The Office of the Principal Executive Officer

Transcription

1 The Office of the Principal Executive Officer Supporting the Board to ensure GEPF acts in the best interest of its members and pensioners. Annual Report

2 The Office of the Principal Executive Officer comprises the Principal Executive Officer and a management team. It supports the Board of Trustees, ensuring that GEPF acts in the best interests of its members, pensioners and beneficiaries. This office is also responsible for day-to-day operations. The management structure consists of the Principal Executive Officer, the Head of Corporate Services, the Head of Investments and Actuarial, and the Head of the Board Secretariat. The Principal Executive Officer assists the Board in meeting its fiduciary and oversight obligations in line with the GEP Law, and other laws and regulations. The Principal Executive Officer also represents GEPF on a policy level, and has the overall responsibility for financial reporting and disclosure, consolidating and amending the Fund s rules and valuating liabilities and assets. The Principal Executive Officer implements all Board decisions and gives effect to the Board s strategy. The Principal Executive Officer is supported in this role by the Risk, Internal Audit, Resources and Communications Managers. The Head of Investments and Actuarial monitors and manages GEPF s assets and liabilities, and is responsible for conducting actuarial valuations, assetliability modelling, advising the Board on investment strategy and execution, and overseeing the implementation of the Responsible Investment Policy. The Board Secretariat ensures that the Board practices good governance at all times, provides guidance to the Board on the duties of the Trustees, ensures that the trustees are adequately inducted and trained and provides an executive secretariat function to the Board and its committees. The Head of Corporate Services manages and oversees the internal operations and corporate services within the Office of the Principal Executive Officer. This includes the management of legal and compliance, finance and facilities management. 68

3 Mr John Oliphant Principal Executive Officer and Acting Head: Investments and Actuarial B.Sc (Actuarial Science), Wits University B.Sc (Hons) Advanced Mathematics and Finance, Wits University Board member of the United Nations supported Principals of Responsible Investment (UN-PRI) Board member of the Principal Officers Association Chairman of the PRI South African Network Chairman of Code for Responsible Investing South Africa (CRISA) Member of the Investment Committee of the Pan African Infrastructure Development Fund (PAIDF) Member of the Investment Subcommittee of the South African Bureau of Standards (SABS) Board Member of the JSE SRI Advisory Committee Ms Adri van Niekerk Head: Board Secretariat B.Admin Public Management, University of Pretoria Honours degree in Public Management, University of Pretoria Member of the Integrated Reporting Committee of South Africa Member of the Institute of Directors Member of the International Corporate Governance Network (ICGN) Member of the Global Reporting Initiative (GRI) Ms Jolene Moodley Head: Corporate Services B Proc, University of Durban - Westville LLB, University of Durban - Westville LLM Corporate Law, University of Pretoria Advanced Programme in Risk Management, Unisa Board Member of Compliance Institute South Africa Annual Report

4 During the year, the Board approved six additional positions to ensure that it can deliver on its strategic objectives. Board of Trustees Resources Manager Enterprise Wide Risk Manager Finance and Audit Committee Communications Manager Office of the Principal Executive Officer Internal Audit Manager Communications Assistant Messenger Services Principal Executive Officer 2 x Senior Internal Auditors Head: Investments & Actuarial Head: Corporate Services Head: Board Secretariat Actuarial Manager Legal & Compliance Manager Senior Committee Officer Benefits Manager Finance Manager Committee Officer ESG Manager 2 x ESG Analysts Office Administrator Administrative Assistant Executives Investment Manager 2 x Investment Analysts Receptionist Outsourced Cleaning & Facilities Security IT 70

5 Progress towards being an employer of choice GEPF endeavours to ensure sound employer-employee relations through fair employment practices and the protection of employee rights. GEPF regards employees as a valuable asset to enable it to achieve its broad business objectives. As such, it aims to provide working conditions and benefits that create an optimal environment for people to give of their best and reach their full potential in fulfilling their duties to the Fund, Board and broader stakeholder portfolio. This initiative stems from the Board s strategic imperative which is to make GEPF an employer of choice. In line with this strategic objective, GEPF endeavours to ensure sound employer-employee relations through fair employment practices and the protection of employee rights. Employee dialogue that was initiated in 2011 was continued during the reporting period to enhance transparency, open communication and interaction between management and staff in general. GEPF recorded a 0% cent staff turnover rate during the financial year and employees are kept motivated and encouraged to live the values of the Fund. Employment equity GEPF had established an Employment Equity Committee in line with the Employment Equity Act and related legislation. The Committee had received training on the Employment Equity Act. Its work will come to fruition in the coming financial year and a comprehensive and integrated employment equity strategy will be developed to guide the process. The Fund s commitment to employment equity in practice is evident in the table and figure below. A total of 88% of GEPF staff, and 66% of executive management, are African, Indian or Coloured. GEPF currently has four vacant positions that will be filled in the coming financial year. Level African Coloured Indian White M F M F M F M F Top management Senior management Professional - middle management Skilled Semi-skilled Unskilled Total Annual Report

6 Employment equity by percentage African Female African Male White Female White Male Coloured Female Indian Female 46% 8% 31% 4% 4% 8% Executive remuneration and performance management In line with best practice, King III and other codes of good governance, GEPF endeavours to ensure a meaningful link between the performance of its employees and their remuneration. Performance bonuses are allocated for above-average performance and beyond, and this is done at the end of the financial year. Ex-gratia payments were not made during the financial year. Executive remuneration is reflected in the table below: Total Cost to Company Performance Bonuses John Oliphant R * R Joelene Moodley R R Adri van Niekerk R R Total R R * This amount includes three months remuneration as Head of Investments and Actuarial (R516k) and nine months as the Principal Executive Officer (R1 848k) Use of benchmarks and incentive schemes During January 2012, GEPF established a Remuneration Committee to align the remuneration policy and practices to the Board s strategic objectives and encourage individual performance across all levels over the long term. The Committee determines remuneration packages appropriate to attract, retain and motivate high performers and ensure all benefits are justified and correctly valued, among other things. It furthermore gives high-level advice on human resource matters and Trustee remuneration. GEPF subscribes to three reputable South African remuneration surveys to apply the correct pay levels for each position and grade. The survey results are compared to find an equitable benchmark for GEPF remuneration generally. A few administrative positions have been identified to be above the market. This situation is due to historical remuneration practices and GEPF will address this by appointing incumbents on the correct salary levels when the positions become vacant. 72