OUR GOVERNANCE
REMUNERATION REPORT
The Board of Directors is committed to retaining the talented Executives and employees while ensuring that their stay at the Fund is wholesome in accordance with best market practices.
Beyond just compensation, the Fund is deeply committed to empowering our lower-income employees. We provide them with tailored benefits designed to enhance their skills and potential. Over time, this not only boosts their earning capacity, but also propels their career trajectories. We offer an extensive array of development opportunities through our diverse training platforms. Additionally, the Fund actively supports and encourages employees to pursue degree programmes and professional qualifications that both augment our business and foster their personal growth.
Fair and responsible remuneration
The Fund conducts salary surveys to keep abreast of the market compensation trends. This commitment ensures that our remuneration practices are both equitable and in harmony with prevailing market and regulatory standards.Beyond just compensation, the Fund is deeply committed to empowering our lower-income employees. We provide them with tailored benefits designed to enhance their skills and potential. Over time, this not only boosts their earning capacity, but also propels their career trajectories. We offer an extensive array of development opportunities through our diverse training platforms. Additionally, the Fund actively supports and encourages employees to pursue degree programmes and professional qualifications that both augment our business and foster their personal growth.
Remuneration Structure
The Fund's compensation framework is intricately tied to our strategic objectives, forging a direct connection between remuneration, and both individual and business performance. This design fosters a culture of excellence and drives the realisation of our strategy.
Our approach aims to not only attract and retain the industry's best talent, but also to motivate and acknowledge their contribution to the Fund’s performance.
Annual remuneration surveys are conducted by the Fund to remain competitive in the market, factoring in our performance against established goals.
Such meticulous planning ensures we consistently attract and retain the top-tier talent essential for achieving the Fund's objectives.
The Fund’s Remuneration Policy at a glance:
| Reward objectives | Reward principles |
|---|---|
| Attract | Competitive |
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| Motivate | Simple |
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| Recognise | Fair |
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| Retain | Sustainable |
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The Fund’s pay structure may include any or all the following: fixed pay, performance-based increments, and variable pay.
Fixed pay
The Fund has developed a fixed pay range that is linked to an approved grading system. This is aimed at ensuring that remuneration is fair, competitive and there is internal equity and consistency within the Fund.
Performance based increments
Performance based increment (PBI) is a method of remuneration used by the Fund to ensure appropriate reward for performance. It links pay progression to an assessment of individual performance usually measured against pre-agreed objectives. Pay increases awarded through PBI are normally consolidated into basic pay. The increments are based on the appraisal results for the year, the positioning of everyone in the pay grades, as well as the pay increment budget for the year. The PBI increases with performance and decreases as one’s pay moves towards the maximum of the grade, as shown below:
| Performance Rating | Position in Range | ||||
| Q1 | Q2 | Q3 | Q4 | Above Max | |
| A+ | 10.11% | 6.74% | 3.37% | 2.70% | 0.00% |
| A | 6.74% | 4.49% | 2.25% | 1.80% | 0.00% |
| B | 3.37% | 2.25% | 1.12% | 0.90% | 0.00% |
| C | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| D | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Variable pay
The Fund also has annual incentives in the form of bonuses paid to qualifying staff. Bonus pay is a onetime lump-sum payment, and the objective is to recognise and reward employee’s contributions, retain exceptional and very good performers, motivate staff, and increase productivity. Individual employee bonus awards are based on agreed and reviewed performance, and the overall contribution to the Funds’ results for the year in review.
Benefits
The Fund provides benefits in line with best market practice and regulatory requirements. Medical insurance cover and death benefits are provided to all Fund employees and their dependents. A retirement benefit scheme called the “Staff Provident Fund” is provided to all permanent employees and an “Annual Service Award” is provided to temporary staff. A “Gratuity Scheme” is provided for the Executive Committee (EXCO). These are aimed at motivating and preparing for retirement.
Recognition policy
The Fund recognises and rewards individuals and groups of employees who:
The award(s) can be given to a “Group” or an “Individual” and is(are) both financial and non-financial.
Long service incentive
Although service may not necessarily automatically contribute to performance, the Fund does value the commitment and loyalty of long serving employees. This is done in the form of long service awards. These awards recognise long service from 10 years, and then continue this acknowledgement with awards every 5 years thereafter.
Remuneration of Executive Management
The Board sets targets and objectives for the entire Fund at the beginning of the financial year in line with the strategy of the Fund. These targets and objectives cascade down to the Managing Director who then approves the performance measure and targets for each Executive Committee member.
Performance against the individual objectives is monitored through a performance appraisal system which is moderated by the Staff Administration and Corporate Affairs Committee and thereafter presented to the full board for approval. The remuneration package and long-term incentive for the Managing Director and Deputy Managing Director are determined on the same basis and using the same qualifying criteria as for other employees. The appointee’s remuneration is subject to an annual performance review. These packages are approved by the appointing authority, the Ministry of Gender, Labour, and Social Development.
Annual single total figure of remuneration:
| *Top Management | Salary (Millions) | Benefits (Millions) | Bonus (Millions) | Pension (Millions) | Gratuity (Millions) |
|---|---|---|---|---|---|
| Managing Director | 385 | 74 | 264 | 83 | 181 |
| Deputy Managing Director | 788 | 157 | 241 | 122 | 150 |
*Part year remuneration for Managing Director and full year remuneration for Deputy Managing Director.
Non-executive directors’ remuneration and terms of engagement
Terms of service
All non-executive directors are provided with a letter of appointment setting out their remuneration. Directors are appointed by the Ministry of Gender, Labour, and Social Development for a three-year term, renewable once.
Fees
Non-executive directors receive a retainer for their service on the Board and a meeting attendance fee for Board and Board Committee meetings. Fees are paid monthly in arrears. There are no contractual arrangements for compensation for loss of office. Executive director(s) do not receive any retainer or meeting attendance fee. In determining the remuneration of non-executive directors, the Board considers the extent and nature of their responsibilities, and comparative remuneration offered by other major entities of a similar nature.
The Fund’s remuneration structure:
| Directors' fees (Ushs) | |
|---|---|
| Board Chairman | |
| Annual retainer | 153,786,000 |
| Fee per sitting | 3,600,000 |
| Director | |
| Annual retainer | 121,410,000 |
| Fee per sitting | 1,528,000 |
| Board committee | |
| Member (Fee per sitting) | 1,350,000 |
Summary of 2022/2023 Board emoluments
| Category of Directors | Board retainer fees and Board sitting allowance | Other benefits | Pension contributions | Total | Year |
|---|---|---|---|---|---|
| Non - Executive | 890,189,600 | 582,542,166 | 62,914,860 | 1,535,646,626 | 2020 |
| Non - Executive | 1,087,371,400 | No additional benefits paid | 38,649,150 | 1,126,020,55 | 2021 |
| Non - Executive | 1,062,602,200 | 417,113,520 | 47,653,617 | 1,527,369,337 | 2022 |
| Non - Executive | 1,451,145,000 | No additional benefits paid | 30,115,260 | 1,481,260,260 | 2023 |