REWARDING

PERFORMANCE

REWARDING PERFORMANCE

(REMUNERATION REPORT)

SAICA’s remuneration philosophy is to offer market-related compensation and recruit and retain the necessary talent required to successfully execute the SAICA strategy and ensure sustainability.

Introduction

This report seeks to ensure that members gain an insight into how remuneration decisions are made, enabling them to assess the outcome of those decisions.

The alignment of remuneration to the long-term strategic goals of SAICA to deliver sustainable performance remained a key focus during the year. Remuneration practices were aligned with our performance and strategic objectives set for the 2022 financial year.

The Board reviewed the Remuneration and Reward Policy in November 2022, and found that the fundamentals of the remuneration policy and guiding principles were still applicable. However, a remuneration service provider took into account a few issues relating to policy execution and referred them for benchmarking. The benchmark’s outcomes will be applied to enhance SAICA’s remuneration procedures. This will further ensure that SAICA keeps an eye on market conditions to remain appropriately positioned to execute its overall strategy.
The COVID-19 pandemic engulfed the entire globe and it culminated in the governance of remuneration remaining a critical feature of the corporate governance landscape over the last three years. On a positive note, this has fast-tracked the adoption of alternate working arrangements, and SAICA, like many other organisations, has had to review its employee value proposition, especially as it relates to virtual working considerations. SAICA continues with a hybrid working model and supported employees with the necessary tools to enable them to remain productive. SAICA is evaluating the impact of occupational health and safety in the hybrid working model where employees work both remotely and in the office. It is against this background that succession planning is regarded as one of the key enablers.

A large portion of our remuneration structure is made up of fixed-total guaranteed package and a small portion comprising short-term incentives (STI).

(REMUNERATION REPORT)

SAICA’s remuneration philosophy is to offer market-related compensation and recruit and retain the necessary talent required to successfully execute the SAICA strategy and ensure sustainability.

Introduction

This report seeks to ensure that members gain an insight into how remuneration decisions are made, enabling them to assess the outcome of those decisions.

The alignment of remuneration to the long-term strategic goals of SAICA to deliver sustainable performance remained a key focus during the year. Remuneration practices were aligned with our performance and strategic objectives set for the 2022 financial year.

The Board reviewed the Remuneration and Reward Policy in November 2022, and found that the fundamentals of the remuneration policy and guiding principles were still applicable. However, a remuneration service provider took into account a few issues relating to policy execution and referred them for benchmarking. The benchmark’s outcomes will be applied to enhance SAICA’s remuneration procedures. This will further ensure that SAICA keeps an eye on market conditions to remain appropriately positioned to execute its overall strategy.
The COVID-19 pandemic engulfed the entire globe and it culminated in the governance of remuneration remaining a critical feature of the corporate governance landscape over the last three years. On a positive note, this has fast-tracked the adoption of alternate working arrangements, and SAICA, like many other organisations, has had to review its employee value proposition, especially as it relates to virtual working considerations. SAICA continues with a hybrid working model and supported employees with the necessary tools to enable them to remain productive. SAICA is evaluating the impact of occupational health and safety in the hybrid working model where employees work both remotely and in the office. It is against this background that succession planning is regarded as one of the key enablers.

A large portion of our remuneration structure is made up of fixed-total guaranteed package and a small portion comprising short-term incentives (STI).

Remuneration Governance

SAICA has sought to align its practices to good governance regarding remuneration, which in South Africa, is primarily informed by the King IVTM – Principle 14. This principle requires that ‘the governing body should ensure that the organisation remunerates fairly, responsibly and transparently so as to promote the achievement of strategic objectives and positive outcomes in the short, medium and long-term’.

The Human Resources and Remuneration Committee comprises of at least three members of the Board with relevant experience. The chairperson of the committee is Ms Yasmin Forbes. The Board Secretary is the secretary for the committee. The Executive Directors / Management are not members of the committee but attend meetings by invitation only and recuse themselves when conflicts arise, particularly when their performance and remuneration are discussed.

