Directors' remuneration
   
 

This report on remuneration and related matters covers issues which are the concern of the board as a whole in addition to those which were dealt with by the remuneration committee.

REMUNERATION POLICY
The human resources and remuneration committee has a clearly defined mandate from the board aimed at:

  • ensuring that the company’s chairman, directors and senior executives are fairly rewarded for their individual contributions to the company’s overall performance; and
  • ensuring that the company’s remuneration strategies and packages, including the incentive schemes, are related to performance, are suitably competitive and give due regard to the interests of the shareholders and the financial and commercial health of the company.
DIRECTORS’ SERVICE CONTRACTS
All executive directors’ normal contracts are subject to six calendar months’ notice. Non-executive directors are not bound by service contracts.

There are no restraints of trade associated with the contracts.

SUMMARY OF REMUNERATION

 
 
            Medical      
    Fees  Per- Benefit Retire- fund Gains on    
  Basic for  formance and ment contri- share    
Name salary  services  bonus1 allowance2 fund  butions scheme3  Other Total 
FOR THE 18-MONTHS                  
ENDED 31 DECEMBER  
2004
Executive directors                  
Dr CJ Fauconnier 3 251 761   352 292 872 890   18 456 – 4 055  4 499 454 
MJ Kilbride 1 799 401   213 825 1 040 905  248 793 22 712  1 450 612 3 206 4 779 454 
CF Meintjes 1 777 820   192 761 486 172 216 692 24 764 1 180 505 3 101 3 881 815 
DJ van Staden 1 760 764   199 653 641 224 232 020 22 764 3 268 325 3 107 6 127 857 
RG Wadley 1 623 352   203 669 779 890 229 731   1 775 103 3 127 4 614 872 
                  23 903 452 
Less gains on share scheme             (7 674 545)
Total remuneration paid by Kumba           16 228 907 
Non-executive directors                  
MLD Marole (Chairman)   470 000    15 052         485 052 
PM Baum4   124 167    5 672         129 839 
BE Davison4   156 250    3 974         160 224 
TL de Beer   337 500    14 982         352 482 
JJ Geldenhuys   322 500    16 511         339 011 
Dr D Konar   307 500    10 549         318 049 
AJ Morgan   232 500    5 811         238 311 
WA Nairn4   119 167    4 099         123 266 
SA Nkosi   232 500    9 156         241 656 
CML Savage   187 500              187 500 
NS Segal   247 500    873         248 373 
F Titi5   224 167    12 040         236 207 
PL Zim4   124 167    4 099         128 266 
GS Gouws6    14 203    1 361         15 564 
                  3 203 800 
                   
 
1. The performance bonus scheme was approved by the board. This incentive applies to all employees throughout the group.
2. Includes travel and entertainment allowances.
3. As set out on this page.
4. Fees paid to their respective employers and not to them as individuals.
5. Fees paid to respective employer during period 1 July 2003 to October 2003 (R33 333), thereafter paid directly to individual (R190 834).
6. Resigned during October 2003, fees and allowances paid to respective employer and not to the individual.
   
 
 
            Medical      
    Fees Per- Benefit  Retire- fund Gains on    
  Basic for  formance and ment contri- share    
Name salary  services bonus1  allowance2 fund  butions  scheme3  Other  Total 
FOR THE YEAR ENDED                  
30 JUNE 2003                  
Executive directors                  
Dr CJ Fauconnier  1 801 817   193 894 524 914   10 296   10 450  2 541 371 
MJ Kilbride 1 080 404   125 117 421 005  123 356 10 296   7 145 1 767 323 
CF Meintjes 1 026 742   111 393 309 971 110 027 10 296 121 344 6 887 1 696 660 
DJ van Staden 1 044 872   115 120 336 563 114 377 10 296   6 633 1 627 861 
RG Wadley 1 034 908   119 658 400 984 119 179     6 947 1 681 676 
                  9 314 891 
Less gains on share scheme             (121 344)
Total remuneration paid by Kumba           9 193 547 
Non-executive directors              
MLD Marole (Chairman)   144 833   2 256         147 089 
TL de Beer   167 000   3 766         170 766 
JJ Geldenhuys   167 000   2 518         169 518 
GS Gouws4   60 518   6 305         66 823 
Dr D Konar   135 500   1 872         137 372 
AJ Morgan   104 000   546         104 546 
SA Nkosi   72 500   1 695         74 195 
Prof NS Segal   101 750             101 750 
F Titi4   83 373   3 776         87 149 
CML Savage   67 500             67 500 
                  1 126 708 
                   
 
1. The performance bonus scheme was approved by the board. This incentive applies to all employees throughout the group.
2. Includes travel and entertainment allowances.
3.  As set out on directors remuneration.
4. Fees paid to their respective employers and not to them as individuals.
5. Fees paid to respective employer during period 1 July 2003 to October 2003 (R33 333), thereafter paid directly to individual (R190 834).
6. Resigned during October 2003, fees and allowances paid to respective employer and not to the individual.
    
