Remuneration report
Remuneration is linked directly to successful execution of strategy and employees are rewarded for value delivered
The organisation’s remuneration philosophy is aligned to the SANBS iHEALTh strategy (read more about our strategic priorities) in that it ensures that employees are able to work towards and promote the achievement of the strategic objectives within the organisation’s affordability
Remuneration Process
Strategic
Planning
DEVELOP iHEALTh ORGANISATIONAL SCORECARD
SET MEASURABLE GOALS. DEFINE KPIS AND KPAS FOR ALL STAFF
BI-ANNUAL PERFORMANCE MANAGEMENT DISCUSSIONS
REWARD AND
REMUNERATION
Our THREAD values lie at the heart of our philosophy
The remuneration approach is designed to support the behaviours, skills and superior performance required, to underpin and embed the desired organisational culture of accountability, excellence and performance.
The SANBS Remuneration framework is designed to support the attraction, engagement, and retention of our key talent that drives business strategy and execution, by motivating employees through:
Consultation and development of employees through employee value propositions
Connecting to
individual goals and
values
Collaboration and
engagement,
inspiring employees
to perform
Rewarding key talent
As part of the broader talent management framework, we have updated our Remuneration Policy to include pay progression opportunities, in that an increase to the minimum of the new pay scale or a 5% increase, whichever is greater, can be considered, for our key talent. The revised remuneration approach also includes the development of dual career paths for specialists and management roles.
The organisation encourages career growth and mobility for all employees, whilst we have also clearly identified our business imperative roles. During the period under review SANBS was able to process salary increases.
In attempting to build a total rewards approach, the SANBS Academy has been created to further support the structured learning opportunities, enhanced digital learning opportunities and support career growth as part of the employee value proposition.
Remuneration Governance
The governance of remuneration falls under the scope of the Human Resources division and the Human Resources and Remuneration Committee (HRRC), which in turn advises the Board. The Board approves the business targets at the beginning of every financial year and then reviews the results at the end of the year before making a final decision regarding payment of any incentives (if applicable).
Equitable reward and remuneration
SANBS is committed to remaining sustainable, whilst equally important is the equitable reward of our valued employees. Our philosophy is meant to attract, develop, and celebrate the successes of our individual employees within the context of our altruistic mandate of being “Trusted to save lives”.
It is the organisation’s philosophy that no employee is paid below the minimum of the applicable salary scale and is verified through a process conducted by internal auditors annually.
The organisation uses the services of independent remuneration service consultants to review and benchmark remuneration levels of both the NED and staff on a regular basis.
Although SANBS is a not-for-profit organisation and therefore not ordinarily able to afford to remunerate its employees in accordance with the private sector market related salaries and incentive bonuses, the remuneration scales and policies are benchmarked with similar size organisations nationwide. This is in keeping with the recommendations made by the consultants as SANBS competes in the market for several specialist skills. See SANBS’ annual financial statements for disclosure of remuneration paid.
The organisation’s rewards programmes are guided by the following policies which are reviewed annually for relevance by the Human Resources and Remuneration Committee.
The main objective is to ensure that the organisation’s remuneration policies and talent management practices are fair, competitive and in line with best practice.
The organisation’s rewards programmes are guided by the following policies which are reviewed annually for relevance by the Human Resources and Remuneration Committee. The main objective is to ensure that the organisation’s remuneration policies and talent management practices are fair, competitive and in line with best practice.
Policies that manage rewards
Remuneration
Performance Management
Incentive Bonus
Pay Progression
The organisation’s remuneration structure is designed holistically to achieve optimal performance and consists of monetary and non-monetary rewards.
Guaranteed
SANBS employees are remunerated on a Total Cost of Employment (TCE) basis, which is the base pay excluding fringe benefits and the salary increases for management and staff are performance based. The bargaining unit employees of SANBS are negotiated with our labour partners annually. The SANBS board approves all salary increases annually.
Benefits
All employees are eligible for fringe benefits such as retirement funds, healthcare, life cover, dreaded diseases and disability cover. Employees within the bargaining unit also qualify for other benefits such as overtime and call out allowances.
Incentive bonus
SANBS employees are currently eligible for a performance related incentive bonus, which is equivalent to a 13th cheque, if specific approved targets and metrics are achieved in the applicable financial year.
Recognition
Informal recognition and celebration of achievement (Long Service Awards); Formal awards for recognition of extraordinary achievement and service above and beyond the call of duty.
Looking forward
As we reflect and adapt to a new way of work, the SANBS is reviewing it's reward and recognition approach to ensure that it remains competitive in the marketplace. SANBS has also supported our employees in providing additional work tools as we responded to the pandemic by providing appropriate home office furniture for eligble employees.
Non-Executive Director Remuneration
Further to the remuneration of SANBS employees, the Non-Executive Directors (“NEDs”) who comprise the governing body are remunerated for the work they do.
To ensure their fair remuneration commensurate with their responsibilities, SANBS ensure that the requirements of the Companies Act No. 71 of 2008 and King IV Report on Corporate Governance for South Africa, 2016, Principle 14, are aligned with the organisation’s practices in this regard.
To this end SANBS has a Non-Executive Director Remuneration Policy which sets out the key principles related to the fees of NEDs and to provide a framework for the Company to attract and retain qualified and experienced NEDs to drive the Company forward, whilst keeping it under effective control.
The principles that underpin this policy are:
NED fees consist of three components, namely a monthly retainer, meeting fees and special fees. The National Council in accordance with the Memorandum of Incorporation approves the fees of the NEDs.
Accountability and disclosure
In the interest of transparency, below in the table, containing the elements of NED fees, are the amounts paid to each director during the reporting period, with comparative figures for the prior year.
PwC is the independent external consultant that assisted with the NED fee benchmarking. This was undertaken in September 2019.
The peer groups chosen for the benchmarking are a comparator group of JSE listed companies.
First sentence: The number of Board meetings and committee meetings attended by the various NEDS are included in our governance .
Included for ease of reference. Please provide all NED fees paid for period 1 April 2020 to 31 March 2021 to populate table below.
| Name | 31 March 2021 R'000 |
31 March 2020 R'000 |
|---|---|---|
| R Brand | - | 461 |
| F Burn | 503 | 427 |
| S Fakie (Joined 23.11. 2020) | 168 | - |
| W Gumede (Retired 09.07.2020) | 228 | 677 |
| P Knox | 568 | 442 |
| G Leong (Joined 09.11.2019) | 566 | 94 |
| Y Moodley (Retired 30.06.2020) | 92 | 365 |
| P Mthethwa | 529 | 375 |
| A Ramalho | 783 | 510 |
| G Simelane | 559 | 654 |
| R Theunissen | 677 | 714 |
| M Vaithilingum | 408 | - |
| 5081 | 4719 |
