{"id":4804,"date":"2024-06-13T19:17:49","date_gmt":"2024-06-13T17:17:49","guid":{"rendered":"https:\/\/famousbrands.co.za\/iar2024\/?page_id=4804"},"modified":"2024-06-20T11:52:41","modified_gmt":"2024-06-20T09:52:41","slug":"remuneration-committee-report","status":"publish","type":"page","link":"https:\/\/famousbrands.co.za\/iar2024\/rewarding-value-creation\/remuneration-committee-report\/","title":{"rendered":"Remuneration Committee report"},"content":{"rendered":"<h2 class=\"nb-heading\">Chris Boulle<\/h2>\n<p>CHAIRMAN<\/p>\n<p><img decoding=\"async\" class=\"nb\" src=\"https:\/\/famousbrands.co.za\/iar2024\/images\/p160-f.jpg\" alt=\"Chris Boulle\"><\/p>\n<p><!--\n\n<div class=\"tcontainer box-yellow bs\">\n\t\n\n<h4>Mandate<\/h4>\n\n\n\t\n\n<p class=\"blurb text-anim\" style=\"width: 100%; position: initial; top: 0px;\">The purpose of the Remuneration\n\t\tCommittee is to assist the Board\u00a0in discharging its oversight responsibilities relating to all compensation\n\t\tmatters, including reviewing all components of remuneration, proposing measures for the STI and LTI schemes,\n\t\timplementing all relevant employee compensation policies, ensuring alignment with market best practices and\n\t\tcompliance\u00a0with King IV.<\/p>\n\n\n<\/div>\n\n\n\n\n\n<div class=\"row\">\n\t\n\n<div class=\"col-md-6\">\n\t\t<img decoding=\"async\" src=\"https:\/\/famousbrands.co.za\/iar2024\/images\/p160.png\" alt=\"\">\n\t<\/div>\n\n\n\t\n\n<div class=\"col-md-6\">\n\t\t<img decoding=\"async\" src=\"https:\/\/famousbrands.co.za\/iar2024\/images\/p146-2.png\" alt=\"\">\n\t<\/div>\n\n\n\t\n\n<div class=\"clearfix\"><\/div>\n\n\n<\/div>\n\n--><\/p>\n<h2>Attendance and composition<\/h2>\n<table>\n<tr class=\"border-b-orange\">\n<td width=\"33%\">\n<h5><em>Members<\/em><\/h5>\n<\/td>\n<td width=\"33%\">\n<h5><em>Invitees<\/em><\/h5>\n<\/td>\n<td width=\"33%\">\n<h5><em>Relevant skills profile of\u00a0members <\/em><\/h5>\n<\/td>\n<\/tr>\n<tr class=\"border-b-orange\">\n<td>\n\t\t\t<strong>Chairman <\/strong><\/p>\n<ul>\n<li>CH Boulle (3\/3)<\/li>\n<\/ul>\n<p>\t\t\t<strong>Members<\/strong><\/p>\n<ul>\n<li>SL Botha (3\/3)<\/li>\n<li>F Petersen-Cook (3\/3)<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li>CEO<\/li>\n<li>Group HR Executive<\/li>\n<li>Company Secretary<\/li>\n<li>Group Financial Director<\/li>\n<\/ul>\n<\/td>\n<td>\n<p>Committee members are highly skilled in\u00a0business and strategy, legal, risk and governance, marketing, and<br \/>\n\t\t\t\tfinance. The\u00a0Committee\u2019s Chairman has sat on remuneration committees for over 20 years and has assisted<br \/>\n\t\t\t\tvarious listed and non-listed entities in implementing incentive structures in his capacity as a<br \/>\n\t\t\t\tcorporate attorney. <\/p>\n<\/td>\n<\/tr>\n<\/table>\n<h3>Focus areas for 2024<\/h3>\n<h5 class=\"purplebg-heading\">General <\/h5>\n<hr class=\"orange-line\">\n<ul>\n<li>Reviewed and approved the Committee Charter and annual Committee work plan.<\/li>\n<li> Reviewed and approved remuneration-related disclosures in the IAR and AFS, and the remuneration report for<br \/>\n\t\tpresentation at the AGM for purposes of passing non-binding advisory votes.<\/li>\n<li> Noted the movements in Famous Brands B-BBEE scorecard related to employment equity. <\/li>\n<li> Reviewed reports based on benchmarking studies to review Exco members\u2019 remuneration relative to the market<br \/>\n\t\t(<a href=\"https:\/\/famousbrands.co.za\/iar2024\/rewarding-value-creation\/remuneration-policy\/#Incentive_Performance\" class=\"link\">read more<\/a>). <\/li>\n<li> Engaged with shareholders around their views on Famous Brands\u2019 remuneration decisions. <\/li>\n<\/ul>\n<h5 class=\"purplebg-heading\">Remuneration amendments<\/h5>\n<hr class=\"orange-line\">\n<p>In a closed session with the auditors, the Committee reviewed and considered the following assessments:<\/p>\n<ul>\n<li>Approved increases of 6% for administration employees and payment of their annual bonuses.