Integrated report <IR> 2020

Remuneration implementation report – JANUARY TO DECEMBER 2020

This section of the Remuneration Report explains the implementation of the remuneration policy by providing details of the remuneration paid to members of the executive management team and non-executive directors for the financial year ended 31 December 2020.

Executive management team pay

Mercer conducts a biennial bespoke survey of executive management team remuneration. For 2020, the committee reviewed the comparator group against AngloGold Ashanti to ensure that changes in the market had not led to variances that made the current matches inappropriate. The review consisted of a detailed analysis of companies who it was felt were appropriate for inclusion in the benchmark.

The companies included in the comparator group were ranked in terms of a number of criteria selected in areas which were aligned with AngloGold Ashanti. The table below summarises the comparator group:

2020 Comparator benchmark group

  • Agnico Eagle MinesCanada
  • Anglo American Platinum LimitedSouth Africa
  • AntofagastaUnited Kingdom
  • Barrick Gold CorporationCanada
  • B2Gold CorporationCanada
  • Gold Fields LimitedSouth Africa
  • Kinross Gold CorporationCanada
  • Newcrest Mining LimitedAustralia
  • Newmont/GoldcorpUnited States
  • South32Australia
  • Yamana Gold IncorporatedCanada

Annual salary review 2020

In January 2020, annual increases resulted in each member of the executive management team receiving an increase in line with the CPI in their respective jurisdictions. This is in line with increases for all AngloGold Ashanti employees. The respective CPI increases applicable to the executive management team were as follows:

  • RegionInflationary salary increase
  • Australia2%
  • South Africa5%
  • USA2%

It is to be noted that special salary increase adjustments were implemented effective 1 January 2020 for Mr Ntuli and Mr Bailey for purposes of market alignment.

Details available in the single total figure reporting table below.

Executive movements

The company announced on 30 July 2020 that former CEO, Mr Dushnisky, was to step down effective 1 September 2020. AngloGold Ashanti Chief Financial Officer, Ms Ramon was appointed Interim CEO, and Mr Ian Kramer, Senior Vice President: Group Finance was appointed Interim CFO. These interim appointments were effective 1 September 2020.

Effective 1 September 2020, Mr Dushnisky stepped down from all Directorships of the Company but remained as an employee of the Company for the six-month period to 28 February 2021 to ensure an orderly transition. On cessation of his employment, on 28 February 2021, he was paid the balance of his 12-month notice period of $2.8m, which included his DSP FY2020 cash bonus. These payments are in accordance with our termination policy. The details of his remuneration for FY2020 are reflected in the single total figure reporting below. All payments made to Mr Dushnisky were made and disclosed in accordance with the JSE Listing Requirements, King IV guidelines and our shareholder-approved remuneration policy. No ex-gratia payments were made, and no additional payments are owed to Mr Dushnisky.

The Interim CEO and Interim CFO‘s remuneration details are reflected as follows below:

  • Ms Ramon: CFO from 1 January 2020 to 31 August 2020 and Interim CEO from 1 September 2020 to 31 December 2020
  • Mr Kramer: Interim CFO (in his capacity as a prescribed officer) from 1 September 2020 to 31 December 2020

An allowance aligned to the Company’s acting allowance policy formed part of Ms Ramon and Mr Kramer’s remuneration to recognise the additional responsibilities associated with these roles, for the period 1 September 2020 to 31 December 2020.

Ms Maria Sanz Perez, Executive Vice President: General Counsel and Company secretary resigned effective 30 June 2020.

Ms Lizelle Marwick was promoted to the role of Executive Vice President: General Counsel and Acting Company secretary, effective 1 July 2020. Ms Marwick received an allowance in recognition of acting in the Company secretary role from 1 July 2020 to 10 January 2021. The promotion of Ms Marwick illustrates the success of the strong bench strength and talent management within the Company.

Mr Pierre Chenard, Executive Vice President: Strategy and Business Development, retired effective 31 January 2021.

Ms Tirelo Sibisi, Executive Vice President: Group Human Resources, resigned effective 1 April 2021; her last day of employment will be 30 September 2021.

The single total figure reporting below, provides the remuneration details of executive directors and prescribed officers aligned to the shareholder approved standard conditions of employment. It comprises an overview of all the pay elements available to the executive management team for the year ended 31 December 2020.

Single total figure of remuneration

The following are definitions of terminology used in the adoption of the reporting requirements under King IV:

Reflected

In respect of the DSP awards, remuneration is reflected when performance conditions have been met during the reporting period.

Settled

This refers to remuneration that has been included in prior reporting periods and has now become payable (may not yet have been paid) to the executive in the current period.

