Remuneration report

In recognising that Implats strives to be the employer of choice, the company's compensation policy is determined by the Remuneration Committee and as such strives for competitive and fair reward in recognising individual and team achievement. This policy supports the premise that our success is founded on distinctive people, teamwork and inspirational leadership.

Remuneration policy

Guided by the Remuneration Committee of the board, the remuneration policy is aligned with business requirements and labour market dynamics to enable the attraction, retention and motivation of top performers. This policy aims to match the market for the broad talent pool and to lead in areas of critical jobs, talented individuals, important employment equity candidates and/or exceptional performers.

Implats' value proposition comprises a combination of guaranteed and variable performance-enhancing incentives and fair and equitable benefits aimed at attracting, retaining, developing, motivating and rewarding our people. Incentives are related to the performance of individuals, teams, the organisation as a whole and the share price.

During FY2009, the committee reviewed middle and senior management reward in support of a new group management structure and long term incentives ensuring the retention of employees. Several retention mechanisms have been implemented to retain specifically critical and scarce supervisory and technically skilled employees. Regular national, area and sector specific benchmark audits ensure market competitiveness and internal equity.

There has been a renewed focus on performance management, succession planning and accelerated development as talent management tools to minimise risks related to employee turnover in key positions.

In line with the cash preservation strategy that was announced by Implats in November 2008, there will be no salary increases for the D and E level employees in FY2010.

Non-executive directors' remuneration

In terms of the Articles of Association, the fees for services as a director are determined by shareholders in a general meeting. The fees to 30 June 2009 were approved at the annual general meeting on 23 October 2008. Fees for the services of a director of the board are R275 000 per annum and R1.5 million for the chairman of the board. Fees for the services of directors on board committees are R90 000 per annum and R200 000 for the chairman except for the Audit Committee where these fees are R130 000 and R275 000 respectively. Directors' fees in aggregate for serving on board committees for the year under review were as follows:

Non-executive directors' remuneration - for the year ended 30 June 2009 (R000)
Name Board Audit Committee Nominations Committee Remuneration Committee SHEQ Committee Transformation Committee Total 2009 Total 2008
FJP Roux1 500     1 5001 200
F Jakoet275130    405222
JM McMahon27546 90182 593440
MV Mennell27513090   495375
TV Mokgatlha69    2291377
Royal Bafokeng Management Services#206    68274-
K Mokhele275 182 108200765515
NDB Orleyn275 33182 90580440
DS Phiri275  90  365251
LC van Vught275251 33  559420
Total3 7005573053952903805 6274 240

# Mr TV Mokgatlha's fees are paid directly to the Royal Bafokeng Management Services, effective October 2008 and going forward.

Directors' fees are reviewed annually. It is proposed that directors' fees be increased as follows:

 MemberChairmanMemberChairman
With effect from1 July 20091 July 2008
Board288 7501 575 000*275 0001 500 000*
Audit Committee136 500288 750130 000275 000
Safety, Health and Environment    
Quality Audit Committee94 500210 00090 000200 000
Nominations Committee94 500210 00090 000200 000
Remuneration Committee94 500210 00090 000200 000
Transformation Committee94 500210 00090 000200 000

* Includes attendance at all committee meetings

These fees have been waived by the executive directors.

Executive directors' remuneration

Executive directors' remuneration comprises the following:

  • Basic remuneration package, which reflects the cash portion of the executive's remuneration, is aligned with the market to ensure external equity. The individuals' salary is reviewed annually based on their own performance, experience, responsibility, contribution, company performance and market competitiveness.
  • Employee benefits, such as medical, retirement funding and group life contributions by the company are applicable to all employees.
  • Annual performance bonus is determined by the performance of the individual and the company against a set of predetermined targets. The weighting of the respective contribution of company and individual targets is 50% company and 50% individual for production employees with a lesser individual percentage allocated to servicing employees. The bonus is capped at certain percentages based on the level of the executive. Senior management participates in the bonus scheme, which is based on individual achievement of balanced scorecard criteria, as set by the executive team and reviewed by the Remuneration Committee. The bonus is not guaranteed and the apportionment is based on the performance of group companies against set criteria and includes value-added elements (volumes and costs), safety improvements and transformation.
  • Impala Share Appreciation Rights Scheme: is a share scheme issuing notional shares to all executives, based on various salary multiples depending on the executive's grade. The plan pays out in the form of a cash bonus, linked to the increase in the Implats share price on the JSE. All employees from Paterson D to F levels participate in this scheme.
  • Impala Share Option Scheme is a share option scheme that was discontinued in 2004 and replaced with the Impala Share Appreciation Rights Scheme.
  • Impala Preferred Compensation Scheme. Through the Impala Preferred Compensation Scheme the company contributes 20% of the employee's basic remuneration package to an endowment policy on behalf of the employee. The individual may request the benefit payment from the policy after the terms of the service agreement between the company and the individual has been met. This benefit accrues to the employee after 36 months and every 24 months thereafter, provided the employee is still in service. All employees from Paterson D to F levels participate in this scheme.
Executive directors' remuneration - for the year ended 30 June 2009 (R000)
Fixed remunerationPackageRetirement
funds
Other
benefits
Total
2009
Total
2008
Executive directors
DH Brown5 2015461 3577 1045 941
S Bessit2 3913801392 9102 214
D Earp2 9843135193 8163 009
LJ Paton2 5724096923 6732 904
Senior executives12 5861 5651 13015 28113 042
Secretary
A Parboosing7527973904494
R Mahadevey----672
Executive directors' remuneration - for the year ended 30 June 2009 (R000)
Variable
remuneration
Leave
encash-
ment
Bonus #Preferred
compen-
sation
(accrued)
Gains on
share
options
exercised
Total
2009
Total
2008
Executive directors
DH Brown2233 4601 0873 8018 57110 755
S Bessit-6924675 3836 5423 183
D Earp-1 029597-1 626625
LJ Paton-885514-1 3995 204
Senior executives-3 9002 4694 33710 70630 915
Secretary
A Parboosing-136*227-363-
R Mahadevey-----5 164

* Pro-rata for seven months.
# Refers to bonuses for the period July 2007 to June 2008.

