Telkom Integrated Report 2017

109

Telkom Integrated Report 2017

Section

This report is divided into two sections:

> Section 01 provides an overview of the company’s remuneration principles

and policies for executive and non executive directors, prescribed officers,

and the exco members

> Section 02 discloses actual payments, accruals and awards for the year

ended 31 March 2017

Remuneration philosophy

and policy

To ensure we remunerate

employees competitively,

we use market and industry

benchmarks. The

benchmarking is conducted

to determine appropriate

market positioning

offerings, which are

higher than the minimum

prescribed wages. In

addition,Telkom recognises

“equal pay for work of equal

economic value”, and strives

to remunerate employees

doing the same work or

substantially the same

work, in the same range in

accordance with the Labour

Relations Act.

TheTelkom remuneration strategy is designed to attract, motivate and retain

high-calibre talent in a challenging business environment, and supports the

delivery of our strategy in a sustainable manner without encouraging undue

risks. As the market expands with operators in all spheres of our business and

the new operating model, it is increasingly challenging to retain experienced

executive leadership, and to attract new talent required for the new and

growing areas of our business. Meeting this challenge requires having a

competitive and attractive remuneration offering.

We embarked on a turnaround strategy where the current focus is on creating

a platform for growth.

To ensure we remunerate employees competitively, we use market and

industry benchmarks. Industry and market-related benchmarking is

conducted to determine appropriate market positioning offerings which are

higher than the minimum prescribed wages. In addition,Telkom recognises

“equal pay for work of equal economic value”, and strives to remunerate

employees doing the same work or substantially the same work, within the

same range in accordance with the Labour Relations Act. However,Telkom

recognises that there could be differences which are attributed to

the following:

individuals’ respective seniority or length of service

individuals’ respective qualifications, ability, competence or potential above

required levels of performance for the job

individuals’ performance – all employees are equally subject toTelkom’s

performance management system

demotion of individual due to restructuring without a concomitant reduction

in remuneration

individual’s lack of relevant skill for a particular job level

any other differentiator provided that it is not discriminatory