76 / 203
75
The PPS Group is committed to a remuneration philosophy
that is applied consistently across the PPS Group and
focuses on rewarding consistent and sustainable individual,
team and corporate performance. PPS complies with the
‘Equal Pay for Work of Equal Value’ concept, as defined in
the amended Employment Equity Act. The Remuneration
Policy underpins the reward strategy and is key to the
PPS Employee Value Proposition. Taking due cognisance
of the market and the highly developed and competitive
Financial Services Sector, where a multitude of skills are
critical and scarce, REMCO is responsible for developing
a remuneration philosophy and remuneration policies
and practices that aim to set appropriate remuneration
levels which enable PPS to attract, engage, motivate,
reward and retain executives, senior managers, key
talent and other competent staff with the appropriate
values. The Remuneration Policy forms an integral part of
PPS’s corporate strategy and risk profile and maintains a
sustainable balance between short-term and long-term
value creation, building on the PPS Group’s long-term
responsibility towards its stakeholders, being members,
employees, society and other stakeholders.
The detailed responsibilities of REMCO are set out in its
Terms of Reference as approved by the PPS Insurance
Board from time to time, and include ensuring that the
Remuneration Policy:
• Is aligned to the PPS Group’s strategy, values and
goals and the interests of members, staff and other
stakeholders
• Retains key skills to promote short-term performance
objectives and long-term value creation
• Is consistent with the PPS Group’s risk appetite and
does not induce excessive or inappropriate risk-taking
• Is consistent with and promotes sound and effective
risk management
• Achieves the most effective returns for total employee
expenditure
• Addresses diverse employee needs within and across
different business units
• Appropriately balances the interests of members,
operational and strategic requirements and provides
attractive and appropriate remuneration packages for
executive directors, executives, senior management
and employees.
REMCO’s duties also include:
• Ensuring that the mandates of remuneration committees,
remuneration policies and practices of subsidiaries of the
PPS Group are aligned to the PPS Group remuneration
philosophy
• The approval of the average annual percentage increases
to guaranteed packages of staff
• The approval of all short-term and long-term incentive
scheme designs, as well as any amendments thereto
• The approval of recommended payments and allocations
to be made in terms of any short-term and long-term
incentive scheme
• Ensuring that the Remuneration Policy is appropriate,
considering the desired culture, size of the PPS Group,
its organisational structure and the complexity of its
activities
• Ensuring that the Remuneration Policy forms part of
the PPS Enterprise Risk Management Framework and
component policies
• The determination of the remuneration of the
non-executive trustees and directors of PPS Holdings
Trust and its subsidiaries and related entities for
recommendation to the respective PPS Group boards
for approval, and ultimate approval by the respective
entities’ members by special resolution at their respective
annual general meetings, in advance of making payment
of such remuneration to the board members.
Non-executive directors/trustees are remunerated on the
basis of annual retainers, as well as attendance fees for each
meeting attended. The value of the annual retainers and
the attendance fees are benchmarked against fees paid
in the insurance industry by companies of a similar size to
PPS. Non-executive directors/trustees do not participate
in the PPS Group’s long-term or short-term incentive
schemes. The trustees’ fees for the PPS Holdings Trust
Board and its committees are subject to the ultimate
approval by the Ordinary Members of PPS Holdings Trust
at its annual general meeting.
No employee included in the scope of this policy is
involved in deciding his or her own remuneration. The
Chief Executive and the Group Executive: Human Resources
attend the meetings of REMCO by invitation. The Chief
Executive and Group Executive: Human Resources are
recused from any discussion and/or decision pertaining
to their own remuneration.
The need for continued focus on driving new initiatives
and long-term key performance indicators in line with the
vision, strategy, and key financial and risk parameters of the
organisation, as well as the war for talent in the industry,
resulted in REMCO approving the implementation of a
Key Employee Retention Scheme in 2017. Participation in
the Retention Scheme is limited to key employees in the
PPS Group and employees in critical roles, to incentivise
the retention of those employees, as well as to reward
long-term sustained performance aligned with member