Single total figure of remuneration
Base salary Awards earned during the period reflected but not yet settled
(1)ZAR denominated portion (1)USD/AUD denominated portion Pension scheme benefits Once-off relocation costs Cash in lieu of dividends (2)Other benefits (3)DSP awards CSLTIP awards Sign-on awards granted Other payments Single total figure remuneration
ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 (9)USD '000

Executive directors

                     
KPM Dushnisky (4) 2020 21,657 5,266 13 1,759 25,796 54,491 3,312
  2019 18,608 4,648 2,726 142 2,578 61,842 90,544 6,268
KC Ramon (5) 2020 5,864 4,594 834 385 924 22,507 16,513 51,621 3,138
  2019 5,585 3,981 779 194 893 29,135 33,064 73,631 5,097
Total executive directors 2020 5,864 26,251 6,100 398 2,683 48,303 16,513 106,112 6,450
  2019 5,585 22,589 5,427 2,726 336 3,471 90,977 33,064 164,175 11,365

Prescribed officers

                     
SD Bailey 2020 4,465 3,305 75 1,259 24,103 33,207 2,019
  2019 3,879 2,560 37 1,160 18,087 5,917 31,640 2,190
PD Chenard 2020 5,282 4,255 2,468 8,554 20,559 1,250
  2019 2,933 3,900 1,270 1,729 18,362 19,356 47,550 3,292
GJ Ehm 2020 10,462 284 409 710 32,108 43,973 2,673
  2019 9,074 251 163 611 25,329 33,064 68,492 4,742
L Eybers 2020 10,832 284 377 798 31,896 44,187 2,686
  2019 1,377 7,945 251 1,135 64 2,310 25,054 29,160 67,296 4,659
I Kramer (6) 2020 1,156 144 24 6,085 289 7,698 468
  2019
L Marwick (7) 2020 1,896 939 256 136 16,615 571 20,413 1,241
  2019
S Ntuli 2020 5,202 3,851 728 95 1,387 26,942 38,205 2,322
  2019 4,607 2,871 631 36 343 21,041 7,526 37,055 2,565
ME Sanz Perez (8) 2020 2,353 1,763 514 300 1,809 6,739 410
  2019 4,481 3,184 958 169 68 20,567 26,447 55,874 3,868
TR Sibisi 2020 4,484 3,518 1,000 258 58 20,802 30,120 1,831
  2019 4,944 2,337 910 158 61 19,638 22,713 50,761 3,514
Total prescribed officers 2020 24,838 38,925 3,210 1,514 8,649 167,105 860 245,101 14,900
  2019 22,221 31,871 3,001 2,405 627 6,282 148,078 124,827 19,356 358,668 24,830
  1. (1) Salary denominated in USD/AUD for global roles and responsibilities converted to ZAR on payment date.
  2. (2) Other benefits include health care, group personal accident, disability, funeral cover, accommodation allowance, pension allowance, airfare and surplus leave encashed. Surplus leave days accrued are automatically encashed unless work requirements allow for carry over.
  3. (3) The fair value of the DSP comprises a cash bonus and share awards for the year ended 31 December 2020. The cash bonus is payable in February 2021 and the share awards are allocated in February 2021. Shares vest over a five-year period in equal tranches.
  4. (4) KPM Dushnisky received the cash portion only for 2020 due to his resignation, aligned to the standard terms and conditions of termination.
  5. (5) KC Ramon was appointed as Interim CEO effective 1 September 2020. Included in the DSP award is the DSP cash bonus and share award for 2020 calculated on the CFO role for 8 months only. Other payments reflect the acting allowance paid and the DSP cash bonus and share award for the acting period of 4 months calculated on the CEO target bonus opportunity.
  6. (6)I Kramer was appointed as Interim CFO and prescribed officer effective 1 September 2020. All salary payments including, pension and other benefits were pro-rated and aligned to the appointment date. Included in the DSP award is the DSP cash bonus and share award for the full year of 2020 (DSP award was not pro-rated. It was calculated based on his normal Senior Vice President salary plus four months acting allowance on the Senior Vice President target bonus opportunity). Other payments reflect the acting allowance for the acting period from 1 September to 31 December 2020.
  7. (7) L Marwick was appointed as prescribed officer and Interim Company Secretary effective 1 July 2020. All salary payments including, pension and other benefits were pro-rated and aligned to the appointment date. Included in the DSP award is the DSP cash bonus and share award for the full year of 2020 (DSP award was not pro-rated. It was calculated based on the prescribed officer target bonus opportunity for the full year aligned to the standard conditions of employment). Other benefits reflect the acting allowance for the acting period in the Company Secretary role from 1 July 2020 to 10 January 2021.
  8. (8) ME Sanz Perez resigned from Company Secretary effective 30 June 2020. All salary payments including, pension and other benefits are pro-rated in accordance with the resignation date.
  9. (9) Convenience conversion to USD at the year-to-date average exchange rate of $1: R16.4506 (2019: $1: R14.445).
Total cash equivalent received reconciliation
Awards earned during the period reflected but not yet settled BSP, CIP and LTIP share awards settled Sign-on cash settled Sign-on shares settled
Single total figure remuneration (1)DSP awards CSLTIP awards Sign-on awards granted DSP 2019 cash portion settled (2)Grant fair value (2)Market movement since grant date (2)Vesting fair value (2)Grant fair value (2)Currency movement since grant date (2)Settlement fair value (2)Grant fair value (2)Market movement since grant date (2)Vesting fair value Total cash equivalent received reconciliation
ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 ZAR '000 (9)USD '000

Executive directors

                                 
KPM Dushnisky(3) 2020 54,491 (25,796) 9,177 2,770 1,810 4,579 14,680 (245) 14,435 10,094 18,379 28,473 85,359 5,189
  2019 90,544 (61,842) 7,119 17,616 (1,010) 16,606 20,188 18,357 38,545 90,972 6,298
KC Ramon(5) 2020 51,621 (38,137) 9,214 22,804 24,878 47,682 70,380 4,278
  2019 73,631 (29,135) (33,064) 8,378 21,504 2,849 24,353 44,163 3,057
Total executive directors 2020 106,112 (63,933) 18,391 25,574 26,688 52,261 14,680 (245) 14,435 10,094 18,379 28,473 155,739 9,467
  2019 164,175 (90,977) (33,064) 15,497 21,504 2,849 24,353 17,616 (1,010) 16,606 20,188 18,357 38,545 135,135 9,355

