LENMED AIR 2019.pdf

+ + Lenmed will use its discretion to extend the above scheme to long serving staff at newly acquired hospitals after three years of acquisition. Other benefits Staff enjoy other benefits such as medical aid, leave pay, funeral cover and planning for retirement. As new hospitals are acquired over the years, it is the intention that these benefits are standardised across Lenmed. Independent non-executive directors The three independent non-executive directors and one non- executive director continue to hold office since their appointment in September 2010 (Ms Simamane, since October 2012). They are paid an annual retainer, plus attendance fees per meeting. These directors’ fees are confirmed by shareholders at the Lenmed AGM. It is important to note that non-executive directors do not receive any payment related to performance of the Group and do not participate in any bonus arrangements. Non-executive director fees are reviewed annually by management and its advisor. In considering NED fee increases, reference was previously made to fee increases at other hospital groups and to the NED fee annual fee survey conducted by PWC. For the 2019 AGM, as there is a focus on cost containment within the Group and considering the economic climate, it is proposed that the fees payable for the period from the 2019 to the 2020 AGM be increased by 6%, this being the general increase approved for management and staff. As such, it is appropriate for NED fees to be increased by a similar percentage. The NED fee proposal is set out in the following table: Name Retainer fee Meeting fee per meeting Chairman fee per meeting M Meehan R212 000 R16 400 R16 400 B Harie R212 000 R16 400 R16 400 N V Simamane R212 000 R16 400 R16 400 Prof B Goolab R212 000 R16 400 R16 400 2 Monitoring the skills shortage in the sector and efforts to improve this 4 Standardise staff benefits and policies across the Group 1 Latest trends in remuneration governance 3 Cost containment across the Group, especially head office costs FOCUS AREAS FOR 2019 For the year ahead, Remco intends focusing on the following: IMPLEMENTATION REPORT For total remuneration awarded to and realised by executive management during the financial year please refer to Note 26 (Directors’ Emoluments) of the Annual Financial Statements, which covers — for this and the prior year — total remuneration paid to directors, including the annual package, short-term bonuses and the fair value of shares that have vested under SARS. The following table details all awards made under SARS in the current and previous years that have not vested, including the number of awards, the values at date of grant, their award vesting and expiry dates, and the fair value at the end of the reporting period. SARS allocations No of options Strike price at issue date Fair value as at Feb 2019 Vesting/ expiry date 1 August 2016 7 250 000 R3.00 R2 157 851 31 July 2019 1 August 2017 8 100 000 R3.39 R1 002 964 31 July 2020 1 August 2018 9 600 000 R3.56 R572 185 31 July 2021 Management’s short-term targets for the year ended February 2019 included soft and hard targets where the majority weighting was based on growth in HEPS and return on equity, so aligning with shareholder values. Targets were also customised around what Remco considered to be specific priority performance areas for each executive, so as to encourage delivery in these areas. The short-term targets for the year ending February 2020 should be similar to the previous year. The following table shows short-term bonuses earned by management for the year ended February 2019: COO CEO CFO Percentage achieved 65% 55% 65% Bonus achieved R1.885m R2.555m R1.95m Please note: The CMO, Nilesh Patel earned a pro-rated bonus of R985 833, based on 7 months of service. Remco took the company results into account when deliberating on bonus awards, resulting in lower awards than in the previous year. LENMED ANNUAL INTEGRATED REPORT 2019 79