<\/li>\n<li>Noted the two-year wage agreement for BU employees with a 6.5% increase for 2023 and 7% for 2024. They also<br \/>\n\t\treceived an increase of 5% in long service awards and a 7% increase in allowances. The employer provident fund<br \/>\n\t\tcontribution increased by 1.25%. <\/li>\n<li>Approved increases and bonuses for Exco members and the Executive long-term incentive (LTI) allocations in<br \/>\n\t\tline\u00a0with the new scheme rules i.e.\u00a0SARs\/retention performance share awards and restricted shares. <\/li>\n<li>Considered and approved the deferred decision on executive directors\u2019 short-term incentive (STI)\/LTI and total<br \/>\n\t\tcompany cost (TCC) increases. <\/li>\n<li>Approved the vesting of LTI shares on 1 November 2023 and the purchase of shares by the Famous Brands Share Incentive Scheme to settle the number of shares due to participants.<\/li>\n<\/ul>\n<h5 class=\"purplebg-heading\">Long-Term Share Plan <\/h5>\n<hr class=\"orange-line\">\n<ul>\n<li>Approved the implementation policy for the Long-Term Share Plan. <\/li>\n<li>Engaged with shareholders on the implementation of the Long-Term Share Plan.<\/li>\n<li>Oversaw communications to relevant employees on the implications of the Long-Term Share Plan on future rewards.  <\/li>\n<\/ul>\n<h5 class=\"purplebg-heading\">Non-executive directors\u2019 fees<\/h5>\n<hr class=\"orange-line\">\n<ul>\n<li>Recommended a 6% increase in non-executive director fees for approval by shareholders at the AGM.<\/li>\n<\/ul>\n<h5 class=\"purplebg-heading\">Executive performance and pay<\/h5>\n<hr class=\"orange-line\">\n<ul>\n<li>Reviewed the performance of the CEO and Group Financial Director for 2023 and set their scorecards for 2024.\n\t<\/li>\n<li>In consultation with Exco members, approved the 2024 scorecard. The Exco members\u2019 scorecard applies similar<br \/>\n\t\tprinciples to the CEO\u00a0scorecard, with a focus on fiscal discipline and alignment with the three-year strategic<br \/>\n\t\tobjectives. <\/li>\n<\/ul>\n<h5 class=\"purplebg-heading\">Succession and executive development<\/h5>\n<hr class=\"orange-line\">\n<ul>\n<li>Reviewed the CEO, Group Financial Director and Group HR Executive succession plans.<\/li>\n<li>Noted management\u2019s proposed succession plan for executive and senior management roles.<\/li>\n<li>Considered the appointment of a Group Executive: Supply Chain.<\/li>\n<li>Oversaw the Leadership Development Programme, to develop internal candidates for the CEO role. <\/li>\n<\/ul>\n<h2>Shareholders engagement<\/h2>\n<p>At a General Meeting held on 23 May 2023, 80.54% of\u00a0the shareholder votes were in favour of adopting the\u00a0Long-Term<br \/>\n\tShare Plan. This plan, which offers a simplified, easy-to-understand remuneration structure, came into effect from<br \/>\n\tthe 2024 financial year. Read more about the <a href=\"https:\/\/famousbrands.co.za\/iar2024\/rewarding-value-creation\/remuneration-policy\/#Long-term_incentives\" class=\"link\">Long-Term Share Plan<\/a>. <\/p>\n<p>The 2023 AGM was held on Thursday 20 July 2023. Prior to the AGM, various shareholders were invited to engage with the Chairman of the Remuneration Committee and the Company Secretary on matters relating to the resolutions set out in the Notice of AGM, and especially the Remuneration Report including the Remuneration Policy and Implementation Report. We also discussed implementation of the Long-Term Share Plan.