Prescribed officers

                             
SD Bailey 2020 33,207 (24,103) 5,473 4,960 5,278 10,237 24,814 1,508
  2019 31,640 (18,087) (5,917) 2,613 4,066 724 4,789 15,038 1,041
PD Chenard 2020 20,559 (8,554) 5,557 3,165 3,165 6,513 9,012 15,525 36,252 2,204
  2019 47,550 (18,362) (16,191) 12,997 900
GJ Ehm 2020 43,973 (32,108) 8,612 20,969 21,781 42,750 63,227 3,843
  2019 68,492 (25,329) (33,064) 7,113 19,622 (198) 19,424 36,636 2,536
L Eybers 2020 44,187 (31,896) 8,518 19,688 21,295 40,983 61,792 3,756
  2019 67,296 (25,054) (29,160) 6,701 7,463 2,825 10,289 30,072 2,082
I Kramer 2020 7,698 (6,085) 1,613 98
  2019  
L Marwick 2020 20,413 (16,615) 3,798 231
  2019
S Ntuli 2020 38,205 (26,942) 6,367 6,289 6,710 12,999 30,629 1,862
  2019 37,055 (21,041) (7,526) 3,269 3,956 1,046 5,002 16,759 1,160
ME Sanz Perez 2020 6,739 6,224 17,588 18,861 36,448 49,411 3,004
  2019 55,874 (20,567) (26,447) 5,864 18,839 1,460 20,299 35,023 2,425
TR Sibisi 2020 30,120 (20,802) 5,943 15,258 16,122 31,380 46,641 2,835
  2019 50,761 (19,638) (22,713) 5,495 17,709 876 18,585 32,490 2,249
Total prescribed officers 2020 245,101 (167,105) 46,694 84,752 90,047 174,797 3,165 3,165 6,513 9,012 15,525 318,177 19,341
  2019 358,668 (148,078) (124,827) (16,191) 31,055 71,655 6,733 78,388 179,015 12,393
  1. (1) The fair value of the DSP comprises a cash bonus and share awards for the year ended 31 December 2020. The cash bonus is payable in February 2021 and the share awards are allocated in February 2021. Shares vest over a 5-year period in equal tranches.
  2. (2) Reflects the sum of all the grant fair value, the sum of all the share price movements since grant to vesting date and the sum of all the vesting fair value for the vested DSP 2019, vested CSLTIP 2017, vested BSP 2018, vested CIP 2018 and vested sign-on share awards and difference in the currency movements for the vested sign-on cash settled award.
  3. (3) KPM Dushnisky’s cash portion of the DSP 2019 award was reduced by USD800,000. This is in lieu of the sign-on bonus which Mr Dushnisky voluntarily repaid after his former employer paid him a discretionary cash incentive for the same period.
  4. (4) Convenience conversion to USD at the year-to-date average exchange rate of $1: R16.4506 (2019: $1: R14.445).

Details of the share incentive scheme awards follow below.

Number of unvested awards and movement during the reporting period

Sign-on share awards   Balance at 1 January Granted Vested, deemed settled Forfeited / lapsed Balance at 31 December (1)Fair value of granted awards (2)Fair value of vested awards (3)Fair value of unvested awards at 31 December
  ZAR '000 ZAR '000 ZAR '000

Executive directors

             
KPM Dushnisky 2020 175,878 87,939 87,939 28,473 30,121
  2019 351,755 175,877 175,878 38,545 55,665
Total executive directors 2020 175,878 87,939 87,939 28,473 30,121
  2019 351,755 175,877 175,878 38,545 55,665

Prescribed officers

             
PD Chenard 2020 64,951 32,475 32,476 15,525 11,124
  2019 64,951 64,951 13,026 20,557
Total prescribed officers 2020 64,951 32,475 32,476 15,525 11,124
  2019 64,951 64,951 13,026 20,557
Total sign-on share awards 2020 240,829 120,414 120,415 43,998 41,245
  2019 351,755 64,951 175,877 240,829 13,026 38,545 76,222
  1. (1) The fair value of granted awards represents the value of awards, calculated using a five business day volume weighted average share price prior to grant date. The share awards were granted on start date and will vest over a 2 year period in equal tranches in accordance with the JSE Listing requirements.
  2. (2) The fair value of KPM Dushnisky’s vested awards represents the value received on settlement date, 26 February 2020. The fair value of PD Chenard’s vested awards represents the value received on settlement date, 12 May 2020.
  3. (3) The fair value of unvested awards is calculated using the closing share price as at 31 December.
DSP awards   Balance at 1 January Granted Vested, deemed settled Forfeited / lapsed Balance at 31 December (1)Fair value of granted awards (2)Fair value of vested awards (3)Fair value of unvested awards at 31 December
  ZAR '000 ZAR '000 ZAR '000

Executive directors

               
KPM Dushnisky 2020 67,742 128,719 13,548 182,913 41,959 4,579 62,651
  2019 67,742 67,742 13,848 21,440
KC Ramon 2020 89,782 62,595 17,956   134,421 20,404 6,069 46,042
  2019 89,782 89,782 18,353 28,416
Total executive directors 2020 157,524 191,314 31,504 317,334 62,363 10,648 108,693
  2019 157,524 157,524 32,201 49,856

