• Driving a high-performance culture: Performance contracts include financial and non-financial, qualitative and quantitative, as well as lag and lead metrics. Performance measurement metrics are set annually and reviewed for broad alignment to the PPS Group's objectives and strategies. The mix of short-term and long-term incentives are aligned to risk, in order that management's performance is aligned with members' long-term interests and the remuneration structure does not induce excessive or inappropriate risk taking. • Balance between fixed and variable remuneration: The mix of guaranteed pay and short- and long-term incentives is in line with the risk appetite and culture of the company and is designed to meet the PPS Group’s operational needs and strategic objectives, based on targets that are stretched, verifiable and relevant. • Long-term value creation: Given the long-term nature of the business, the remuneration structure needs to support both long-term value creation and the achievement of short-term objectives. • Pay fairness: PPS strives for a total reward offering that is aligned with the principle of equal pay for equal work. Remuneration Framework PPS Group manages total cost to company (TCTC), which incorporates base pay, retirement, medical aid and other benefits. The general approach to guaranteed pay is to target the market median or the 50th percentile of the industry we operate in and is benchmarked against the industry annually. Increases are determined by Remco in conjunction with executive management and take into consideration market related increases, individual and PPS Group performance and other economic indicators. Remco reviews and approves increases for Group Executives and senior management. PPS Group’s short-term incentives aim to reward short-term performance in the form of an annual cash bonus. This is linked to achieving financial, strategic and operational objectives against objectives set by line management, influenced by the financial performance of the Group and increasing a high-performance culture across the Group, allowing for su cient dierentiation between performers and non-performers. For sales employees, variable remuneration structures are in place. PPS Group provides its employees with benefits such as medical aid, retirement fund and risk benefits. These benefits form part of the TCTC package. Employees also participate in reward and recognition schemes to enable performance and motivation to drive PPS Group initiatives and objectives and living up to the PPS Group’s values. The key objective of the long-term incentives is to focus participants on long-term key performance indicators in line with the vision, strategy, roles, expectations, financial and risk parameters of the organisation. Long-term incentives are structured to ensure alignment of the interests of management with members’ interests. Remco has final discretion over the participation of eligible employees in long-term incentives and the allocation values. Guaranteed Pay: Benefits: Short-term Incentive: Long-term Incentive: R R R Remuneration Framework 99 Remuneration report by the Group Remuneration Committee
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