Remuneration report

Key elements of remuneration

    Fixed pay                    
    Base salaries       Non-executive directors’ fees       Retirement benefits     Other benefits  
Purpose and link to strategy
  
 

Provides a fixed level of earnings appropriate to the requirements of the role

   

Remunerates non-executive directors for their responsibilities and time commitment  

   

Provides the basis for retirement savings  

   

Provides benefits appropriate to the market and the role  

 
Application dependent on employee type
and level 
  
 

All employees

   

Non-executive directors 

   

All employees entitled to benefits are required to belong to an approved pension/provident fund 

   

All employees entitled to benefits are eligible for membership of an approved medical scheme and other benefits  

 
Operation and performance
  
  Base salaries

Base salaries are subject to annual review. Tsogo Sun’s policy is to be competitive at the median level with reference to market practice in companies comparable in terms of size, market sector, business complexity and international scope. However, base salaries of individuals and incumbents in key roles are aligned to the upper quartile level of the market. Group performance, individual performance and changes in responsibilities are also taken into consideration when determining increases to base salaries

    Non-executive directors’ fees

The fees for the non-executive directors have been recommended by the remuneration committee to the board for their approval, taking into account fees payable to non-executive directors of comparable companies and the importance attached to the attraction and retention of high calibre individuals as non-executive directors. Levels of fees are also set by reference to the responsibilities assumed by the non-executive directors in chairing the board and in chairing or participating in its committees

    Retirement fund membership

Retirement funding for management, who are remunerated on a total package basis, is non-contributory and is included in their total cost of employment. For staff, retirement funding consists of employer and employee contributions dependent on fund membership. The group offers a pension fund (Tsogo Sun Group Pension Fund) and two provident funds (Alexander Forbes Retirement Fund (Provident Section) and Gold Reef Resorts Provident Fund). Other approved funds include union-negotiated funds and funds to which members have historically belonged. Members of the Gold Reef Resorts Executive Provident Fund are in the process of being transferred to the group’s provident fund 

    Healthcare

The majority of employees with medical cover belong to the Tsogo Sun Group Medical Scheme, a restricted membership scheme administered by Discovery Health. The scheme offers hospital, chronic illness and day-to-day cover for 4 391 principal members (9 441 beneficiaries) through either comprehensive or saver type plan options

Risk and insured benefits

Arising through membership of the group’s pension and provident funds, competitive death, disability and funeral benefits are made available toemployees

Long-service awards

Full-time employees of the organisation receive long-service awards calculated basedon the tenure of the employee linked to their guaranteed package. Employees receive an award for every 10 years of continued service with the group