This remuneration chapter presents the key components of Afrox’s remuneration philosophy. This philosophy is reviewed annually to clearly articulate our stance on remuneration and employee rewards. Building a competitive, high- performance culture with fair and equitable reward levels that attract, retain, motivate, engage and recognise high-performing employees is a key enabler of the HR strategy, which in turn supports our overall strategic objectives.
The NGMR Committee is responsible for independently overseeing and approving remuneration policies and practices for the Company in order to ensure these are fair, consistent, and reasonable.
The Group strives to remunerate employees competitively within the relevant occupational ranges benchmarked against the national and manufacturing industry standards by the size of the organisation. This aids us in establishing market-related midpoint. Through our annual HR budget reviews, we consider employee performance, compa ratio (the relationship between base salary and the midpoint) and business affordability. This informs the formulation of an appropriate remuneration figure.
Remuneration is structured in a manner that supports our strategy by, attracting, motivating and retaining high-performing employees, by being competitive in the market. We do so by encouraging and rewarding employees to achieve or exceed the objectives and targets of the business as contained in our strategy and aligning the economic interests of employees with those of other stakeholders.
The remuneration system for the executive and non-executive directors is determined based on the amount and structure of the remuneration payable, the size of the company, performance, as well as on customary remuneration practice among peers and the remuneration structure which applies elsewhere in the company. To gauge customary practice among peers, Afrox compares its remuneration system with that of the national and manufacturing sectors.