Fair and responsible pay
The process of developing a framework that describes fair, responsible and transparent pay is an evolving journey and, as a group, AngloGold Ashanti’s remuneration policy reflects the principles of fair and responsible pay
|Remuneration policy element||Fair and responsible pay principle|
|AngloGold Ashanti’s remuneration is aligned to the strategic objectives and shareholder outcomes||AngloGold Ashanti’s variable pay is directly correlated to the achievement of measures linked to its scorecard. These metrics are linked to the creation of value over a mix of short-, medium- and long-term periods. Metrics are approved by the committee and recommended to the board for approval. AngloGold Ashanti is transparent with the approved metrics, and these are reported in the annual report.|
|Remunerate to motivate and reward the right behaviour and performance of employees and executive management teamEnsure that performance metrics are challenging, sustainable and cover all aspects of the business including both critical financial and non-financial drivers||Individual performance is measured on an annual basis for all employees. These include both individual and Company performance measures; financial and non-financial drivers including environmental, social, and governance (ESG) and people metrics. The DSP incentive scheme includes 37.5% of metrics that measure non-financial targets. The metrics are reviewed by the committee on an annual basis to ensure that they are reflective of stretch performance.|
|Ensure that the remuneration structure is aligned to the organisation's values and that the correct governance frameworks are applied across remuneration decisions and practices||All remuneration falls within the ambit of the committee; all senior management remuneration is subject to approval by the committee. The DSP metrics include ESG and gender diversity metrics. Safety, community and diversity are included in AngloGold Ashanti’s values. The incentive scheme furthermore contains a forfeit/claw-back and malus clause. The executive management team is subject to a minimum shareholding requirement.|
|Promote an ethical culture and responsible corporate citizenship|
It is imperative that all employees receive a minimum level of remuneration that enables participation in the economy. At this point, AngloGold Ashanti can confirm that all employees are paid at least 25% above the respective regional minimum wage, and in most instances much higher than this. Furthermore, benchmarking exercises are conducted on an annual basis in each region to ensure that all employees are paid a market-related salary for the role which they occupy, with due consideration to levels of performance.
All decisions on remuneration are scrutinised to ensure that they are:
|Ensure fair and responsible executive remuneration in the context of overall employee remuneration in the organisation||The difference in pay between job levels is justified in the context of the level of responsibility of the job, complexity of the job, and the consequence and impact thereof on the organisation. The Gini co-efficient is used to ensure that the income dispersion between high- and low-income earners is not outside market norms.|
|Apply appropriate global remuneration benchmarks||The Mercer Survey is used to benchmark salaries for the executive management team. For senior management and below, benchmarking is conducted using locally available reputable surveys including Remchannel (South Africa), Hay evaluation methodology and others.|
|Provide competitive reward to attract, motivate and retain highly skilled executive management team and employees vital to the success of the organisation|
The executive management team comparison is based on a selected group of global competitors, (see the remuneration report, page 138 of the <IR>) which is reviewed and approved by the committee on an annual basis to ensure that it remains appropriate. In reviewing the participants, the committee considers:
Each component of remuneration (base salary, variable pay and benefits) is analysed and compared with the market information and the overall package is reviewed accordingly. The market median is generally targeted for most roles, while the market 75th percentile is targeted for scarce skills.
AngloGold Ashanti tracks the Gini co-efficient from a South African perspective to ensure that the income dispersion between high- and low-income earners is not outside market norms.
The analysis is conducted by PricewaterhouseCoopers Inc. (PwC) as an independent third party and based on the November 2019 analysis, PwC concluded that the Gini co-efficient for AngloGold Ashanti had deteriorated marginally year on year from 0.43 in 2018 to 0.48 in 2019. This is comparable to the South African mining industry benchmark of 0.42.
The decline in the Gini co-efficient is mostly attributable to the reduction in staff in the South African region, as well as to changes to the executive management profile. In addition to the Gini coefficient, AngloGold Ashanti tracks the global wage differential.
The wage differential outcome, as calculated by PwC in November 2019, indicated that the Chief Executive Officer is paid, on a total rewards basis, approximately 79 times the median of all employees in AngloGold Ashanti.
This compares favourably to our competitors when considering AngloGold Ashanti’s geographic footprint and market capital.
Diversity and inclusion
On diversity and inclusion, a framework has been drafted that is aligned with the UN Global Compact Principles and also with our own objectives and values. We believe this framework will help foster the empowerment of all staff, irrespective of race, gender, ethnicity, religion and sexual orientation. The framework, known as the Global Diversity and Inclusion Framework, followed a global gender assessment conducted across all operations to determine the diversity requirements of each. The document, which has 10 key pillars including organisational culture and management style, will help us breathe life into our corporate values – particularly to value diversity – and will assist in continuing to build an organisation that better reflects the demographics of the societies in which we operate.
Significant work has been completed in the preparation of our inclusion in the inaugural Bloomberg Gender-Equality Index (GEI). This further demonstrates our commitment to paying more than lip service to addressing the challenge of gender inequality, both internally and in the communities where we operate.
The group executive management team has 33% female representation, while 19% of the global workforce is comprised of females. The AngloGold Ashanti board of directors has 36% female representation, which represents a 9% improvement from 2018 due to the appointment of Ms Maria Ramos as a non-executive director in June 2019.
The Company subscribes to various bodies and interest groups that focus on gender diversity, which has provided the opportunity to adopt best practices from other organisations, particularly in the mining industry.
Furthermore, our gender diversity metric which forms part of our DSP incentive scheme has achieved stretch performance for the DSP 2019 results. For our DSP 2020 measures, enhanced targets have been approved by the committee as outlined on page 17 of the <NOM>, emphasising the Company’s commitment to the promotion of gender equality and diversity across all operations.