parliamentary committee presentation 19 march 2010
TRANSCRIPT
Parliamentary Committee Presentation
19 March 2010
CONTENTS
Slide 2
• Performance Management
• Vacancies & Employee Turn Over
• Executive Remuneration Structure
• Board Remuneration Structure & Performance
• Employment Equity
Performance Management
Slide 3
• Performance Management System
- Corporate Plan is concluded with Key Performance Areas, Indicators and Targets
cascaded to Executives/Business Units and then to lower levels in the company.
- Personal Development Plans are completed aligned with Individual Scorecard
- The Scorecard Performance Areas are based on business strategic goals and
objectives
• Performance Management Reviews
- Performance Management cycle starts with planning on 01 April.
- Ongoing performance monitoring by conducting quarterly reviews
- Final performance review conducted at the end of the financial year
Current Executive Positions & Vacancies
Position Occupied Vacant
Chief Executive Officer X
Chief Finance Officer X
Chief Technical Officer X
Chief Operating Officer X
Executive: Sales & Marketing X
Executive: Capital Program X
Executive: Business Support X
Executive: Special Projects X
Slide 4
Vacancies & Employee Turn Over
Slide 5
• Newly Established Executive Positions
- Chief Operations Officer
- Sales & Marketing Executive
• Recruitment & Approval Process
- Candidates (COO & Sales and Marketing Executive) have been
identified
- Approval of appointments by Board is underway
• Employee Turn over
- The position for Chief Technical Officer became vacant as from 1
March 2010
Key Performance Areas
Slide 6
Key Performance
AreaKey Performance Indicator Description
Strategic(40%)
Reduced Telecommunications Prices Once off 10% of price reduction from the Wholesale STM-1 pricing as measured against the 2010 Pricing Benchmark.
Broadband Connectivity Access
Expand the availability of broadband connectivity to a minimum of 5 (five) Broadband Infraco independent POPs in addition to POPs in 6 cities (available via Neotel). Ability to provide backhaul connectivity to USALs in 1 (one) previously underserviced area as per license terms and conditions.
Financial(30%)
Revenue R412 M
EBITDA (R98 M)
Net Profit/LossAccording to the Broadband Infraco’s business plan the company will become profitable after five years of operation.
Debt FundingDrawdown from existing debt facility from financial institutions during the financial year is R142 M.
Key Performance Areas
Slide 7
Key Performance Area Key Performance Indicator Description
Operations, Customer and Capital Program
(30%)
Actual Time to restore Core Network Faults
Actual time to restore a core network (fibre network and associated electronics) fault on 80% of all reported faults per month (within 8 hours).Actual time to restore a core network (fibre network and associated electronics) fault on 20% of all reported faults per month (within 10 hours).
Actual Time to restore facilities related faults
Actual time to restore a facilities related (support systems such as batteries and fire control systems) faults which is service affecting (within 4 hours).
Availability of Network at Customer Service Level Agreement
Availability calculated as a percentage of the uptime to the downtime of a customer service
Increased Customer BaseInfraco must achieve a market share of 12%
Percentage of Projects put into Commercial against approved plan
All projects to be completed and put into commercial operation to earn revenue, against approved annual plan
Project Cost Variance against approved budget
A 5% variance in final expenditure from the approved project budget
Remuneration Structure: Executives
Slide 8
• The Total Cost To Company remuneration elements
include:
- Annual Pensionable Remuneration
- Car Allowance
- Performance bonus of 30% (maximum) of Total
Cost To Company based on company & individual
performance
Board Remuneration & Performance
Slide 9
• Remuneration Structure
- Broadband Infraco falls under SOE size B ( Revenue between R243m –
R2,5bn)
- Chairpersons and Non Executive Directors annual retainers fees are
determined according to the remuneration model developed by the DPE
- Board remuneration is effected on quarterly basis and disclosed in the
annual report at the end of the financial year
• Performance Evaluation
- The Board’s performance evaluation is conducted annually
- The latest evaluation was conducted in 2008/9 financial year
- The outcome of the evaluation indicated good governance with regards
to the Board’s operations and effectiveness
Employment Equity Status
Slide 10
Male Female
African Coloured Indian White Total African Coloured Indian White Total
Executives 0 0 3 1 4 1 0 0 0 1
Thank You
Slide 11