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REMUNERATION REPORT
FOR THE YEAR ENDED 31 DECEMBER 2011
REMUNERATION REPORT
KUMBA’S REMUNERATION PHILOSOPHY
Kumba’s remuneration practices are based on the following tenets:
element in support of Kumba’s strategy; and
in relation to job responsibility, the employment market and
personal performance.
Kumba’s overall remuneration philosophy has remained unchanged
since the listing of the company in 2006. However, some
components of the remuneration elements were reviewed and
amended during 2011.
The Human Resources, Remuneration and Nomination Committee
of the board of directors (Remco) has the task of applying principles
of accountability and transparency to remuneration matters, so that
the remuneration of directors and executive management is linked to
performance and supports the group’s strategy, with the ultimate aim
of creating value for shareholders.
This report deals with the group’s Remuneration Policy, as well as
the remuneration of directors and executive management for the
2011 financial year. It includes:
for directors and executive management and its support of
group strategy;
during 2011;
directors and executive management;
Committee, including executive directors;
detailed descriptions of the various long-terms incentive awards
and other information relating to 2011 payments.
HIGHLIGHTS
During the year the Remco focused specifically on:
assessing pay for performance according to the targets set in
terms of achieving Kumba’s goals;
the principles and recommended practices of the King Code of
Governance Principles for South Africa 2009 (King III);
the SIOC Employee Share Participation Scheme which was
implemented five years ago, and matured on 17 November 2011;
mature in 2016; and
THE REMCO
The Remco has functioned as a sub-committee of the board since
Kumba’s listing in 2006. When considering remuneration matters,
it focuses on the company’s remuneration philosophy, on the
determination of levels of remuneration and on annual and long-term
incentive plans. The underlying philosophy is to offer remuneration
that will attract, retain, motivate and reward directors, executive
management and those employees who manifest the competencies
required for the company to achieve its strategy, and to offer
remuneration that is based on individual and company performance
in accordance with competitive market practices.
The role of the Remco in relation to the remuneration of directors
and executive management is to:
executive directors;
pay and incentive schemes for directors and executive management;
directors and executive management, including short-term
incentive payments and long-term incentive share awards; and
term incentive schemes are made.
The role of the Remco in relation to the remuneration of employees
generally is to:
adjustments;
are based;
long-term incentive schemes to staff are made;
employees; and
to employees.
During the year the members of the Remco comprised the
following members:
Mr AJ Morgan (chairman) and Mr PB Matlare. Both Mr Morgan and
Mr Matlare are independent non-executive directors.
Details of the directorate are available on page 86 of the Integrated
Report 2011 as well as on the company’s website at:
www.angloamericankumba.com/au_directorate.php.
IR Page 86
Audited annual financial statements
Annual Financial Statements 2011
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