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OUR PERFORMANCE

REMUNERATION
REPORT

The Fund’s reward structure is aligned to the organisational strategic objectives and remuneration is directly linked to individual and business performance, thereby promoting a high-performance culture and achievement of strategy.

It is aimed at attracting, motivating, recognising and retaining talented individuals. To determine the remuneration of employees, the Fund conducts salary surveys every year to benchmark with the market and considers the Fund’s performance against set objectives. This is aimed at attracting, motivating, and retaining high calibre staff needed to deliver on the Fund’s objectives.

In the midst of the ongoing pandemic remuneration has been a focus and we made decisions very early on that we would not retrench or subject any of our staff to remuneration cuts.

The funds remuneration policy at a glance

REWARD OBJECTIVES

ATTRACT

  • Enable the Fund to recruit the right people

MOTIVATE

  • Incentivise employees to deliver and execute strategy

RECOGNISE

  • Acknowledge individual contribution and performance
  • Create member value and support the achievement of business strategy

RETAIN

  • Foster loyalty in the Fund
  • Retain high performing employees

Reward principles

Competitive
  • We assess competitiveness on a total reward basis
  • Reward reflects an individual’s role, experience, performance and contribution
  • Reward is set with reference to external market practice and internal relativity
Simple
  • Reward is simple, clear and easy to understand
  • We avoid unnecessary complexity
  • Reward is delivered accurately
Fair
  • Policies are transparent and applied consistently and equitably
  • Reward decisions are trusted and properly governed
  • Reward is legal and compliant
Sustainable
  • Our reward framework is flexible to meet the changing needs of the business and the economy
  • We reward in a responsible way

REMUNERATION STRUCTURE

The Fund’s pay structure may include any or all of the following; fixed pay,
performance-based

Fixed pay

The Fund has developed a fixed pay range that is linked to an approved grading system. This is aimed at ensuring that remuneration is fair, competitive and there is internal equity and consistency within the Fund.
Performance based increments

Performance based increment (PBI) is a method of remuneration used by the Fund to ensure appropriate reward for performance. It links pay progression to an assessment of individual performance usually measured against pre-agreed objectives. Pay increases awarded through PBI are normally consolidated into basic pay. The increments are based on the appraisal results for the year, the positioning of each individual in the pay grades, as well as the pay increment budget for the year. The PBI increases with performance and decreases as one’s pay moves towards the maximum of the grade, as shown below.

Performance Rating Position in Range
Q1 Q2 Q3 Q4 above max
A+ 11.2% 8.97% 8.16% 7.34% 0.00%
A 7.62% 6.10% 5.54% 4.49% 0.00%
B 4.86% 3.88% 3.35% 3.18% 0.00%
C 0.00% 0.00% 0.00% 0.00% 0.00%
D 0.00% 0.00% 0.00% 0.00% 0.00%
Variable pay

The Fund also has annual incentives in the form of bonuses paid to qualifying staff. Bonus pay is a onetime lump-sum payment and the objective is to recognise and reward employee’s contributions, retain exceptional and very good performers, motivate staff and increase productivity. Individual employee bonus awards are based on agreed and reviewed performance and the overall contribution to the Funds’ results for the year in question.
Benefits

The Fund provides benefits in line with market practice and regulatory requirements. The Fund provides medical insurance cover and death benefits to all Fund employees and their dependents. In addition, a retirement benefit scheme “Staff Provident Fund” is provided to all permanent staff and an “Annual Service Award” provided to temporary staff, where as a “Gratuity Scheme” is provided for the Executive Committee (EXCO). This is aimed to motivate and prepare staff for retirement.

Other benefits currently available to the MD; DMD and Corporation secretary include:

  • Company car
  • Membership to health club/gym
  • Personal security.

  • Recognition policy

    The Fund recognises and rewards individuals and groups of staff who make exceptional (sustained or one-off) contribution that promotes the aims and objectives of the Fund or meet exceptional shorter-term operational challenges. The award(s) can be given to a “Group” or an “Individual” and is(are) both financial and non-financial.

  • Long service incentive

    Although service may not necessarily automatically contribute to performance, the Fund does value the commitment and loyalty of long serving employees. This is done in the form of a long service award. These awards recognise service in 5-year bands, starting with service from 10 years’ and then continuing with awards every 5 years.

  • Remuneration of statutory appointees

    The remuneration package and long-term incentive for the Managing Director, Deputy Managing Director and Corporation Secretary are determined on the same basis and using the same qualifying criteria as for other employees. The appointee’s remuneration is subject to an annual performance review. This package is approved by the appointing authority, who is the Minister of Finance, Planning & Economic Development.

Annual single total figure of remuneration

Top Management Salary (Millions) Benefits(Millions) Bonus(Millions) Pension(Millions) Gratuity(Millions)
Managing Director 796 52 249 121 142
Deputy Managing Director 695 91 217 107 139
Corporation Secretary 492 115 107 71 93

Non-executive Directors’ remuneration and terms of engagement

  • Terms of Service

    All non-executive directors are provided with a letter of appointment setting out their remuneration. Directors are appointed by the Minister of Finance, Planning & Economic Development for a three-year term, renewable once.

  • Fees

    Non-executive directors receive a retainer for their service on the Board and a meeting attendance fee for Board and Board Committee meetings. Fees are paid monthly in arrears. There are no contractual arrangements for compensation for loss of office. Executive director(s) do not receive any retainer or meeting attendance fee. In determining the remuneration of non-executive directors, the Board considers the extent and nature of their responsibilities, and comparative remuneration offered by other major entities of a similar nature.

The Fund’s Remuneration Structure

Directors’ fees (Ushs) Board Chairman

Annual retainer 114,000,000
Fee per sitting 2,000,000
Director
Annual retainer 90,000,000
Fee per sitting 1,528,000
Board committee
Member (Fee per sitting) 1,350,000

Summary of 2020/2021 Board emoluments

Category of Directors Board retainer Fees & Board sitting allowance Other benefits Pension contributions Total Year
Non - Executive 771,009,714 532,658,099 42,877,400 1,346,545,213 2019
Non - Executive 890,189,600 582,542,166 62,914,860 1,535,646,626 2020
Non - Executive 1,087,371,400 No additional benefits paid 38,649,150 1,126,020,55 2021

The oversight of Remuneration is done by the Staff Administration and Corporate Affairs Committee. See 'Remuneration in Employees' write-up.