Prescribed officers

             
SD Bailey 2020 19,196 39,635 6,398 52,433 12,920 2,163 17,959
  2019 19,196 19,196 3,924 6,076
PD Chenard 2020 40,251 40,251 13,121 13,787
  2019
GJ Ehm 2020 82,037 54,574 16,407 120,204 17,789 5,546 41,172
  2019 82,037 82,037 16,770 25,965
L Eybers 2020 77,380 53,982 15,476 115,886 17,597 5,231 39,693
  2019 77,380 77,380 15,818 24,491
I Kramer (5) 2020 7,759 9,012 3,879 12,892 2,938 1,311 4,416
  2019
L Marwick (5) 2020 6,170 8,397 3,085 11,482 2,737 1,043 3,933
  2019
S Ntuli 2020 24,006 46,110 8,002 62,114 15,030 2,705 21,275
  2019 24,006 24,006 4,907 7,598
ME Sanz Perez (4) 2020 67,712 45,068 13,542 99,238 14,691 4,577
  2019 67,712 67,712 13,842 21,431
TR Sibisi 2020 63,424 43,035 12,684 93,775 14,028 4,287 32,120
  2019 63,424 63,424 12,965 20,074
Total prescribed officers 2020 347,684 340,064 79,473 99,238 509,037 110,851 26,863 174,355
  2019 333,755 333,755 68,226 105,635
Other management (6) 2020 1,094,152 645,154 403,017 56,337 1,279,952 210,300 136,220 438,408
  2019 1,177,912 14,623 55,208 1,108,081 240,788 4,269 350,708
Total DSP awards 2020 1,599,360 1,176,532 513,994 155,575 2,106,323 383,514 173,731 721,456
  2019 1,669,191 14,623 55,208 1,599,360 341,215 4,269 506,199
  1. (1) The fair value of granted awards represents the value of awards, calculated using a five business day volume weighted average share price prior to grant date, 25 February 2020.
  2. (2) The fair value of vested awards represents the value deemed received on settlement date.
  3. (3) The fair value of unvested awards is calculated using the closing share price as at 31 December.
  4. (4) Share awards lapsed due to resignation.
  5. (5) Opening balances were included as part of Other management.
  6. (6) The 2019 awards include awards for Mr Charles Carter, Mr David Noko and Mr Chris Sheppard who retired in 2019.
BSP awards (Closed scheme)   Balance at 1 January Granted Vested, deemed settled Forfeited / lapsed Balance at 31 December Fair value of granted awards (1)Fair value of vested awards Fair value of unvested awards at 31 December
ZAR '000 ZAR '000 ZAR '000

Executive directors

               
KPM Dushnisky 2020
  2019
KC Ramon 2020 27,817 27,817 9,402
  2019 77,073 49,256 27,817 10,034 8,804
Total executive directors 2020 27,817 27,817 9,402
  2019 77,073 49,256 27,817 10,034 8,804

Prescribed officers

               
SD Bailey 2020 8,306 8,306   2,807
  2019 22,549 14,243 8,306 2,903 2,629
PD Chenard 2020
  2019
GJ Ehm 2020 22,997 22,997 7,773  
  2019 62,783 39,786 22,997 8,109 7,279
L Eybers 2020 22,288 22,288 7,533
  2019 53,626 31,338 22,288 6,419 7,054
I Kramer (2) 2020 3,716 3,716 1,256
  2019
L Marwick (2) 2020 3,577 3,577 1,209
  2019
S Ntuli 2020 10,637 10,637 3,595
  2019 28,221 17,584 10,637 3,587 3,367
ME Sanz Perez 2020 19,072 19,072 6,446
  2019 52,842 33,770 19,072 6,879 6,036
TR Sibisi 2020 17,705 17,705 5,984
  2019 47,221 29,516 17,705 6,021 5,604
Total prescribed officers 2020 108,298 108,298 36,603
  2019 267,242 166,237 101,005 33,918 31,969
Other management (3) 2020 809,659 809,659 273,665
  2019 2,658,138 1,745,206 95,980 816,952 352,024 258,565
Total BSP awards 2020 945,774 945,774 319,670
  2019 3,002,453 1,960,699 95,980 945,774 395,976 299,338
  1. (1) The fair value of vested awards represents the value deemed received on settlement date. This is the final vesting for this scheme as it is closed.
  2. (2) Opening balances were included as part of Other management.
  3. (3) The 2019 awards include awards for Mr Charles Carter, Mr David Noko and Mr Chris Sheppard who retired in 2019.
CIP awards (Closed scheme)   Balance at 1 January Granted Matched Forfeited / lapsed Balance at 31 December Fair value of granted awards (1)Fair value of matched awards Fair value of unvested awards at 31 December
ZAR '000 ZAR '000 ZAR '000

Executive directors

               
KPM Dushnisky 2020
  2019
KC Ramon 2020 8,475 8,475 2,780
  2019 23,270 14,795 8,475 3,004 2,682
Total executive directors 2020 8,475 8,475 2,780
  2019 23,270 14,795 8,475 3,004 2,682