In the event of corporate action giving rise to a loss of office, demotion or the blighting of the career (in the opinion of the Remuneration Committee) of an executive director, that executive director is entitled to a severance package of 24 months salary.

Directors' share options

No share options were granted to non-executive directors. Details of share options and share appreciation bonus notional shares outstanding and exercised by the executive directors, group secretary and senior management are as follows:


Executive directors' remuneration - for the year ended 30 June 2009 (R000)
  AdditionsDisposals 
Name Balance
at 1 July
2008
Allocated during the year Date of allocation Forfeited No. of shares sold Date sold Balance as at 30 June 2009 No of sharesAllocation price (R) First release date
Directors          
D H BrownShare options         
  896   8962 Apr 09 -64.4827 Aug 05
 Share appreciation scheme         
  232 81547 37418 Nov 08 19 3684 Apr 09 19 36856.5215 Sep 06
  6641 May 09 11 3441 Jun 09 11 34456.8713 May 07
     9841 Jun 09 1 984103.241 Dec 07
        19 192149.4211 May 08
        65 130160.141 Sep 08
        42 819233.7424 May 09
        6 227242.1927 Nov 09
        35 055333.9030 May 10
        47 374116.7618 Nov 10
        664162.881 May 11
       249 157   
 233 71148 038  32 592 249 157   
           
S BessitShare options         
  3 080     3 0803 08073.3816 Feb 06
 Share appreciation scheme          
 96 26718 30918 Nov 08 12 82420 May 08 25 67256.8713 May 07
  1 3821 May 09 7 29620 May 08 21 904149.4211 May 08
        10 383233.7424 May 09
        18 188333.9030 May 10
        18 309116.7618 Nov 10
        1 382162.881 May 11
       95 838   
           
 99 34719 691  20 120 98 918   
           
D EarpShare appreciation scheme         
 77 26216 36218 Nov 08    72 858205.881 Mar 09
  23 0141 May 09    4 404333.9030 May 10
        16 362116.7618 Nov 10
        23 014162.881 May 11
       116 638   
 77 26239 376  - 116 638   
           
LJ PatonShare options         
 10 384         
        2 40847.635 May 05
        29664.4827 Aug 05
        7 68067.4318 Sep 05
       10 384   
 Share appreciation scheme         
 95 39113 47518 Nov 08    26 36850.8415 Sep 06
  31 4561 May 09    17 89656.8713 May 07
        7 320103.241 Dec 07
        12 744149.4211 May 08
        9 343167.1927 Nov 08
        8 222233.7424 May 09
        13 498242.1920 Nov 09
        13 475116.7618 Nov 10
        31 456162.881 May 11
       140 322   
 105 77544 931  - 150 706   
            
Secretary          
A ParboosingShare appreciation scheme         
 8 1432 02518 Nov 08    7 432242.191 Nov 09
  6 0491 May 09    711333.9030 May 10
        2 025116.7618 Nov 10
        6 049162.881 May 11
       16 217   
 8 1438 074  - 16 217   
          
Senior management         
 Share options         
 131 212   17 912Various 4 24063.3818 Feb 04
        2 48869.506 Jun 04
        1 52860.5116 Aug 04
        1 37673.7525 Nov 04
        76074.2821 Jan 05
        1 04047.635 May 05
        2 35264.4827 Aug 05
        2 25673.3816 Feb 06
        24 20863.3922 Apr 08
        32 62053.7925 June 06
        38 00063.1622 Sep 06
        2 43267.0522 Sep 06
       113 300   
 Share appreciation scheme         
 317 53490 23818 Nov 08       
  76 9541 May 09 22 544Various 94 83256.8713 May 07
        5 344103.241 Dec 07
        70 168149.4211 May 08
        54 324167.1927 Nov 08
        31 078233.7424 May 09
        13 708223.221 Aug 09
        12 052242.1920 Nov 09
        13 484333.9030 May 10
        90 238116.7618 Nov 10
        76 954162.881 May 11
       462 182   
 448 746167 192  40 456 575 482   
           


The gains received on shares sold through the share option scheme are as follows:

  Number of sharesAllocation
price
Gains
on share
options
exercised
Market
price
Name Purchased Sold Total (R) (R000) (R)
Executive directors      
DH Brown896 89664.48  
  19 36819 36856.522 169168.50
  11 34411 34456.871 544193.00
  984984103.2488193.00
 89631 69632 592 3 801 
S Bessit      
  12 82412 82456.873 862358.00
  7 2967 296149.421 521358.00
 -20 12020 120 5 383 
Senior management      
  40040047.6360197.03
  1 7041 70473.38211197.03
  5 2965 29663.39708197.03
 200 20063.38  
 8 376 8 37660.51  
 1 936 1 93674.28  
  8 0328 03256.871 142198.99
  6 7686 76856.87969200.00
  7 7447 74456.871 247217.95
 10 51229 94440 456 4 337 
Implats Annual Report 2009