SOE Executive Management Performance and Remuneration Structure

SA Express Performance Management

Business ObjectivesBusiness Objectives

THE PERFORMANCE MODEL

• Strategic Planning • Objectives• Targets• Contract• Development Plan

• Informal reviews (1-on-1)• Monitoring Performance• Feedback• Coaching

• End of cycle formal review (Bi-annual)

• Development Plans

• Reward and recognition

• STI and LTI• Managing Poor

Performance

Talent Management – Remuneration - DevelopmentTalent Management – Remuneration - Development

Performance Management Methodology

► Mechanism Short-Term Incentive Scheme

SA Express uses the Balance Scorecard Performance Management System for all levels (including Executives)

The Performance Contracts are cascaded from the Corporate targets

Performance Bonuses are only payable if the Corporate targets are met

Long-Term Incentive Scheme Linked to retention Is a rolling three year incentive

scheme for all management (including critical skills at a staff level)

90% of the STI is banked for 2 years for the individual

All Executives and Management who gained entry to the scheme must achieve and sustain performance

► Processes All scorecards are

contracted once a year

All reviews are done twice a year – In consultation with and on approval by the CEO

Bonuses are only payable on approval by the board

► Measurable objectives SA Express measures

the following 5 perspectives for a balanced approach to performance

Finance Strategic Customer Business Process Learning and

Development

SA Express Talent Management

Leadership and Talent management Framework (LTF\MF)

Co

mp

lexi

ty /

Wo

rk L

evel

sStrategic Intent

Strategic Execution

Tactical Management

Optimisiing Systems

Jim Collins

Good to Great

Steve Drotter

Leadership Pipe line ModelElliot Jacques

SST (Stratified Systems Theory)

Highly Capable Individual

Contributing Team Member

Competent Manager

Effective Leader

Executive

1

2

3

4

5

Manage a Business

Manage Managers

Manage Others

Manage Self

All global theories amount to similar outcomes…

Talent Management

Leadership ImperativesLeadership Imperatives Strategic positionsStrategic positions

Talent PoolsTalent Pools

Retention StrategiesRetention Strategies

Deployment of TalentDeployment of Talent

•Build

• Buy

•Build

• Buy

• Development

• Reward and Recognition

• Development

• Reward and Recognition

Corporate PlanCorporate Plan

Leadership - Communication - Accountability - Skills Alignment - Measurement Leadership - Communication - Accountability - Skills Alignment - Measurement

Talent Management

Talent Management

Identi

fy -

A

ssess

- A

ccele

rate

Identi

fy -

A

ssess

- A

ccele

rate

Succ

ess

ion

Succ

ess

ion

Succession Planning

Identify SP jobs

Develop job profiles

Identify successors

Develop successors

Documentation / reporting

Appoint successor to target job

PAD SITUATIONAL ANALYSIS•Vision, mission, strategy•Future work demand predictions•Future incumbent supply predictions

GAPS•Key focus areas, Business criteria, Demand vs Supply

RESOURCING OBJECTIVES •Current occupied• to be maintained• to be eliminated •Current vacant• internal appointment• external appointment •New jobs to be created•internal appointment•external appointment

RESOURCING STRATEGY•Recruitment and Selection•Redeployment•Transfers•Designate positions•Succession planning

Str

ate

gic

Reso

urc

ing

         

6SP - Succession Plan

GlobalGlobal

WorkplaceWorkplace

TeamTeam

Leadership Development

IndividualIndividual LeadershipPipeline

LeadershipPipeline

Leadership Development

Model

Leadership Development

Model

Levels of workLevels of workExecutive Development

• Mentorship and Coaching

• Business Schools

(Short courses)

• Global Exposure

• Strategic conversations

• Book Reviews

Executive Development

• Mentorship and Coaching

• Business Schools

(Short courses)

