(1) Establishment and composition of Remuneration Committee
The Accounting Authority must establish a Remuneration Committee consisting of a suitable number of persons with the knowledge and skills needed to perform the functions of the Committee.
(2) Functions of Remuneration Committee
| (a) | The Remuneration Committee must advise the Accounting Authority on any matter relating to remuneration in order to enable the Accounting Authority to develop consistent, fair and impartial strategies, policies, procedures and processes for the compensation of its members and staff so as to attract, motivate and retain talented people. |
| (b) | The Remuneration Committee must evaluate and must make recommendations to the Accounting Authority in respect of the following issues relating to the remuneration of both the staff and the Chief Executive Officer of the SETA: |
| (i) | Developing guidelines for, and reviewing the compensation and performance of staff members of the organisation. |
| (ii) | Reviewing and approving corporate goals that are relevant to the compensation of the Chief Executive Officer. |
| (iii) | Determining the Chief Executive Officer's compensation in accordance with applicable rules and regulations. |
| (iv) | Evaluating the Chief Executive Officer's performance against the goals and objectives contemplated in this paragraph. |
| (v) | Reviewing and reassessing the adequacy of the remuneration policy annually and recommending changes, if any, to the Accounting Authority for approval. |
| (vi) | Ensuring that the members' and committee members' remuneration is in accordance with the requirements of the PFMA and the Treasury Regulations that relate to finance and the remuneration of those members. |
| (c) | The Finance and Remuneration Committee must present the Audit Committee with quarterly and annual financial statements. |
