Section 6 - Abstract of JSE Disclosed Information

Overview

The annual reports of listed companies are an invaluable source of information for the remuneration of senior executives, simply because the information is accurate and can be analysed in a consistent way across sectors.

 

In doing so, it is nevertheless important when undertaking this analysis to interpret it correctly, and to exclude data that will distort the results. Rules have had to be developed for this purpose - which are explained in Chapter 6.1.

 

Listed companies are also required to disclose their remuneration policies. They do so in different ways. Extracts are therefore presented in Chapter 6.2 to illustrate the different approaches and the underlying principles. Due to the inconsistent way in which share and long-term incentive scheme policy is disclosed we run an annual survey on long-term incentive scheme policy, which is also appended to this chapter.

 

The overall exposure of directors to share schemes can be measured statistically from the database. This may be relevant in setting 'multiple limits' for share schemes, and is presented in a further appendix to Chapter 6.2.

 

The regressed statistics of disclosed remuneration data is presented in Chapter 6.3. The methodology used is explained in the introductory pages of the chapter. The look-up tables are appended by sector and size category, and sub-divided into the three positions of chief executive officer, chief financial officer and other executive director. The figures appear in statistical deciles to facilitate a ten-point competency-based ranking.

 

Chapter 6.4 then covers the fees of non-executive directors for services as director. Again, the methodology is first explained, and the look-up tables follow.

 

Since the disclosure of fees does not address the time element of the appointments, which may obviously differ substantially from one company to another, we run an annual survey to supplement the information, which appears as an appendix to this chapter.