Prescribed officers

                 
SD Bailey 2020
  2019
CE Carter 2020
  2019 949 949 175
PD Chenard 2020
  2019
GJ Ehm 2020
  2019 16,500 16,500
L Eybers 2020 6,590 6,590 2,264
  2019 16,788 10,198 6,590 1,983 2,086
I Kramer 2020
  2019
L Marwick 2020
  2019
DC Noko 2020
  2019 15,370 15,370 2,974
S Ntuli 2020
  2019
ME Sanz Perez 2020 5,742 5,742 1,883
  2019 16,039 10,297 5,742 2,104 1,817
CB Sheppard 2020
  2019 14,358 14,358 2,855
TR Sibisi 2020 3,120 3,120 891
  2019 9,304 6,184 3,120 1,249 987
Total prescribed officers 2020 15,452 15,452 5,038
  2019 89,308 57,356 16,500 15,452 11,340 4,890
Other management 2020
  2019
Total CIP awards 2020 23,927 23,927 7,818
  2019 112,578 72,151 16,500 23,927 14,344 7,572
  1. (1) The fair value of matched awards represents the value received on settlement dates. This is the final vesting for this scheme as it is closed.
LTIP awards (Closed scheme)   Balance at 1 January Granted Vested, deemed settled Forfeited / lapsed Balance at 31 December Fair value of granted awards (1)Fair value of vested awards Fair value of unvested awards at 31 December
  ZAR '000 ZAR '000 ZAR '000

Executive directors

               
KPM Dushnisky 2020
  2019
KC Ramon 2020 110,595 104,468 6,127 29,431
  2019 230,595 56,760 63,240 110,595 11,315 35,003
Total executive directors 2020 110,595 104,468 6,127 29,431
  2019 230,595 56,760 63,240 110,595 11,315 35,003

Prescribed officers

             
SD Bailey 2020 19,793 18,696 1,097 5,267
  2019 39,793 9,460 10,540 19,793 1,886 6,264
PD Chenard 2020
  2019
GJ Ehm 2020 110,595 104,468 6,127 29,431
  2019 230,595 56,760 63,240 110,595 11,315 35,003
L Eybers 2020 97,535 92,131 5,404 25,955
  2019 117,535 9,460 10,540 97,535 1,886 30,870
I Kramer (2) 2020 10,143 9,581 562 2,661
  2019
L Marwick (2) 2020 7,749 7,319 430 2,033
  2019
S Ntuli 2020 25,173 23,778 1,395 6,699
  2019 40,173 7,095 7,905 25,173 1,414 7,967
ME Sanz Perez 2020 88,463 83,562 4,901 23,541
  2019 208,463 56,760 63,240 88,463 11,315 27,999
TR Sibisi 2020 75,971 71,762 4,209 20,217
  2019 195,971 56,760 63,240 75,971 11,315 24,045
Total prescribed officers 2020 435,422 411,297 24,125 115,804
  2019 832,530 196,295 218,705 417,530 39,131 132,148
Other management (3) 2020 934,545 882,734 51,811 245,197
  2019 2,752,636 776,383 1,023,816 952,437 154,723 301,446
Total LTIP awards 2020 1,480,562 1,398,499 82,063 390,432
  2019 3,815,761 1,029,438 1,305,761 1,480,562 205,169 468,597
  1. (1) The fair value of vested awards represents the value deemed received on settlement date. This is the final vesting for this scheme as it is closed.
  2. (2) Opening balances were included as part of Other management.
  3. (3) The 2019 awards include awards for Mr Charles Carter, Mr David Noko and Mr Chris Sheppard who retired in 2019.

Minimum shareholding requirements

For the purposes of the MSR calculation, only fully owned and vested awards will count towards the determination of the MSR

Executive Six-year target achievement date MSR holding as at 31 December 2020 as a percentage of net base pay Three-year MSR target achievement percentage Six-year MSR target achievement percentage

Executive directors

     
KPM Dushnisky (1) 141% 150% 300%
KC Ramon March 2021 553% 125% 250%

Prescribed officers

     
SD Bailey January 2025 115% 100% 200%
PD Chenard (2) 119% 100% 200%
GJ Ehm March 2019 279% 100% 200%
L Eybers March 2023 291% 100% 200%
I Kramer (3) September 2026 27% 100% 200%
L Marwick (4) July 2026 78% 100% 200%
S Ntuli January 2025 95% 100% 200%
TR Sibisi March 2022 282% 100% 200%
  1. (1) Resigned as director with his last day being 28 February 2021. MSR holding not required.
  2. (2) Retired prescribed officer with effect from 31 January 2021. MSR holding not required.
  3. (3) Appointed prescribed officer with effect from 1 September 2020; the three-year MSR achievement is due in September 2023.
  4. (4) Appointed prescribed officer with effect from 1 July 2020; the three-year MSR achievement is due in July 2023.

2020 DSP performance outcomes

The DSP measures resulted in an achievement of 116.57%.

