Governance, risk and compliance, and remuneration reports
Clover’s Remuneration Policy
Clover’s Remuneration Policy is aimed at attracting and retaining skills that will support the generation of returns on investment for shareholders in a manner that preserves Clover’s ongoing sustainability. In line with international best practice, this remuneration policy establishes remuneration practices that are fair, reasonable and market-related, by combining short-term remuneration with longer-term incentives. It is designed to align the long-term interests of the executive and senior management (who have the most significant influence on sustained growth) with the interests of shareholders.
Clover’s Remuneration Policy is based on the following key principles:
- Remuneration should support Clover’s strategies and be consistent with the organisation’s culture of fairness and equity.
- Remuneration should take into account Clover’s size, the complexity of the business and the competitive environment.
- By attracting and retaining appropriate talent remuneration should support Clover’s vision to be the most admired branded consumer goods company in South Africa and other emerging markets.
- Remuneration should directly correlate with Clover’s growth objectives, financial performance targets and actual achievements.
- Remuneration should be reviewed and benchmarked regularly through independent service providers to ensure that Clover remains competitive in its diverse markets. Percentiles should not be rigidly applied, but must take into account industry type, skills scarcity, performance, and legislative structures and requirements.
- Remuneration should motivate and allow for differentiation (i.e. reward high performers).
- Individual contributions, based on role and responsibilities, should have a direct bearing on levels of remuneration.
Clover’s Remuneration Committee is a subcommittee of the Board and oversees the approach to and governance of remuneration matters. It also determines the remuneration of Executive Directors, other executives as well as recommending the remuneration of Non-Executive Directors. These are ultimately approved by shareholders. Details on Remuneration Committee members, meetings and attendance are set out in the Directorate and Management section of this Integrated Report, here. The Remuneration Committee actively engages with independent advisors and stakeholders, to ensure that the remuneration policy and practices are aligned to best practice and achieve Clover’s objectives. The Executive Committee determines and approves the remuneration structures for all non-executive employees in line with the existing remuneration mix set out below.