  Retirement amounts paid or receivable by executive directors are paid or received under defined contribution retirement funds.
   
 
DIRECTORS’ INTEREST IN KUMBA SHARES
         Beneficial   Non-beneficial
Director Direct Indirect Direct Indirect
AT 31 DECEMBER 2004        
Dr CJ Fauconnier 21 880      
MJ Kilbride        
CF Meintjes        
DJ van Staden        
RG Wadley 47 870      
         
MLD Marole (Chairman)        
TL de Beer        
JJ Geldenhuys        
GS Gouws        
Dr D Konar 168      
AJ Morgan        
WA Nairn   51 649    
SA Nkosi        
NS Segal        
F Titi        
         
AT 30 JUNE 2003        
Dr CJ Fauconnier 96 870 103 750    
MJ Kilbride 28 990      
CF Meintjes        
DJ van Staden 18 490      
RG Wadley 47 870      
         
MLD Marole (Chairman)        
TL de Beer        
JJ Geldenhuys        
GS Gouws        
Dr D Konar 168      
AJ Morgan        
SA Nkosi        
Prof NS Segal        
F Titi   843 799    
 

There has been no change to the interest of directors in share capital since the year-end.

On 31 December 2004 no director had direct or indirect interests of more than 1% in the share capital of the company.

   
 

Directors’ share options and restricted share awards

The following options and rights in shares in the company were outstanding in favour of directors of the company under the company’s share option schemes:

 
MANAGEMENT SHARE OPTION SCHEME              
 
          Pre-tax          
        Proceeds if gain/(loss) if     Sale    
  Options      exercisable at  exercisable at Options   price/    
  held at  Exercise   31 December 31 December exercised  Exercise  market Pre–tax  
  31 December price Exercisable 2004 2004* during price price gain Date
Name 2004 R period R R the year R R R exercised
FOR THE 18–MONTHS                    
ENDED 31 DECEMBER  
2004  
Executive directors  
Dr CJ Fauconnier 307 520 28,05  2008/12/03 13 530 880 4 904 944          
  65 440 35,00 2009/11/01 2 879 360 588 960          
  92 880 41,50 2011/03/16 4 086 720 232 200          
Total 465 840     20 496 960 5 726 104          
MJ Kilbride 35 840 18,74 2010/07/25 1 576 960 905 318 23 880 18,74 37,10 438 437 2003/12/03
  151 320 28,05 2008/12/03 6 658 080 2 413 554 64 840 28,05 37,10 586 802 2003/12/03
  40 710 35,00 2009/11/01 1 791 240 366 390          
  50 750 41,50 2011/03/16 2 233 000 126 875          
Total 278 620     12 259 280 3 812 137 88 720     1 025 239  
CF Meintjes 20 490 18,50 2009/01/04 901 560 522 495 5 120 18,50 41,80 119 296 2004/02/19
  24 890 18,74 2010/07/25 1 095 160 628 721 8 290 18,74 44,45 213 136 2004/04/28
            8 290 18,74 41,80 191 167 2004/04/28
  135 640 28,05 2008/12/03 5 968 160 2 163 458 58 120 28,05 37,30 537 610 2003/12/09
  35 220 35,00 2009/11/01 1 549 680 316 980          
  48 040 41,50 2011/03/16 2 113 760 120 100          
Total 264 280     11 628 320 3 751 754 79 820     1 061 209  
DJ van Staden 37 080 18,74 2010/07/25 1 631 520 936 641 7 915 18,74 42,00 184 103 2004/03/01
            1 345 18,74 41,80 31 016 2004/03/01
  141 350 28,05 2008/12/03 6 219 400 2 254 533 20 570 28,05 41,80 282 838 2004/03/01
            40 000 28,05 42,00 558 000 2004/03/01
  35 630 35,00 2009/11/01 1 567 720 320 670          
  49 730 41,50 2011/03/16 2 188 120 124 325          
Total 263 790     11 606 760 3 636 169 69 830     1 055 956  
RG Wadley 209 280 28,05 2008/12/03 9 208 320 3 338 016          
  39 020 35,00 2009/11/01 1 716 880 351 180          
  44 380 41,50 2011/03/16 1 952 720 110 950          
Total 292 680     12 877 920 3 800 146          
* It is presumed that directors will not exercise options which are out of the money.          
                     