The table below summarises AngloGold Ashanti’s remuneration metrics, their weightings, and performance against these metrics applicable to the DSP during 2020:

DSP performance measure Weighting Threshold measures Target measures Stretch measures Actual achievement 2020 achievement %
Financial measures Relative total shareholder return (measured in US$) 10.00% Median TSR of comparators Halfway between median and upper quartile Upper quartile comparators *133.67% 15.00%
Absolute total shareholder return (measured in US$) 10.00% US$ COE US$ COE + 2% US$ COE + 6% 133.67% 15.00%
Normalised cash return on equity (nCROE) 15.00% US$ COE US$ COE + 2% US$ COE + 6% 24.50% 22.50%
Production 12.50% 2,941oz (000) 3,062oz (000) 3,182oz (000) 3,047oz (000) 11.76%
All-in-sustaining costs 15.00% US$1,101/oz US$1,071/oz US$ 1,041/oz US$1,059/oz 18.17%
Future optionality Ore Reserve additions (pre-depletion, asset sales, mergers and acquisitions) 6.25% Plus 1.2Moz Plus 2.3Moz Plus 3.5Moz 5.97Moz 9.38%
Mineral Resource (pre-depletion, asset sales, mergers and acquisitions) 6.25% Plus 3.5Moz Plus 7.0Moz Plus 10.5Moz 6.73Moz 6.01%
Safety, health, environment and community All injury frequency rate (AIFR) 4.00% ≥2.5% performance improvement (3.24) ≥5% performance improvement (3.14) ≥7.5% performance improvement (3.06) 2.39 0.00%
Major hazard management critical control percentage compliance 4.00% 92.5% critical control compliance 95% critical control compliance 97.5% critical control compliance 99.23% 6.00%
Number of critical control registers established for site-specific, material health risks (as captured in AuRisk) at each operation 1.50% 2 3 5 5 2.25%
Compliance with occupational exposure monitoring programmes for noise and dust at each operation 1.50% 50% compliance 60%
compliance
70%
compliance
88.50% 2.25%
Number of reportable environmental incidents at operating mines 3.00% 2 1 - 8 0.00%
Greenhouse gas emissions intensity at gold producing operations, measured in kg CO2e/tonne 3.00% 7.299-0.3% off base 7.277-0.6% off base 7.248-1.0% off base 7.9683 0.00%
Number of business disruptions as a result of community unrest 2.50% 5 3 1 0 3.75%
Core value: People Strategic coverage 2.00% 11 successors 13 successors 15 successors 15 successors 3.00%
Key staff retention 1.00% 85% pa 90% pa 95% pa 96.43% 1.50%
Gender diversity 2.50% 19% female representation 21% female representation 23% female representation 16.96% 0.00%
  Total 100%         116.57%

* Performance achievement in upper quartile of comparator group

The DSP measures resulted in an achievement of 122.57%. The committee applied downward discretion removing the incentive award for safety in light of the fatal accidents at the South Africa and Ghana operations. The final DSP achievement was thus 116.57%; maximum opportunity is 150%

Total remuneration outcomes – Kelvin Dushnisky

Outgoing Chief Executive Officer
  • Start date:1 September 2018
  • Notice period:12 months
  • Change in control (as described in the Remuneration Policy, “Change in control”):12 months
  • Total actual pay for Mr Dushnisky in 2020, which could result from the remuneration policy stated above, is shown in relation to target and maximum earning potential.
  • Maximum DSP cash bonus opportunity: 150%Final cash bonus results: 118.3%
  • Maximum DSP share awards opportunity: 300%Final share award results: *0%
  • Total DSP opportunity: 450% (as % of base pay)Final DSP result for 2020: 118.3%
CEO (Rm) chart

* It is to be noted that Mr Dushnisky is only eligible to receive DSP cash bonus due to his resignation. This is aligned to the rules of the DSP.

Key objectives and achievements: Outgoing CEO
Scorecard metrics Weightings Comments
Focus on safety 10%
  • Safety performance remained Priority 1 for the company. The importance of safe production underpinning strong performance was always emphasised.
  • Despite all efforts to maintain the safety of our employees, we experienced the loss of six colleagues in devastating work accidents:
    • All-injury frequency rate (AIFR) improved to 2.39 per million hours worked, down from 3.31 the year prior
    • Tracking of high-potential events occurred over the course of the year to ensure proper learnings from ‘near-miss’ safety incidents
Execute company strategy 25% Good progress on the company strategy was achieved, including concluding agreements for the sale of the Sadiola mine, the South African assets to Harmony and the appropriate decision to retain Cerro Vanguardia operation in Argentina
Meet guidance: production, costs and capital 10% Despite the challenges associated with COVID-19, which surfaced materially in late Q1, production, costs and capital expenditures were all delivered according to plan
Effective stakeholder management 20% Successful and effective engagement with all stakeholders, including host governments and communities, shareholders (large and small) and employees
Disciplined capital allocation, balance sheet, reinvestment in the business and shareholder returns 20%
  • A relentless focus on disciplined capital allocation
  • Continued debt reduction and steady improvement of the key balance sheet net debt/EBITDA metric
  • Enhancement in shareholder returns
Maintain business continuity during the COVID-19 pandemic 15% Successful implementation of effective and efficient disaster management controls to ensure the safety of employees, while trying to balance the need to resume normal activities and safeguard livelihoods
Outgoing CEO's performance incentive outcome 2020
2020 DSP performance year bonus outcome Weighting DSP Cash payment outcome
Financial performance targets    
Relative total shareholder return 10.0% 15.00%
Absolute total shareholder return 10.0% 15.00%
nCroe 15.0% 22.50%
Production 12.5% 11.76%
All-in sustaining costs ($m) 15.0% 18.17%
Ore Reserve additions pre-depletion (Moz) 6.25% 9.38%
Mineral resource additions pre-depletion (Moz) 6.25% 6.01%
Safety, health, environment and community 19.5% 14.25%
Core value: people 5.5% 4.50%
Total % for company performance: 100.0% 116.57%
    ×
Organisational performance weighting:   80.00%
    =
A - Organisational performance weighted outcome:   93.3%
Individual performance results    
Actual individual targets and strategic objectives are not disclosed in order to maintain commercial confidentiality in competitive markets.    
Individual performance weighting:   20.00%
    X
Performance rating bonus correlation:   125.00%
    =
B - DSP opportunity based on individual performance:   25.0%
Total % of cash bonus pay opportunity (A+B)   118.3%
    x
On-target total cash bonus opportunity (as % of base pay)   100.00%
On-target total deferred share award opportunity (as % of base pay) (1)   0%
    =
Final cash bonus result (as % of base pay)   118.3%
Final deferred share award result (as % of base pay)   0%
Base pay as at December 2020 (all offshore payments converted to ZAR at exchange rate of ZAR16.4506: USD1   x
    21,813,496
    =
Annual cash portion of DSP:   25,795,767
Annual deferred share portion of DSP (to vest over five years) (1)  
Total 2020 deferred share plan award:   25,795,767
  1. (1) It is to be noted that Mr Dushnisky is only eligible to receive DSP cash bonus due to his resignation. This is aligned with the rules of the DSP.

