Our strategic objectives can only be delivered with the foresight, dedication and hard work of our employees. The company competes in a small talent pool for a limited set of skills in the global and South African mining industries.
The remuneration committee supports the board by applying a remuneration strategy that is focused on attracting, motivating, rewarding and retaining talent through competitive remuneration practices, while creating shareholder value. Stakeholder feedback is considered in regular reviews of our remuneration policy, which gives effect to the remuneration strategy by supporting business objectives in the wider operating environment and offering a balanced remuneration mix based on the principles set out below.
Fair and responsible
We aim to maximise our employee value proposition. We are committed to offering equitable, market-related and competitive wages to all employees. We operate various wellness programmes to support our employees’ mental health and wellbeing. We create an environment that promotes a sense of belonging for our employees.
We periodically monitor the pay gap, enhance policies supporting gender mainstreaming in the workplace and develop more robust employment equity plans and targets. Annual percentage increases granted to our more junior employees generally exceed those granted to management and executives.
We focus on pay-for-performance in designing our variable pay structures, particularly at senior levels. Our in-house performance-enhancing system creates an opportunity to contract on performance goals, review performance, track developmental areas, assess performance and reward appropriately. This process also promotes staff engagement, constructive feedback for development and performance improvement.
We invest in the development and skills of our employees to maximise learning potential through study assistance and bursaries as well as career-development opportunities based on our talent management strategy.
Fixed pay
The board-approved cost-to-company salary increases in the corporate office from 1 July 2023, based on independent benchmarking processes and after considering the current consumer price index (CPI), are summarised below:
| Paterson grade | Role | F2024 increase1 | F2023 increase2 | |||
|---|---|---|---|---|---|---|
| F-band | Executives (including executive directors) | 5% | 5% | |||
| D and E-bands | Middle and senior management | 6% | 5% | |||
| A to C-bands | General staff | 7% | 6.5% | |||
| 1 | CPI of 6.3% at May 2023 as published by StatsSA. |
| 2 | CPI of 6.5% at May 2022 as published by StatsSA. |
At the bargaining-unit level, multiple-year wage agreements are in place for all ARM-managed operations, except Bokoni Platinum Mine. For Bokoni, a recognition agreement was concluded with the National Union of Mine Workers (NUM) in terms of which NUM would not submit any wage demands for F2023 and F2024.
Employee benefits as a percentage of cost-to-company are the same for all employees, subject to certain employee elections.
Above target
ARM Ferrous
ARM Coal
ARM group
Below target
ARM Platinum
Overall worse than plan
ARM Ferrous
ARM Platinum
ARM Coal
ARM group
Maximum achieved
ARM Ferrous
ARM Coal
Between target and maximum
ARM Platinum
ARM group
| * | Based on profit before interest and tax (PBIT). |
| ** | Safety modifier adjusted for fatalities. |