The Board of Directors of Clover Industries Limited acknowledges the need for a board charter as recommended in the Code of Governance Principles for South Africa (“King VI”). This Charter is subject to the provisions of the Companies Act no 71 of 2008.
REMUNERATION PHILOSOPHYClover’s Remuneration Policy is aimed at attracting and retaining skills that will support the generation of returns on investment for shareholders in a manner that preserves Clover’s ongoing sustainability. In line with international best practice, this remuneration policy establishes remuneration practices that are fair, reasonable and market-related, by combining short-term remuneration with longer-term incentives. It is designed to align the long-term interests of the executive and senior management (who have the most significant influence on sustained growth) with the interests of shareholders.
Clover’s Remuneration Policy is based on the following key principles:
- Remuneration should support Clover’s strategies and be consistent with the organisation’s culture of fairness and equity.
- Remuneration should take into account Clover’s size, the complexity of the business and the competitive environment.
- By attracting and retaining appropriate talent remuneration should support Clover’s vision to be the most admired branded consumer goods company in South Africa and other emerging markets.
- Remuneration should directly correlate with Clover’s growth objectives, financial performance targets and actual achievements.
- Remuneration should be reviewed and benchmarked regularly through independent service providers to ensure that Clover remains competitive in its diverse markets. Percentiles should not be rigidly applied, but must take into account industry type, skills scarcity, performance, and legislative structures and requirements.
- Remuneration should motivate and allow for differentiation (i.e. reward high performers).
- Individual contributions, based on role and responsibilities, should have a direct bearing on levels of remuneration.