Total remuneration outcomes – Christine Ramon

(a) Chief Financial Officer – eight months
  • Start date:1 October 2014
  • Notice period:6 months
  • Change in control (as described in the Remuneration Policy, “Change in control”):6 months
  • Total actual pay for Ms Ramon in 2020, which could result from the remuneration policy stated above, is shown in relation to target and maximum earning potential.
  • Maximum DSP cash bonus opportunity: 127.5%Final cash bonus results: 100.5%
  • Maximum DSP share awards opportunity: 277.5%Final share award results: 218.8%
  • Total DSP opportunity: 405% (as % of base pay)Final DSP result for 2020: 319.3%
CFO (Rm) chart
Key objectives and achievements 2020: CFO - eight months
Scorecard metrics Weightings Comments
Leadership and key stakeholder collaboration 25%
  • Successful engagement with all stakeholders, including analysts, shareholders, JV partners, banks, credit ratings agencies, government. Effective collaboration with leadership in operations and all functions across the group.
  • Effective and continuous influencing global ethics and accounting regulatory developments through the International Federation of Accountants. As Chairman of the listed companies’ CFO Forum in South Africa, provided input to influence fiscal policy and other regulatory matters.
Liquidity, ratings and balance sheet management 25%
  • Successful liquidity management for the Group ensuring adequate local and group facilities. Ensured that the $700m bond redemption was addressed in April 2020. Proactively engaged the RCF lenders regarding the refinancing strategy and the pre-emptive draw on the $1.4bn RCF facility to fund the bond redemption and to manage liquidity risk.
  • Successfully arranged a $1bn standby facility in April 2020 as a proactive liquidity measure to manage the COVID-related operational risk. The standby facility was well perceived by the market as it mitigated the equity issuance risk during a very challenging and uncertain time. The standby facility agreement catered for the offset of South African asset sale proceeds as well as for bond refinancing to be executed later in the year.
  • Ensured that dividend upstreaming from subsidiaries occurred on a regular basis.
  • Ensured that the net debt to EBITDA target of 1 time through the cycle was achieved ensuring effective liability management and debt reduction.
  • Proactively engaged ratings agencies to ensure that they were fully informed on the company’s strategy and proactive scenario planning to address the COVID-19 risks. The credit rating with Moody’s remains Investment Grade, and the outlook has been revised to stable. Fitch remains at Investment Grade with a stable outlook. S&P revised the outlook on their sub investment grade rating to positive.
Cost discipline and cash preservation measures 25%
  • Maintained the focus on cost discipline throughout the group and the elimination of non-essential spending. Corporate costs for 2020 were significantly reduced compared to the prior year and were contained well below budget.
  • Ensured proactive scenario planning to address cash preservation measures.
  • Ensured that adequate levels of critical spares and consumables were maintained at mine sites to mitigate the risks of delayed supplies due to COVID-19.
  • Ensured that group strategic sourcing targets were achieved.
Governance and risk management 25%
  • Maintained a strong culture of compliance
  • Ensured that COVID-19 impacts were tracked and reported separately so that this can be assessed and disclosed appropriately to the market
  • Ensured that tax risks/exposures were appropriately managed and disclosedEnsured that cyber security risks were well managed across the business
  • Ensured that cybersecurity risks were well managed across the business
  • Ensured that the group top 10 risks are proactively identified to mitigate the group’s strategic, operational and catastrophic risks
  • Ensured that appropriate hedging strategies were implemented
  • Ensured that risk processes/methodologies were simplified and consistently embedded across the business
DSP performance incentive outcome 2020: CFO – eight months
2020 DSP performance year bonus outcome Weighting DSP Cash payment outcome
Financial performance targets    
Relative total shareholder return 10.0% 15.00%
Absolute total shareholder return 10.0% 15.00%
nCroe 15.0% 22.50%
Production 12.5% 11.76%
All-in sustaining costs ($m) 15.0% 18.17%
Ore Reserve additions pre-depletion (Moz) 6.25% 9.38%
Mineral resource additions pre-depletion (Moz) 6.25% 6.01%
Safety, health, environment and community 19.5% 14.25%
Core value: people 5.5% 4.50%
Total % for company performance: 100.0% 116.57%
    ×
Organisational performance weighting:   80.00%
    =
A - Organisational performance weighted outcome:   93.3%
Individual performance results    
Actual individual targets and strategic objectives are not disclosed in order to maintain commercial confidentiality in competitive markets.    
Individual performance weighting:   20.00%
    X
Performance rating bonus correlation:   125.00%
    =
B - DSP opportunity based on individual performance:   25.0%
Total % of cash bonus pay opportunity (A+B)   118.3%
    x
On-target total cash bonus opportunity (as % of base pay)   85.00%
On-target total deferred share award opportunity (as % of base pay)   185.00%
    =
Final cash bonus result (as % of base pay)   100.5%
Final deferred share award result (as % of base pay)   218.8%
Base pay for eight months as at December 2020 (all offshore payments converted to ZAR at exchange rate of ZAR 16.4506: USD1   x
    7,048,929
    =
Annual cash portion of DSP:   7,085,419
Annual deferred share portion of DSP (to vest over five years)   15,421,202
Total 2020 deferred share plan award:   22,506,621