MANAGEMENT DEFERRED PURCHASE SHARE SCHEME – KUMBA SHARES        
          Pre-tax          
        Proceeds if gain/(loss) if     Sale    
  Options     exercisable at exercisable at Options   price/    
  held at Exercise   31 December 31 December exercised Exercise market Pre-tax  
  31 December price Exercisable 2004 2004 during price price gain Date
  2004 R period R R the year R R R exercised
FOR THE 18-MONTHS  
ENDED 31 DECEMBER  
2004  
Executive directors  
Dr CJ Fauconnier                    
MJ Kilbride           16 780 11,75 37,10 425 373  2003/12/09
CF Meintjes           5 120 18,50 41,80 119 296 2004/02/19
DJ van Staden           20 000 10,00 35,50 510 000 2003/12/18
  15 000 10,00 35,51 382 650 2003/12/18
  16 510 10,00 35,52 421 335 2003/12/18
  10 000 11,75 35,50 237 500 2003/12/19
            27 030 11,75 36,20 660 884 2003/12/19
Total           88 540     2 212 369  
RG Wadley           982 8,42 37,20 28 262 2003/12/09
            60 908 8,42 37,10  1 746 841 2003/12/09
Total           61 890     1 775 103  
                     
  MANAGEMENT SHARE OPTION SCHEME
 
        Pre-tax 
      Proceeds if gain/(loss) if 
       exercisable at  exercisable at 
  Options Exercise   30 June 30 June 
  held at price Exercisable 2003 2003*
Name year–end R period R R 
FOR THE YEAR  
ENDED 30 JUNE 2003  
Executive directors  
Dr CJ Fauconnier 307 520 28,05  2008/03/12 9 256 352 630 416 
  65 440 35,00 2009/11/01 1 969 744 (320 656)
Total 372 960     11 226 096 309 760 
MJ Kilbride 59 720 18,74 2010/07/25 1 797 572 678 419 
  216 160 28,05 2008/12/03 6 506 416 443 128 
  40 710 35,00 2009/11/01 1 225 371 (199 479)
Total 316 590     9 529 359 922 068 
CF Meintjes 25 610 18,50 2009/01/04 770 861 297 076 
  41 470 18,74 2010/07/25 1 248 247 471 099 
  193 760 28,05 2008/12/03 5 832 176 397 208 
  35 220 35,00 2009/11/01 1 060 122 (172 578)
Total 296 060     8 911 406 992 805 
DJ van Staden 46 340 18,74 2010/07/25 1 394 834 526 422 
  201 920 28,05 2008/12/03 6 077 792 413 936 
  35 630 35,00 2009/11/01 1 072 463 (174 587)
Total 283 890     8 545 089 765 771 
RG Wadley 209 280 28,05 2008/12/03 6 299 328 429 024 
  39 020 35,00 2009/11/01 1 174 502 (191 198)
Total 248 300     7 473 830 237 826 
           

* It is presumed that directors will not exercise options which are out of the money.
** No options were exercised during the year ended 30 June 2003.
   
  MANAGEMENT DEFERRED PURCHASE SHARE SCHEME – KUMBA SHARES
 
        Pre-tax          
      Proceeds if gain/(loss) if     Sale    
      exercisable at exercisable at Options   price/    
  Options Exercise   30 June 30 June exercised Exercise  market Pre-tax  
  held at price Exercisable 2003 2003 during price price gain Date
Name year-end R period R R the year R R R exercised
FOR THE YEAR  
ENDED 30 JUNE 2003  
Executive directors  
Dr CJ Fauconnier  
MJ Kilbride 16 780 11,75  2007/11/04 505 078 307 913          
CF Meintjes 5 120 18,50 2009/01/04 154 112 59 392 10 240 18,50 30,35 121 344 2003/05/27
DJ van Staden 51 510 10,00 2007/03/23 1 550 451 1 035 351          
  37 030 11,75 2007/11/04 1 114 603 679 501          
Total 88 540     2 665 054 1 714 852          
RG Wadley 61 890 8,42 2008/03/01 1 862 889 1 341 775          
   
 
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