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REMUNERATION REPORT
Remuneration report
continued
102
Tiger Brands Limited Integrated Annual Report
2014
Succession planning
Development of a formal succession plan for
senior and executive management takes place
annually. The plan is discussed and approved
by the executive committee and submitted to
the remuneration and nomination committee for
discussion and final approval. The objective
is to ensure that immediate succession is in
place and also to develop a talent pool with
potential for development and future placement.
This includes managers at lower levels. The
succession planning process includes all of
the company’s international businesses.
External company board appointments
Tiger Brands encourages members of the
executive committee to consider accepting
appropriate opportunities to serve as non-
executive directors on the main board or board
sub-committees of external companies. Tiger
Brands believes this policy encourages
members of the executive to broaden their skills
base and experience. A formal policy has
been adopted in this regard and, in terms
thereof, an executive member will be limited to
one substantive outside directorship. In terms of
the policy, the Chairman of Tiger Brands, as
Chairman of the nomination committee, as well
as the Chairman of the remuneration committee
are required to authorise any such appointment
based on a recommendation from the Chief
Executive Officer. Directors’ fees paid to
executive members by outside companies in
terms of the policy may be retained by the
individual concerned. Tiger Brands currently
has three members of the executive committee
serving in the capacity of non-executive
directors on the main boards of external
companies.
Non-executive directors
Non-executive directors are expected to carry
out all the tasks and duties normally associated
with the position of a non-executive director as
defined by the Companies Act, King III and the
memorandum of incorporation of the company.
The board and each of its committees have a
charter which sets out the responsibilities of the
board and its respective committees.
Non-executive directors are expected to
provide the organisation with leadership,
expertise and knowledge on strategy,
enterprise, innovative ideas and to contribute
to the business planning of the company.
Non-executive directors are compensated
based on their overall contribution and input
to the company, and not just for attendance
at board and board committee meetings.
Consistent non-attendance at meetings, if
applicable, will be appropriately handled
as part of the company’s board evaluation
process. On this basis, non-executive directors
receive an annual fee for their services on the
board and board committees, rather than a
base fee and a separate meeting attendance
fee, which is contemplated by King III.