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Tiger Brands Limited Integrated Annual Report
2014
Remuneration report
Executive service contracts
Executive directors, prescribed officers and
other members of the executive committee are
not employed on fixed-term contracts and have
standard employment agreements with current
notice periods of either one or three months.
The current retirement age is 63 although a
retirement age of 65 applies to certain
individuals.
Contractual entitlements on termination of
employment include, for employees who leave
for reasons of retirement or retrenchment, a
pro
rata
short-term incentive payment, subject to the
extent of achievement of the relevant financial
and strategic performance targets at the end of
the financial year and the necessary individual
performance agreement being in place for the
individual concerned at the date of his or her
exit. Such pro rata incentive payment is subject
to the relevant employee being in service for
a minimum period of three months during the
financial year in question. No pro rata bonus
is paid for employees who leave other than for
reasons of retirement or retrenchment.
The termination rules relating to options issued
under the Tiger Brands Phantom Cash Option
Scheme and instruments issued under the Tiger
Brands Limited 2013 Share Plan are set out on
pages 90 to 93. All options issued under the
Tiger Brands (1985) Share Option Scheme
have vested in full and are therefore not subject
to any termination conditions.
On 15 June 1999, Mr IWM Isdale entered
into an employment agreement with the
company in respect of his services as
Company Secretary. The employment
agreement is subject to a notice period of
not less than three months to be given by
either party. The company may elect to
make the payment of a cash sum
in lieu
of notice of termination.
In the event of such termination of employment
creating an obligation on the employer to pay
severance pay to the individual concerned in
terms of the Labour Relations Act 1995, or the
Basic Conditions of Employment Act 1997,
then the severance package shall be equal to
a multiple of monthly remuneration. The multiple
applicable to Mr IWM Isdale currently equates
to seven months’ remuneration. The multiple is
limited to the number of months that remain
from the termination date to the date on which
the employee reaches his normal retirement
age. Mr IWM Isdale's normal retirement date
is the end of April 2015. The payment is
based on pensionable remuneration plus the
value of medical aid, group life and permanent
health insurance benefits. In addition, a fixed
amount will be payable by the company as
compensation for the loss of benefits arising in
terms of the company’s post-retirement death
benefit scheme.