Blue Label Telecoms Integrated Annual Report 2019

98 Blue Label integrated annual report 2019 Remuneration report DEAR SHAREHOLDERS It has been a busy year for the Remuneration Committee. We have engaged actively with institutional shareholders to address concerns expressed with our policy. Our aim is to fortify relationships with our shareholders through aligning interests which is achieved through honest dialogue and an understanding of our remuneration practices and how they will be applied within the organisation. Working with our Human Capital team we have engaged external advice and support to address these concerns and bring our policy closer to best practice of fair and responsible remuneration aligned to shareholder interests and value creation. In the revision of our policy we have partnered with business to ensure that the policy is fit for purpose and is aligned to the operational strategy and the talent requirements of Blue Label. In choosing which financial metrics to use in STIs and LTIs, we have benchmarked against our peers, considered best practice, and more importantly incorporated the specific business goals of Blue Label. It is important to ensure consistency and a meaningful analysis of performance. When considering an appropriate peer group, we gave consideration to the industry sector, the size of comparator companies, the complexity of the business, the extent of international operations and talent considerations (companies from which individuals might be recruited or to where individuals might be lost). We aimed to choose a peer group that is robust and would allow for a fair reflection of our performance over a period of time, which allows a fair unencumbered measure of performance in returning value to shareholders in comparison to alternative investments shareholders could have made. This report has been drafted in accordance with the requirements of King IV. We have divided the report into three sections: u u Background statement regarding committee considerations and decisions u u Our remuneration philosophy, policy and framework u u Implementation and remuneration disclosure of the prescribed officers (joint CEOs and CFO) and Non-Executive Directors (NED). Section 1 provides an overview of how the Remuneration Committee has championed our alignment to King IV’s Code on Corporate Governance and how we have aimed to address institutional shareholder concerns with changes to our policy. Section 2 summarises our revised remuneration philosophy and policy, together with an overview of our revised total rewards strategy that will be a key focus area for Blue Label in FY20. The full policy can be accessed here . Finally, Section 3 provides an overview of FY19 performance and discloses payments made to Executive Directors during the year in terms of performance against targets, as well as the fees paid to Non-Executive Directors. Looking forward to FY20, we will implement and anchor our new reward philosophy and policy across the Group. We will continue to champion the pay for performance principle and ensure that the revised policy is aligned to our business strategy and growth agenda and deliver total shareholder returns. The Human Capital team will continue to expand our total reward philosophy, in line with our broader employee value proposition #HappinessisBlu. We trust that our holistic and considered approach will enable us to align our talent to shareholder interests, while differentiating us within the marketplace and enabling us to attract and retain talent. We invite you to give us your views on our revised policy and its implementation looking forward. We would like to thank everyone who engaged with us through the year and provided valuable input and who have ultimately enabled us to align further to all of our stakeholder requirements. We are mindful that during the year under review, the Group performance and resulting impact on our share price, has been hugely disappointing. The Executive Directors have consequently waived any entitlements to STI bonuses for this financial year. We acknowledge that we are on a journey of moving Blue Label closer to best practice and remain committed to this. GD Harlow Chairman of the Remuneration Committee