ECIC IR 2023

Integrated Report 2023

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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 had six meetings in the 2023 Financial Year. Shareholder engagement In line with the requirements of the King IV and the Companies Act, the remuneration policy and the remuneration implementation reports are tabled to the shareholder for a non-binding advisory vote at the Annual General Meeting (AGM). The shareholder considered and supported the remuneration policy and implementation report. Key focus areas for the 2023/24 Financial Year The Committee anticipates the following key focus areas for the next year: • Continue to review remuneration practices and adjust as required. • Review of the Remuneration, Reward and Recognition Policy to ensure that the resultant outcomes support the strategic objectives and that these are appropriate to the changing environment. • Review the Performance Linked Short Term Incentive Policy, specifically the Short-Term Incentive (STI) pool build-up methodology, ensuring it remains fit for purpose. Deliberately focus on building the short-term insurance trade skills to capacitate the new short term insurance trade line of business. • Focus on retaining and attracting critical skills. • Deliberately focus on succession planning, talent development and employee engagement. • Focus on reinforcing the desired culture and encourage ethical behaviour consistent with the Corporation’s values. • Organisational design and structure review to ensure that the Corporation is well-structured and is fit for purpose. • Assess the total cost of remuneration (and its component parts) and its impact on the Corporation’s overall cost base and financial performance.

For the year under review, the committee is satisfied that it has fulfilled its obligations in terms of its mandate.

Part 2: Remuneration Philosophy, Policy and Framework ECIC’s remuneration philosophy is to remunerate and reward employees in line with market norms. ECIC recognises that remuneration, reward, and recognition have a direct link to attraction, performance, engagement, motivation, and retention of talented individuals. Consequently, the Corporation remunerates, recognises and reward employees in line with the norms prevailing in the competitive market and the value they create for the stakeholders. The total remuneration approach includes a competitive mix of base salary, variable pay, employee benefits and recognition awards. The remuneration policy sets out the methodology, agreed by Board, to remunerate employees and it ensures that value is appropriately shared between the Corporation and employees. Executive & Staff remuneration ECIC adheres to a ‘total cost to company’ methodology, which we refer to as the guaranteed pay. All employees, including the executive director, receive guaranteed pay based on their role in the Corporation. Contributions to medical aid, retirement funding and insured benefits are included in the guaranteed pay. In addition to the guaranteed pay, the Corporation offers annual short-term incentives. Remuneration Structure Our remuneration structure comprises broadly of fixed guaranteed pay and short-term incentives (STI) as detailed below: Guaranteed Pay The Corporation seeks to attract and retain the best talent with market-related pay. Guaranteed pay is made up of base pay and benefits such as medical aid and provident fund. It is set considering the size, scope, and complexity of the role, benchmarked to market. Remuneration is reviewed on an annual basis, considering Consumer Price

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