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REMUNERATION REPORT long-term growth of the Group while maximising shareholders’ returns • To ensure that remuneration arrangements are equitable, transparent, well communicated and easily understood, aligned with the interest of shareholders and adequately disclosed • To align individual rewards with the Group’s performance, the interests of its shareholders, and a prudent approach to risk management • To promote compliance with global regulatory trends and governance, with an emphasis on longterm sustainability. Senior Executives Competitive remuneration Attraction and retention Performancerelated Remuneration and reward strategies are set at levels that enable the Group to attract, motivate and retain the right skills required to efficiently manage the operations and growth of the business. Salaries for Senior Executives are set at a level to attract and retain high-calibre executives with international experience that will benefit the Company and its operations. Annual performance goals of Senior Executives shall be aligned to shareholder interest. This is to ensure that Senior Executives make prudent decisions in deploying the Group’s resources to generate sustainable growth. The Group’s performance-based incentive programs for the executive management shall be aligned to individual performance and the overall performance of the Group. This approach drives a high performance culture that rewards individual contributions and the achievement of business results that enhance shareholder value. Senior Executives can earn an annual bonus of up to 25% of their base salary, depending on the achievement of agreed corporate and personal objectives. Long-term The remuneration structure will be designed to reflect the long-term nature of Dangote Cement’s business while balancing risks and reward. The performance period for this long-term component will typically run for three years, with the Executive not receiving any bonus until the end of the performance period. The structure of the long-term incentive is under consideration at present. Fairness Dangote Cement will regularly benchmark its remuneration practices against international peer organisations whose business profiles are broadly similar to that of the Group, using remuneration surveys, peer reviews etc. This will ensure that the overall pay takes into cognisance both the external environment as well as the Group’s conditions at any point in time. It is the Company’s policy to define criteria and mechanisms for determining levels of remuneration and the frequency of the review of these criteria. Our policy also ensures that senior executives’ remuneration is linked to Group and individual performance in line with section 5.3 (g) of the SEC Code and the UK Code of Corporate Governance. The Remuneration and Governance Committee has been charged with the responsibility of leading the process for determining the remuneration of Senior Executives and Non-Executive Directors. 124 Annual Report 2016

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