Page 93 - Capricorn IAR 2020

Non-executive remuneration for the next financial year
Remuneration Policy voting results
0.16%
Against
2020 INTEGRATED ANNUAL REPORT
Non-binding advisory vote
At the annual general meeting (“AGM”) on 29 October 2019, shareholders had the opportunity to cast a non-binding advisory vote on the Remuneration Policy and the remuneration of the NEDs for the financial year ending 30 June 2020.
Remuneration Policy
(% of issued shares)
(% of issued shares)
The voting results clearly show support for the Remuneration Policy. Accordingly, no changes were made to the policy. The implementation of the policy for the financial year is reflected in part three, allowing shareholders to observe the way the Group’s stated policies translate into actual outcomes for senior management and executives. As in previous years, shareholders will be requested to cast a non-binding advisory vote at the forthcoming AGM on the Remuneration Policy contained in part two and the report on the implementation of the policy contained in part three of this report.
• Variable pay component – The variable pay component of the total reward increases with seniority (organisational level) as the ability to impact business results increases. This is reflected in the quantum of the opportunities offered by
the short- and long-term incentives for more senior levels compared to junior employees.
• Performance aligned with strategy – Performance is the cornerstone of reward practices, and there is a clear differentiation between performers and non-performers. Performance measures are an inclusive collective process that focuses on both the “what” and the “how”. The “what”
is measured using an approach that focuses on the 5Cs: Company, Colleague, Citizenship, Conduct and Customer. The “how” is measured in terms of The Capricorn Way and how the employee lives the behaviours. The reward consequences for individual employees are, as far as possible, linked to and influenced by the interests of the shareholders, the performance of the company as a whole and the individual employee contribution.
• Risk containment – Reward plans are structured to mitigate excessive risk-taking.
• Consistency – The reward philosophy strives to be both consistent and transparent. Benchmarking is performed annually using consistent and recognised methodologies. The differential market value of various skill groups and roles is reflected in pay practices.
• Attraction and retention – The focus is on competitive remuneration practices that attract, engage and retain talent to deliver on the business strategy. Capricorn Group did an extensive review during the September 2018 increase cycle to address any potential gaps between gender and race, as well as the complexity of work. This now forms part of our annual review discipline. We are comfortable that we are applying leading practices across the region.
Part two: Overview of the Group
The Group’s Remuneration Philosophy aims to ensure that all employees are rewarded fairly and appropriately for their contribution. In setting remuneration levels, the Group board human resources committee and the Remco take appropriate market benchmarks into account, while ensuring that sufficient emphasis is placed on pay for performance. The Group board human resources committee is responsible for the remuneration of general employees while the focus of the Remco is on executive management, managing directors and NEDs. This approach helps to attract, engage, retain and motivate key employees while ensuring that their behaviour remains consistent with Capricorn Group’s values as articulated in The Capricorn Way. The Group’s guiding principles for managing remuneration are as follows:
• Total rewards mindset – Reward is viewed in a holistic manner and comprises a range of monetary (fixed and variable) and non-monetary components.
• Performance differentiation – There is strong differentiation based on performance, particularly for senior, specialist and leadership roles where line of sight to strategic choices is evident.
• Manager discretion – Management discretion is central to the Capricorn Group’s Remuneration Philosophy and is based on the requirement that the reward must always be based on merit.
100%
Approved
99.84%
Approved
91