Full integrated annual report - African Bank - Investoreports

Remuneration report
This is a condensed version of the remuneration report. For more detailed information please
refer to our web-based remuneration report at:
http://africanbank.investoreports.com/africanbank_ar_2011/remuneration/
and to the remuneration policy in the Notice to the AGM on page 111 of this report.
Introduction
This report seeks to provide stakeholders with insight into and an
understanding of the remuneration philosophy and policies that are
adopted and applied across the group. Remuneration comprises normal
monthly salary, company contributions to retirement funds, bonuses and
incentives paid to employees and executive directors and fees paid to
non-executive directors.
Human capital is the most important asset required in carrying out the
group’s business in a differentiated way. The attraction and retention of
appropriate skills is an area that requires continuous focus at the highest
level of the organisation. In this regard, remuneration is one of the key
drivers of aligning behaviour of human capital to the strategic intent of
the group.
Remuneration is determined and structured to compensate, attract and
retain appropriately skilled staff whilst being aligned to the interests of
the stakeholders.
Remuneration governance
The board has a sub-committee, the group remuneration and
transformation committee (Remco), which comprises three independent
non-executive directors, tasked with assisting the board in formulating
and monitoring the implementation of the group’s transformation and
remuneration policies. The group’s policies are applicable to all the
subsidiaries including the foreign subsidiaries in Ellerines.
The group utilises the services of independent consulting companies
that specialise in remuneration and compensation, to assist with
benchmarking of staff and directors’ remuneration.
Remuneration philosophy
The group is acutely aware of its dependency on appropriately qualifi ed,
trained and experienced personnel to achieve its goals. The rapid
evolution of technology and increasing competition gives customers
more choice with regard to their preferred service provider and the
manner in which they choose to acquire goods and services, the
consequence of which is that there is no room for mediocre service
organisations to survive in the long term. Furthermore, the demand,
both locally and internationally, for scarce skills is ever-increasing,
which is exacerbated locally by increased competition in the unsecured
credit arena.
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