attended to including high-level oversight on HC strategy implementation (employee engagement, enablement and experience), and the annual salary review and short-term incentive payment and recommending to the Board for approval.

Future focus areas for 2023 and beyond

We are excited about the implementation of a human capital information system, commencing in 2023. This will enable efficient execution of all components of the human capital processes and give effect to the implementation of the Remuneration Policy and other related policies.

The committee will participate and contribute in the SAICA 2024–2026 strategy review and consider the resulting balanced scorecards and recommend these for approval to the Board. We will provide oversight of the review of the target operating model, should the new strategy necessitate a change to it, to ensure a relevant structure to facilitate successful implementation of the strategy.

To ensure that we remain at the forefront of leading practices we will maintain our HR & REMCO continuous professional development.

Oversight of the strategic actions in response to the outcomes of the employee engagement survey will continue.

As always the HR & REMCO workplan will be attended to including high-level oversight on HC strategy implementation (employee engagement, enablement and experience), and the annual salary review and short-term incentive payment and recommending to the Board for approval.

CONCLUSION

In conclusion, the committee confirms that all decisions in relation to remuneration were made in line with the organisations Remuneration Policy and that there were no deviations from the policy in the reporting period.

CONCLUSION

In conclusion, the committee confirms that all decisions in relation to remuneration were made in line with the organisations Remuneration Policy and that there were no deviations from the policy in the reporting period.

Ms Yasmin Forbes

Chairperson: Human Resources and Remuneration Committee

Ms Yasmin Forbes

Chairperson: Human Resources and Remuneration Committee

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SAICA Integrated Report 2022.
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SAICA Integrated Report 2022. All Rights Reserved.

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