Remuneration implementation report

This implementation report discloses the remuneration outcomes on a named individual basis, for each executive director and identified prescribed officer (CLW Bekker and GE Blomfield with effect from financial year 2017).

Additional tables provide details of all awards made under various remuneration incentive schemes:

  • In schemes that have not yet vested, including the number of LTIP allocations, the values at date of allocation, their allocation and vesting dates, and an estimated fair value at the end of this reporting period
  • The cash value of all awards made under variable remuneration incentive schemes that were settled under the reporting period
  • The performance measures used with their relative weighting, as a result of which variable compensation plan (VCP) incentive awards and LTIP allocations were made, including: the targets set for the performance measures and the corresponding value of the award opportunity; and for each performance measure, how the Group and executive managers individually performed against the set targets

All individuals are subject to the Company’s standard terms and conditions of employment, specifically as they relate to the employment contract and conditions relating to termination.

As a payment was made to the Group Chief Executive Officer as part of a negotiated termination of employment, these amount(s), are disclosed separately, together with an account as to why, in this instance, the committee applied its discretion/judgement to deviate from policy.

A market comparison of executive salaries was conducted during 2017, and the board remuneration and human resources committee approved an additional adjustment of 13% to the Group Chief Financial Officer’s salary to align with salaries of similar roles in the market.

Remuneration outcomes – total remuneration

2016/2017 total remuneration outcomes are provided on a name and role basis for the current and prior financial years, with explanatory footnotes identifying, where appropriate, the above provisions.

Actuals achieved 2016 and 2017 in relation to 2017 pay mix targets:

Remuneration outcomes – single figure

2016/2017 total remuneration outcomes are compared to the 2017 target pay mix and a single figure derivation on a name and role basis for the previous year and the year under review.

Remuneration outcomes – 2016/2017 variable compensation plan (VCP) outcomes in detail

The results of performance against all measures in the corporate and individual scorecards are disclosed below in such a way that the stakeholder can reasonably assess whether the incentive is in line with the performance measures and the policy.

Financial year 2017

1 The variable compensation plan payment for H1-FY 2017 for André Meyer was not measured and was negotiated as part of his mutual separation.

Financial year 2016

Remuneration outcomes – history of recently vested and unvested shares

There are currently unvested shares resulting from two legacy share schemes and from the current share scheme.

  • From the Life Healthcare 2009 long-term incentive plan, individuals were allowed to elect prior to the vesting of their 2011 and 2012 allocations to defer settlement, invest the shares for a further three years and have those shares matched with additional restricted shares.
  • From the Life Healthcare 2013 long-term incentive plan, individuals were allowed to elect at the time of their 2013 and 2014 allocations to defer the vesting of the shares for a further two years (from three to five), and have those shares matched with additional restricted shares.

From the Life Healthcare 2015 long-term incentive plan, performance units were offered in 2015, 2016 and 2017.

Summaries of the current situation for executive directors and prescribed officers are shown below: