PAY IN 2015 – A BRIEF UPDATE ON GLOBAL AND RSA TRENDS 3rd March 2015 Presented by: Lance Meiring Principal Consultant

Global Trends in Remuneration Global Research - Towers Watson Sample: “Top 50” Companies in the S&P 1500 defined as companies with best 15 year track record of Total Shareholder Return. Q. What are the “enduring” high performers doing to design executive reward programmes tailored to meeting their unique business strategies and targets? comply (concurrently) with governance, regulatory and third party constraints on remuneration policy? 25 April 2019 P E Corporate Services SA

Global Trends in Remuneration (cont’d) A. Five key findings 1. Top performers allow compensation plans to evolve as the company grows and matures e.g. different incentives and different metrics as the organisation evolves. fewer metrics in the early stages less focus on l.t.i. in the early stages 2. High performers target market median fixed pay (1-3% below other listed concerns) but t.c.e. 30-40% higher 3. Greater emphasis on share options than share awards (suggests greater short term emphasis). But greater focus on l.t.i. component of the pay mix 4. L.t.i. schemes place high emphasis on “shareholder return” measures (i.e. TSR/ROA/ROE vs. revenue and profit) 5. Executives in high performing companies are a bargain! (high compensation but even higher market cap). 25 April 2019 P E Corporate Services SA

Global Themes - What’s Working and What’s not Working in Executive Pay Research by Towers Watson Global Databases 100 + Exec Compensation Professionals Topia What’s Working What’s Not Working Pay philosophy Guaranteed pay at the median High incentive earnings potential linked to strategy / goals & shareholder value creation Piecemeal & static approaches Incentives not reviewed regularly against business goals Governance and disclosure Boards & Remco’s handling pay policy more professionally Greater sensitivity to external stakeholders Remco’s adopting narrow, compliance approach with limited reference to strategy Pay policy design & benchmarking Best practice approaches Annual market & peer group comparisons Active & competitive market for talent Benchmarking applied inconsistently & opportunistically Goals linked to budget & not focussed on driving sustained outperformance (or performance requirements) Performance-based pay Pay linked to performance Measures & targets set in advance & disclosed Pay/performance reviews not structured regularly or effectively Performance targets arbitrary & negotiable Risk mitigation Greater use of clawbacks & deferrals to align pay outcomes with long-term performance Executive & shareholder interests not aligned Executives lacking “owner mentality”

Key Pay Issues - South Africa 2015 “All’s Fair” – Equal Pay for Equal Work Remco’s are becoming more involved in pay policy at all levels internal and external equity principles will remain under close scrutiny Department of Labour - Draft Code of Good Practice on Equal Pay for Equal Work employer guidelines on eliminating unfair discrimination focus on achieving / implementing equality objective basis for measuring job relativities and justifying differentiation in pay and benefits job evaluation based assessments talent attraction and retention managing the bargaining unit balanced pay mix at executive level 25 April 2019 P E Corporate Services SA

P E Corporate Services SA Pay Disclosure - Trends (“Top 80” Survey of Remuneration Policy Disclosure) Percentage of Companies 2012 2013  2014 35% 61%  60% 54% 63%  71% 24% 69%  75% 75% 95%  98% 13% 22%  24% 30% 40%  43% 76% 83%  82% n/a 60%  65% Remco mandate has been extended to cover remuneration policy at all levels Pay negotiated on total guaranteed package basis How guaranteed package is determined and any subsequent revisions explained in detail Form of s.t.i scheme disclosed S.t.i. target setting policy disclosed Pay mix is disclosed Basis of l.t.i. awards disclosed Remuneration of prescribed officers disclosed 25 April 2019 P E Corporate Services SA

P-E Corporate Services SA 25 April 2019 P-E Corporate Services SA