P-E Corporate Services SA (Pty) Ltd Management Consultants

The Framework of Senior Executive Remuneration

Synopsis:

A two-day course for non-executive directors who have been appointed to a remuneration committee, reviewing market trends in senior executive pay and pay policy in SA and in other leading developed countries.

Presentation:

The presentation will be divided into six sessions as follows:

No.	Topic heading	Subjects to be covered:	Scheduled time
1.	The corporate governance of remuneration	A review of the principles of the King III Code which relate to remuneration and to the functioning of the remuneration committee; towards an appreciation of the main areas of change and of the challenges facing remuneration committees going forward	2.5 hours
2.	Trends in the labour market	Trends in the pay of senior executives and in the fees of non-executive directors of JSE listed companies over the past five years; interpretation of the statistics	1 hour
3.	Remuneration policy	Consideration of the alternative approaches in defining market-positioning strategy and the motivation and retention strategy applying to senior executives; the compilation of the remuneration report (five selected examples will be studied)	2 hours
4.	The guaranteed pay package	Consideration of the alternative methods of benchmarking; the total package approach; competency-based pay positioning principles and practice (including examples)	1.5 hours
5.	The short-term incentive	A review of the principles underlying incentive pay and performance management; different ‘funding’ approaches; performance bonuses and super profit-sharing concepts; defining the expected and stretch targets; using non-financial performance criteria; what ‘corporate performance’ means (examples); the balanced scorecard approach (examples)	3.5 hours
6.	Long-term incentives and contractual restraints	A review of alternative long-term incentive scheme approaches found within the Top 80 JSE companies; how to measure the present value of these, and establish an appropriate balance between the different components of the more broadly-defined package; contractual restraints, performance pre-conditions, severance pay practices, etc.	3.5 hours

Course research:

The market trends in level of pay and directors fees over the past five years have been extracted from our surveys (including from our JSE Abstract of Disclosed Information). Our annual surveys of the remuneration practices of the Top 80 JSE listed companies provide the material for the presentations as far as acknowledged ‘best practices’ are concerned.

Hand-out material:

A hard-copy version of our subscription library publication entitled RemCom, including the replacement page updating service for twelve months; plus miniaturized copies of the slide presentations.

Who should attend:

The course will be presented at the level of non-executive directors appointed to remuneration committees, who are required to make high-level decisions on senior executive pay policy. It will be suitable too for executives advising remuneration committees (including finance and HR executives, and company secretaries).

Programme on each day:

Time:	Scheduled breaks:
8:00 am	Registration and refreshments
8:30 am	Presentation commences
10:30 to 10:45 am	Tea-break
1:00 to 1:45 pm	Lunch-break
3:00 to 3:15 pm	Tea-break
4:30 pm	Adjournment

Costs of attendance:

The attendance fee inclusive of the subscription library hand-out material is R4750 (plus VAT); or R4250 (plus VAT) per attendee if more than is enrolled by a single organization.

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