The group operates in a highly competitive market where key skills and technical know-how are critical to the success of the group. We seek to reward employees fairly and in line with the market in similar industries and in this regard the services of a reputable consulting firm are engaged from time to time to ensure an objective salary structure and equity within the group.
The Nominations and Remuneration Committee oversees and makes recommendations to the board on matters such as salary increases and employee benefits in consultation with the Group Chief Executive and the group management.
The group remunerates its executive directors based on reliable benchmarking data and seeks to achieve market-related cost to employer packages that are a combination of basic salaries augmented by incentives provided that the group achieves set returns on assets. As recognition for superior performance, the group also has a range of incentive schemes in place which pay quarterly and annual bonuses, which could place employees’ remuneration packages beyond the norm provided that certain profit and performance hurdles are cleared. These incentive schemes have been structured to reward performance and to align managements’ interest with the interests of shareholders. Although these schemes were placed on hold during the 2009 and 2010 recovery period, these will soon be operative again due to the improved financial position of the group.
In determining the salary increases of executives and the payment of incentives, the Nominations and Remuneration Committee evaluates the performance of each executive against the achievement of predetermined objectives. The performance of the Group Chief Executive is evaluated annually by the independent Chairman of the Nominations and Remuneration Committee in order to determine his salary package for the ensuing year. Likewise, the Group Chief Executive conducts an annual review of the performance of all senior executives. There was no increase in the remuneration of the Group Chief Executive. The remuneration of these executives and other executive directors are detailed in the annual financial statements on page 92.
Share options have been allocated to certain members of middle and senior management in terms of the Bell Share Option Scheme 2 as part of the board’s strategy to retain and incentivise skilled and professional employees deemed to be critical to the future sustainable growth of Bell. Details of share option scheme allocations are contained on pages 80 to 82 of the annual financial statements.