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| Corporate governance report | Page 1 2 3 4 5 6 7
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| REMUNERATION AND SHARE OPTION
AND PLANS REPORT |
The remuneration policy of the group is structured to
attract, retain and incentivise employees, and rewards
performance that meets the interests of both the group
and
its shareholders. |
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| Remuneration philosophy |
| Sun International is committed to ensuring that its
approach to the remuneration of its management and
staff underpins the need to attract, retain and incentivise
the best talent available within the industry and the
country. It is Sun International's philosophy to adopt best
practice and ensure that overall remuneration takes
account of current trends. To this end, a comprehensive
Total Cost of Employment (TCOE) remuneration strategy
for all permanent full-time positions is adopted by all
South African operations, and where possible and
practical from a taxation and regulatory standpoint, by the
rest of the southern African operations. All increments are
based on TCOE. This provides a platform to enable a
degree of employee choice in package structuring and
reflects current best practice. |
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| Performance management is used as a management tool to
ensure that all components in the group's operations are
functioning optimally through continuous assessment, clear
accountability and fair rewards for additional outputs. |
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| Remuneration structure |
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Sun International's policy is to compensate executive
managers on or about the
75th percentile (Q3) of the
relevant remuneration market. Remuneration scales are
benchmarked and are generally structured so that
midpoints equate to the upper quartile levels.
Through the remuneration and nomination committee,
Sun International reviews its remuneration strategy on a
regular basis and benchmarks itself against companies of similar size to ensure that the overall level of
compensation of its senior executive management is
competitive and structured to achieve the optimum
balance between guaranteed and variable remuneration,
both short term (bonus scheme) and long term (share
incentive schemes).
Remuneration strategy at the executive and senior
management level comprises market related guaranteed
remuneration and variable remuneration in the form of
participation in an executive bonus scheme, comprising
'EVAŽ' and 'EBITDA' target components. Additionally,
and where appropriate, executives also participate in
the share plans which are subject to pre-determined
performance criteria. |
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| Share options held by executive directors in terms of their participation in the Sun International Limited
Employee Share Option Scheme as at 30 June 2007. |
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Date of
grant |
Exercise
price
R |
Numbe
rof options
held
30 June
2006 |
Options
exercised
during
year ended
30 June
2007 |
Number
of options
held
30 June
2007 |
Lapse
date |
Number
of options
vesting
30 June
2007 |
| RP Becker |
30.06.2005 |
61,825 |
200 000 |
– |
200 000 |
30.06.2015 |
100 000 |
| DC Coutts-Trotter |
04.12.2001 |
22,975 |
4 375 |
(4 375) |
– |
04.12.2011 |
– |
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06.03.2003 |
26,500 |
8 750 |
(8 750) |
– |
06.03.2013 |
– |
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01.08.2003 |
31,555 |
85 625 |
(26 875) |
58 750 |
01.08.2013 |
35 313 |
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12.09.2003 |
32,950 |
37 500 |
– |
37 500 |
12.09.2013 |
28 125 |
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25.11.2003 |
39,005 |
56 250 |
– |
56 250 |
25.11.2013 |
42 187 |
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01.09.2004 |
40,950 |
46 875 |
– |
46 875 |
01.09.2014 |
23 437 |
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30.06.2005 |
61,825 |
46 875 |
– |
46 875 |
30.06.2015 |
23 437 |
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286 250 |
(40 000) |
246 250 |
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152 499 |
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486 250 |
(40 000) |
446 250 |
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252 499 |
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| Share incentive schemes |
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Due to changes in the regulatory environment and best
practice, it has been determined that the existing share
option scheme is no longer appropriate and accordingly
no further options will be granted under this scheme.
The share option scheme will nevertheless remain in place
for options already granted under the scheme, until such
time as these options are exercised or lapse.
In line with latest practice the group has adopted three share
plans, based on equity settled EGP (Equity Growth Plan), a
CSP (Conditional Share Plan) and a DBP (Deferred Bonus
Plan), which support the principle of alignment of
management and shareholder interests, with performance
conditions governing the vesting of the plan instruments.
Conditions may include, as appropriate, achievement of predetermined
or relative total shareholder return. |
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| Awards made to executive directors under share plans as at 30 June 2007 |
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Plan |
Date of
grant |
Grant price
R |
Number
of grants
held
30 June
2006 |
Number
of grants
made during
year ended
30 June
2007 |
Number of grants
held
30 June
2007 |
| DC Coutts-Trotter |
EGP |
30.06.2006 |
82,74 |
27 919 |
– |
27 919 |
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EGP |
29.06.2007 |
149,55 |
– |
16 550 |
16 550 |
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44 469 |
| RP Becker |
EGP |
30.06.2006 |
82,74 |
12 551 |
– |
12 551 |
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EGP |
29.06.2007 |
149,55 |
– |
8 305 |
8 305 |
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20 856 |
| DC Coutts-Trotter |
CSP |
30.06.2006 |
82,74 |
35 533 |
– |
35 533 |
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CSP |
29.06.2007 |
149,55 |
– |
21 063 |
21 063 |
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56 596 |
| RP Becker |
CSP |
30.06.2006 |
82,74 |
18 972 |
– |
18 972 |
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CSP |
29.06.2007 |
149,55 |
– |
12 277 |
12 277 |
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31 249 |
| DC Coutts-Trotter |
DBP |
20.09.2006 |
95,14 |
– |
13 210 |
13 210 |
| RP Becker |
DBP |
20.09.2006 |
95,14 |
– |
3 798 |
3 798 |
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| Executive directors and selected senior employees of SIML
participate in certain or all of these new plans. Awards
under the EGP, CSP and DBP have been made in the past
two years. |
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