Our remuneration philosophy for executive management, non-executive directors and other employees is benchmarked against manufacturing industry standards and we strive to remunerate our employees competitively within the relevant occupational ranges. External consultants aid us in establishing market-related salary benchmarks. Through annual HR budget reviews, we consider both employee performance and business affordability to reach an appropriate remuneration figure.
The philosophy is balanced and recognises differences in individual performance, value and contribution to the organisation through a framework that is consistent to ensure equitable pay levels and defensible remuneration decisions. A rigorous objective-setting process at all levels to ensure shareholder expectations are met and/or exceeded.
Remuneration and our strategy
Remuneration is structured in a manner that supports our strategy by:
- attracting, motivating and retaining high-performing employees, by being competitive in the market;
- encouraging and rewarding employees to achieve or exceed the objectives and targets of the business as contained in the business strategy; and
- aligning the economic interests of employees with those of other stakeholders.
Afrox considers the 50th percentile of a selection of peer companies (primarily from the manufacturing sector) for base pay setting. This is supported by a bouquet of relevant employee benefits. Where applicable, such as in attracting people with relevant skills, the Company will remunerate above this benchmark.
Responsibility for governing remuneration and developing relevant policy
Final responsibility for the remuneration policy rests with the Board who in turn appoints the NGMR Committee to aid it is fulfilling its duties. The NGMR Committee is primarily responsible for providing input into and approving the reward strategy when remuneration is concerned.
The Linde Group also provides significant input into the establishment of Afrox’s remuneration practices and a number of advisors are used to assist in tracking market trends where relevant.
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