Corporate Governance

Remuneration Policy

The Board of Directors of Clover Industries Limited acknowledges the need for a board charter as recommended in the Code of Governance Principles for South Africa (“King III”). This Charter is subject to the provisions of the Companies Act no 71 of 2008.

Clover’s Group Remuneration Policy is aimed at attracting and retaining key, specialist skills in order to assist in generating a return on investment for shareholders that is sustainable in the long term.

In line with international best practice, the Remuneration Policy strives to attain its objective by establishing remuneration practices that are fair, reasonable and market related by combining short-term remuneration with longer-term incentives. The long-term interests of those who potentially administer the most significant influence on sustained growth, the executive and senior management, are aligned with the interests of shareholders.

Clover’s Remuneration Policy is based on the following key principles:

  • remuneration should support the Group’s strategies and be consistent with the organisation’s culture of fairness and equity;
  • remuneration should take into account the size of the Group, the complexity of the business and the competitive environment;
  • remuneration should support the Group’s vision to be the most admired branded consumer goods company in South Africa and other emerging markets by attracting and retaining the appropriate talent;
  • remuneration should directly correlate with the growth objectives, financial performance targets and actual achievements of the business of the Group;
  • remuneration should be reviewed and benchmarked regularly through independent external professional service providers to ensure that the Group remains competitive in the diverse markets in which it operates, not applying percentiles rigidly but taking into account industry type, skills scarcity, performance, and legislative structures and requirements;
  • remuneration should motivate and allow for differentiation (i.e. reward high performers); and
  • individual contribution based on role and responsibilities should have a direct bearing on the levels of remuneration.