<\/p>\n<p>In general, shareholders were supportive of the performance metrics for STI and the Long-Term Share Plan. The<br \/>\n\tinclusion of HEPS and ROCE as Long-Term Share Plan metrics was welcomed by shareholders. However, shareholders<br \/>\n\trequested free cash flow to be added as a metric and sought additional disclosure for the peer group for total<br \/>\n\tshareholder return (TSR). Our response to shareholder concerns can be found in the <a href=\"https:\/\/famousbrands.co.za\/iar2024\/rewarding-value-creation\/background-statement\/\" class=\"link\">background statement<\/a>. <\/p>\n<p>At the AGM, the non-binding advisory resolutions on the\u00a0Remuneration Policy and Implementation report received a high<br \/>\n\tlevel of support from our shareholders, with 87.20% and 89.08% of shareholder votes, respectively. This is a marked<br \/>\n\timprovement on the votes received at our 2022 AGM and is a testament to our successful engagement with shareholders<br \/>\n\tin 2023 and\u00a02024 in response to their concerns. <\/p>\n<h2>Priorities for\u00a02025<\/h2>\n<p>We are committed to ensuring appropriate, fair and responsible remuneration across the Group. Our focus areas for<br \/>\n\t2025 include:<\/p>\n<ul>\n<li>Ensuring management is appropriately incentivised in\u00a0a\u00a0challenging operating environment.<\/li>\n<li>Engaging shareholders on our approach to remuneration and key remuneration decisions.<\/li>\n<li>Overseeing our Leadership Development Programme to develop successors for the CEO role.<\/li>\n<li>Internal succession planning and leadership development in a market where skills are increasingly\u00a0scarce.<\/li>\n<\/ul>\n<p>I confirm that the Committee is satisfied that it has fulfilled its responsibilities according to its terms of reference<br \/>\nfor the financial year. I will be present at the\u00a0AGM to answer any questions regarding the Committee\u2019s activities.\n<\/p>\n<p>\n\t<span class=\"board-name\">Chris Boulle<\/span><br \/>\n\t<em>Chairman: Remuneration Committee<\/em>\n<\/p>\n<p>21June 2024<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chris Boulle CHAIRMAN Attendance and composition Members Invitees Relevant skills profile of\u00a0members Chairman CH Boulle (3\/3) Members SL Botha (3\/3) F Petersen-Cook (3\/3) CEO Group HR Executive Company Secretary Group Financial Director Committee members are highly skilled in\u00a0business and strategy, legal, risk and governance, marketing, and finance. The\u00a0Committee\u2019s Chairman has sat on remuneration committees for&#8230;  <a href=\"https:\/\/famousbrands.co.za\/iar2024\/rewarding-value-creation\/remuneration-committee-report\/\" class=\"more-link\" title=\"Read Remuneration Committee report\">Read more &raquo;<\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"parent":4879,"menu_order":4,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Remuneration Committee report - Famous Brands IAR 2024<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/famousbrands.co.za\/iar2024\/rewarding-value-creation\/remuneration-committee-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Remuneration Committee report - Famous Brands IAR 2024\" \/>\n<meta property=\"og:description\" content=\"Chris Boulle CHAIRMAN Attendance and composition Members Invitees Relevant skills profile of\u00a0members Chairman CH Boulle (3\/3) Members SL Botha (3\/3) F Petersen-Cook (3\/3) CEO Group HR Executive Company Secretary Group Financial Director Committee members are highly skilled in\u00a0business and strategy, legal, risk and governance, marketing, and finance. 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