• Global Exposure

• Strategic conversations

• Book Reviews

SA Express MDPSA Express MDP

SA Express SDPSA Express SDP

SA Express Structure Management

Top echelon

Executive ManagerFinance

Executive ManagerFinance

General ManagerHuman ResourcesGeneral ManagerHuman Resources

Chief Executive OfficerChief Executive Officer

Regional General ManagerAfrican Expansion

Regional General ManagerAfrican Expansion

General ManagerStrategy and Market Development

General ManagerStrategy and Market Development

General ManagerOperations

General ManagerOperations

Company SecretaryCompany Secretary

SA ExpressBoard of Directors

SA ExpressBoard of Directors

General ManagerCommercial

General ManagerCommercial

General ManagerTechnical

General ManagerTechnical

Chief Information OfficerChief Information Officer

Chief Financial OfficerChief Financial Officer

Executive ManagerSafety, Security, QM and

Environment

Executive ManagerSafety, Security, QM and

Environment

Executive ManagerAirport OperationsExecutive ManagerAirport Operations

Executive ManagerMarketing and Customer Care

Executive ManagerMarketing and Customer Care

Executive ManagerLegal

Executive ManagerLegal

Demographic Breakdown

Race

FEMALE 

MALE  

Grand Total

African White AFRICAN COLOURED WHITE  

2007 

5 2 7 1 2 17

29.41% 11.76% 41.18% 5.88% 11.76% 100.00%

2008 

5 2 6 2 2 17

29.41% 11.76% 35.29% 11.76% 11.76% 100.00%

2009 

4 2 6 2 2 16

25.00% 12.50% 37.50% 12.50% 12.50% 100.00%

2010/03/12 

4 2 6 2 1 15

26.67% 13.33% 40.00% 13.33% 6.67% 100.00%

• Total Executive Head Count of 15 as at 12 March 2010

• Race Profile = 20% white and 80% black

• Gender profile = 40% female and 60% male.

• Overall employment profile reflects very positively against national and industry benchmarks

Turnover at an Executive Level

Status and filling of vacancies

Turnover: 6% Average (Open/Close -1 *100) Turnover: 6% Average (Open/Close -1 *100)

•Position requirements changed due to restructuring at an executive level

•The SA Express CEO position will become vacant within the next month

•Position requirements changed due to restructuring at an executive level

•The SA Express CEO position will become vacant within the next month

Year Positions Turnover Reason

2007 17 1 Resignation

2008 17 1 Resignation

2009 16 1 Retirement

SA Express Remuneration Management

Remuneration Philosophy

Base / Basic Salary

+ Long-term Incentive

+ Short-term Incentive

Tot

al E

arn

ings

/ T

otal

Cos

t to

Com

pan

y

Tot

al R

emu

ner

atio

n /

Tot

al C

ost

of

Em

plo

ymen

t

+ Other Benefits+ Cost of employee benefits

Gu

aran

teed

Pac

kag

e

Var

iab

le P

ay

Bas

e / B

asic

Sal

ary

Fix

ed P

ay

Market BenchmarkMarket Benchmark

SA Express Remuneration PhilosophySA Express Remuneration Philosophy

Executive Management Remuneration Framework

•SA Express pays on the median as per its Remuneration Philosophy•SA Express adheres strictly to the DPE Remuneration guidelines for all Directors

- Movement adjusted against CPI since publication- Board members are afforded industry travel concessions

•SA Express pays on the median as per its Remuneration Philosophy•SA Express adheres strictly to the DPE Remuneration guidelines for all Directors

- Movement adjusted against CPI since publication- Board members are afforded industry travel concessions

Level

Low   High  

Lower Guide Median

Upper Guide

Lower Guide Median Upper Guide

General Manager 1,041,576 1,151,196 1,210,222 1,357,761 1,567,157 1,679,908

Executive Manager 602,392 759,551 916,856 750,168 907,474 1,064,632

SA Express broad band Level Transnet SAA Paterson SST

6General and Executive

Manager 106, 104 EM3 / ES3 E1 / E2 SE1

5 Senior Manager 109 SM2 / SS2 D3 / D4 MP2 / MP3

4 Manager 110 MO1 / SO1 D1 / D2 SL / MP1

SummaryPerformance Management► SA Express Performance Management is well entrenchedTalent Management► The Talent Management Framework leads to a consistent supply of

talented leaders Build – Talented individuals are identified through the Performance

Management System Buy – We recruit Talent from the Private and Public sector The succession plan has been in place since 2006 and reviewed annually

Organisation Management► SA Express experienced low staff turnover and managed to reduce the

number of Execs through efficiencies The long-term retention mechanisms proofs to be successful

Remuneration Management► SA Express adheres to the DPE guidelines for SOEs► SA Express remains competitive against market demands► SA Express is in line with market benchmarks and will continuously uphold

its philosophy

Thank YouQ & A