2007 Annual Report - Sappi

37. Directors’ remuneration continued
Our pay philosophy aims to provide executives with remuneration which allows them to enjoy similar and appropriate
standards of living and at the same time to create wealth equally no matter where they live and work.
Whilst the payment of executives in different currencies creates perceived inequities, due attention is given to ensure that
internal equity exists and is maintained, through comparisons against cost of living indices and the manner in which pay is
structured in the various countries.
Bonus and performance related payments are based on corporate and individual performance. Under this, executives may
be awarded up to 110% of their annual salary if group and personal performance objectives as agreed by the compensation
committee are met. Bonuses relate to amounts paid in the current year, but based on the previous year’s performance.
Average exchange rates for the year concerned are again applied in the tables in converting the currency of payment into
US Dollars.
Executive directors (4) 2007
Prior
Benefit
year Contributions received
bonuses Sums paid under from
and paid pension Credit
performance by way of and Scheme
related expense medical aid Share
` Salary payments (9) allowance schemes Funding Other Total
US$
W Pfarl (1) 536,552 255,071 2,708 132,087 – 393,688 1,320,106
M R Thompson 272,354 84,910 448 100,515 – – 458,227
E van As (2) 696,953 – – – – 146,360 843,313
R J Boëttger (3) 161,737 – – 46,412 516,248 – 724,397
1,667,596 339,981 3,156 279,014 516,248 540,048 3,346,043
(1) Retired June 2007. Mr Pfarl received a pension disbursement benefit of US$346,085 included in other benefits.
(2) Mr van As received a salary of US$696,953 (ZAR5 million) while acting as chief executive officer. Includes board fees paid to Mr van As for the period September
2006 till August 2007 when his executive responsibilities terminated upon the appointment of Mr Boëttger as chief executive officer. Mr van As then resumed
his non-executive chairman responsibilities.
(3) Appointed as chief executive officer in July 2007. Mr Boëttger received 35,000 restricted shares which vest on 31 December 2007 included under benefit
received from credit scheme share funding. A share based expense of US$516,248 was recognised in the current year income statement, based on a share
price of ZAR106.00.
(4) Executive directors are paid remuneration packages which aim to be competitive in the countries in which they live and work, and they are generally paid in
the currency of those countries.
sappi limited | 07 | annual report 171