ECIC AR 2024 9TH

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

E Integrated Report 2024 Remuneration Report On behalf of the Board and as Chair of the Human Resources and Remuneration Committee, I am pleased to present the Remuneration Report for the year ended 31 March 2024. It is structured in accordance with the requirements of King IV and is divided into the following three sections: • Section 1 – A background statement regarding committee considerations and decisions for the financial year; • Section 2 – An overview of the Corporation’s remuneration philosophy and policy applicable to the coming year; and • Section 3 – The implementation report which deals with how we have implemented the remuneration policy during the past year. Part 1: Background Statement The financial year ending March 2024 continued to be a challenging year for the Corporation resulting in the Corporation not achieving some of its targets. In discharging its responsibilities set out in the Committee’s terms of reference, the following were key focus areas for the year under review: • Regrettably, the Corporation’s CEO passed away during the period under review. The Committee led the process for the appointment of the new Chief Executive Officer; • Considered the Chief Executive and Divisional Executives performance contracts as a function of setting their remuneration; • Reviewed the Corporation’s human capital and remuneration policies and practices to ensure that they remain fit for purpose and are aligned with strategic objectives; • Considered and recommended adjusted salary increases for approval by the Board; • Reviewed and approved the Corporation’s Succession Planning; • Considered and recommended the Remuneration Report for approval by the Board; and • Considered progress made on the implementation of the Employment Equity Plan. X P O R T C R E D I T I N S U R A N C E C O R P O R A T I O N O F S O U T H A F R I C A S O C L T D

Business Performance and the Impact on Remuneration The Corporation continued to face headwinds during the review period. This resulted in the Corporation not achieving all its targets. During the 2024FY, the Corporation had 17 targets to be achieved in terms of the Corporate Scorecard (Board added 2 additional targets for irregular expenditure and collection of salvages which are not included in the Corporate Plan). The Corporation achieved 10 of the 17 targets resulting in a weighted corporate performance score of 2.84 out of 5.00 compared to a score of 3.27 over the period that ended 31 March 2023. The extent to which the set targets were achieved has a direct impact on the short-term incentives payable to employees. The Corporation did not achieve its performance targets and consequently did not pay out incentives in 2024. Remuneration Governance The Human Resources and Remuneration Committee supports the Board to enable alignment of the Corporation’s business and people strategies. Furthermore, the Committee assists the Board in ensuring that the Corporation remunerates fairly, responsibly, and transparently. The Human Resources and Remuneration Committee is chaired by an Independent Non Executive Director and comprises of five Non Executive Directors. The CEO and other members of EXCO attend meetings by invitation, but do not vote and are not present when their remuneration is determined. The Committee’s Chairperson provides feedback to the Board after each Committee meeting of key decisions and relevant discussions. The Human Resources & Remuneration Committee meeting attendance during the reporting period appears on page 71 of the Governance Report.

YOUR EXPORT RISK PARTNER

70