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Directors’ remuneration

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This report on remuneration and related matters covers issues which are the concern of the board as a whole in addition to those which are dealt with by the remuneration committee.

Remuneration policy

The remuneration committee has a clearly defined mandate from the board aimed at:
  • ensuring that the Group’s chairman, directors and senior executives are fairly rewarded for their individual contribution to the Group’s overall performance; and
  • ensuring that the Group’s remuneration strategies and packages, including the remuneration schemes, are related to performance, are suitably competitive and give due regard to the interests of the shareholders and the financial and commercial health of the Group.

New incentive scheme

A new generation incentive scheme, namely the JD Group Share Appreciation Rights Scheme (the SAR Scheme), was incorporated on 12 August 2009. The SAR Scheme benefits are subject to the achievement of performance conditions that are linked to the Group’s overall strategic goals. The remuneration committee was appointed manager of the SAR Scheme with a mandate to administer the SAR Scheme in terms of the provisions of the scheme rules. A comprehensive review of the SAR Scheme can be found here. The Group’s existing incentive scheme, the JD Group Employee Share Incentive Scheme, is being phased out and no further allocations will be made in terms of this scheme.

Directors’ service contracts

All executive directors’ normal service contracts are subject to 12 calendar months’ notice. Non-executive directors are not bound by service contracts. No director has an employment contract with the Group exceeding three years.

  Basic salary  
R  		 Fees  
for services  
R  
 Allowances*   
R   
 Retirement  
contributions  
R  
     Medical  
contributions  
R  		 Cash package   
R   		   Variable remuneration#        Share  
scheme gains  
R  		 Total   
R   		  
Current   
R   		 Prior   
R   		 Subtotal   
R   		    
2009                                  
Executive directors                                  
ID Sussman   2 888 356      294 180    593 892        20 452    3 796 880      —    480 360    4 277 240      —    4 277 240     
AG Kirk   2 449 930      296 067    393 300        73 800    3 213 097      —    320 240    3 533 337      —    3 533 337     
KR Chauke   943 945      195 540    150 300        26 650    1 316 435      —    96 072    1 412 507      —    1 412 507     
Dr HP Greeff   1 082 555      195 540    172 710        23 462    1 474 267      —    96 072    1 570 339      —    1 570 339     
ID Thompson   1 211 104      188 040    193 500        24 584    1 617 228      —    80 060    1 697 288      —    1 697 288     
G Völkel   1 538 303      195 540    194 374        12 716    1 940 933      —    200 150    2 141 083      670 250    2 811 333     
  10 114 193      1 364 907    1 698 076        181 664    13 358 840      —    1 272 954    14 631 794      670 250    15 302 044     
Non-executive directors                                  
VP Khanyile     120 000              120 000          120 000      —   120 000     
ME King     280 000              280 000          280 000      1 506 000    1 786 000     
Dr D Konar     260 000              260 000          260 000      —   260 000     
IS Levy     280 000              280 000          280 000      —   280 000     
M Lock     240 000              240 000          240 000      —   240 000     
MJ Shaw     280 000              280 000          280 000      —   280 000     
GZ Steffens     300 000              300 000          300 000      —   300 000     
    1 760 000              1 760 000          1 760 000      1 506 000    3 266 000     
2008  
 Executive directors  		                                
ID Sussman   2 777 181      306 330    601 460        18 470    3 703 441      1 330 040    —    5 033 481      —    5 033 481     
AG Kirk   1 903 497      146 573    335 873        54 597    2 440 540      883 760    —    3 324 300      —    3 324 300     
HC Strauss (9 months)   1 683 602      206 555    282 277        13 733    2 186 167      883 760    452 400    3 522 327      —    3 522 327     
KR Chauke   771 308      199 290    130 121        23 906    1 124 625      265 128    113 100    1 502 853      —    1 502 853     
Dr HP Greeff   971 293      192 165    164 439        20 214    1 348 111      265 128    113 100    1 726 339      —    1 726 339     
JHC Kok (9 months)   1 004 207      142 605    187 574        13 631    1 348 017      463 974    237 510    2 049 501      —    2 049 501     
G Völkel   1 414 499      192 165    194 363        11 554    1 812 581      552 350    237 510    2 602 441      —    2 602 441     
  10 525 587      1 385 683    1 896 107        156 105    13 963 482      4 644 140    1 153 620    19 761 242      —    19 761 242     
Non-executive directors                                  
ME King     225 000              225 000          225 000      —    225 000     
Dr D Konar     225 000              225 000          225 000      —    225 000     
IS Levy     225 000              225 000          225 000      —    225 000     
M Lock     80 000              80 000          80 000      —    80 000     
MJ Shaw     160 000              160 000          160 000      —    160 000     
    915 000              915 000          915 000      —   915 000     
* Travel and subsistence allowances
# Variable remuneration is calculated using the headline earnings per share multiplied by the number of units allocated to each individual as determined by the remuneration committee.
Variable remuneration relating to each financial year is payable as follows:
  • 60% of estimated headline earnings per share for the first half year during December.
  • The remainder of the headline earnings per share for the first half year during May.
  • Headline earnings per share for the second half year during November.

Variable remuneration for a financial year will include earnings for the second half of the previous financial year and the first half of the current financial year.  
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