Remuneration Governance

SAICA has sought to align its practices to good governance regarding remuneration, which in South Africa, is primarily informed by the King IVTM – Principle 14. This principle requires that ‘the governing body should ensure that the organisation remunerates fairly, responsibly and transparently so as to promote the achievement of strategic objectives and positive outcomes in the short, medium and long-term’.

The Human Resources and Remuneration Committee comprises of at least three members of the Board with relevant experience. The chairperson of the committee is Ms Yasmin Forbes. The Board Secretary is the secretary for the committee. The Executive Directors / Management are not members of the committee but attend meetings by invitation only and recuse themselves when conflicts arise, particularly when their performance and remuneration are discussed.

Remuneration roles and responsibilities

The committee’s main purpose is to ensure that SAICA’s remuneration practices and policies are aligned with good corporate governance. The committee acts as a formal sub-committee of the Board and has the power to recommend to the Board for approval a developed strategy and supportive policies for the acquisition, management, retention and fair and responsible remuneration of Human Capital in accordance with statutory regulations, governance requirements and best practice.

The functions of the committee include, but are not limited to:
  • Considering SAICA’s balanced scorecard for the year and recommending approval to the SAICA Board
  • Being primarily responsible for oversight of remuneration
  • Recommending to the Board issues relating to its responsibility for the governance of remuneration by setting the direction for how remuneration should be approached and addressed on an organisation-wide basis
  • Recommending a policy to the Board for approval which articulates and gives effect to its direction on fair, responsible and transparent remuneration

The committee also oversees the overall governance of Human Capital management, setting and administering remuneration policy framework and strategy at SAICA and provides the Board with assurances in this regard.

The committee seeks to assist the Board to ensure that appropriate remuneration policy and philosophy that is aligned with its long-term strategy, objectives and risk appetite are in place, with specific focus of ensuring that:
  • The remuneration policy and philosophy are appropriately and consistently applied throughout SAICA
  • Informed decisions pertaining to the acquisition, management, development and retention of its human capital are made
  • The performance outputs of SAICA and that of its Executive Directors / Management are reviewed
  • Remuneration of Board members and Executive Directors / Management is fair and responsible

The chairperson of the committee reports to the Board on the activities of the committee at Board meetings. For the period under review, the committee is satisfied that it has fulfilled all its statutory duties assigned by the Board.

Remuneration roles and responsibilities

The committee’s main purpose is to ensure that SAICA’s remuneration practices and policies are aligned with good corporate governance. The committee acts as a formal sub-committee of the Board and has the power to recommend to the Board for approval a developed strategy and supportive policies for the acquisition, management, retention and fair and responsible remuneration of Human Capital in accordance with statutory regulations, governance requirements and best practice.

The functions of the committee include, but are not limited to:
  • Considering SAICA’s balanced scorecard for the year and recommending approval to the SAICA Board
  • Being primarily responsible for oversight of remuneration
  • Recommending to the Board issues relating to its responsibility for the governance of remuneration by setting the direction for how remuneration should be approached and addressed on an organisation-wide basis
  • Recommending a policy to the Board for approval which articulates and gives effect to its direction on fair, responsible and transparent remuneration

The committee also oversees the overall governance of Human Capital management, setting and administering remuneration policy framework and strategy at SAICA and provides the Board with assurances in this regard.

The committee seeks to assist the Board to ensure that appropriate remuneration policy and philosophy that is aligned with its long-term strategy, objectives and risk appetite are in place, with specific focus of ensuring that:
  • The remuneration policy and philosophy are appropriately and consistently applied throughout SAICA
  • Informed decisions pertaining to the acquisition, management, development and retention of its human capital are made
  • The performance outputs of SAICA and that of its Executive Directors / Management are reviewed
  • Remuneration of Board members and Executive Directors / Management is fair and responsible

The chairperson of the committee reports to the Board on the activities of the committee at Board meetings. For the period under review, the committee is satisfied that it has fulfilled all its statutory duties assigned by the Board.
REMUNERATION PHILOSOPHY

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SAICA Integrated Report 2022.
All Rights Reserved.

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SAICA Integrated Report 2022. All Rights Reserved.

Site Links

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Head Office