(b) Interim Chief Executive Officer – four months

  • Total actual pay for Ms Ramon in 2020, which could result from the remuneration policy stated above, is shown in relation to target and maximum earning potential.
  • Maximum DSP cash bonus opportunity: 150%Final cash bonus results: 118.3%
  • Maximum DSP share awards opportunity: 300%Final share award results: 236.6%
  • Total DSP opportunity: 450% (as % of base pay)Final DSP result for 2020: 354.9%
Interim CEO (Rm) chart
Key objectives and achievements 2020: Interim CEO – four months
Scorecard metrics Weightings Comments
Focus on safety 10%
  • Maintained a strong culture of safety across the Company’s operations.
  • AIFR improved by 28% to an all-time low of 2.39 injuries per million hours worked (including South Africa for nine months).
  • AIFR improved by 21% to 1.68 injuries per million hours worked (excluding South Africa).
Execute company strategy 25%
  • Focused on team cohesion and organisational alignment to proactively manage risks and advance the Company's strategy.
  • Obuasi Phase 1 completed and Phase 2 on track.
  • Siguiri recovery project completed with a steady improvement in recoveries.
  • Achieved commercial production at Boston Shaker underground at Tropicana at the end of September 2020.
  • Gramalote and Quebradona feasibility studies on track.
  • Streamlined the portfolio by exiting from two operational jurisdictions by closing the:
    • Sale of the South African assets on 30 September 2020, ensuring that an unconditional Section 11 approval was received.
    • Morila and Sadiola sale processes.
  • Advanced ore reserve development and progressed reserve confidence supporting the issuance of longer-term guidance to the market.
  • Actively involved in the Tanzanian discussions to recover the outstanding VAT receivable.
  • Maintained regular discussions with Barrick regarding the free cash flow conversion challenges in the DRC.
  • Established a clear action plan to maximise the value of the Company.
Meet guidance: production, costs and capital 10%
  • Guidance reinstated in October 2020 provided greater market certainty on annual production, costs and capital expenditure.
  • Met guidance for the eight-consecutive year despite COVID-19 impacts.
  • Maintained cost discipline, limiting year on year inflation.
Effective stakeholder management 20%
  • Ensured active engagement with investors, government stakeholders and employees.
  • Maintained good relationships with our JV partners to ensure that the Company’s interests are advanced.
  • Represented AngloGold Ashanti at the World Gold Council and ICMM. Ensured that relevant input was submitted in developing the industry regulatory frameworks and standards.
  • Enhanced board reporting and ensured that the board was kept abreast of material developments.
  • Conducted operational site visits to ensure visible leadership at the operations.
  • Connected and maintained engagement with the organisation through regular communication briefs, virtual corporate and regional townhall sessions to communicate the progress on the Company’s strategy and to maintain visible leadership presence.
Disciplined capital allocation: balance sheet, reinvestment in the business and shareholder returns 10%
  • Improved balance sheet flexibility and ensured that the liquidity risk was proactively managed.
  • The South Africa asset sale proceeds of $200m were applied to debt reduction.
  • Free cash flow generation increased five-fold to $743m and helped drive net debt down to $0.6bn, the lowest level since 2011. Net debt ratio declined to 0.24 times well below the target level of 1 times.
  • Continued the focus on extending mine lives and improving operating flexibility through exploration.
  • Ore Reserve increased by 6.1Moz on a gross basis and production life was extended to 11 years from nine years.
  • Progressed Tropicana – Havana Stage 2, Sunrise Dam exploration opportunities, Iduapriem cutback/TSF feasibility study and ongoing brownfield developments across portfolio to enable life extensions.
  • Received permits for Geita Hill UG, Siguiri Block and the Nyamulilima open pit and these reinvestment opportunities are being progressed.
  • Progressing greenfields opportunities in the United States, Brazil and Australia.
  • Revised dividend policy to double dividend pay-out ratio from 10% to 20% of free cash flow generation considering the long-term capital requirements of the company.
The bond refinancing process 10% Successfully led the refinancing of the new $700m bond in October 2020 at a 3.75% pa coupon, the lowest coupon in AngloGold Ashanti’s history.
Maintain business continuity, safely and responsibly navigating the COVID-19 pandemic 10%
  • Ensured that the COVID-19 pandemic has been managed safely and in a responsible manner across our operations and within our host communities. Our focus has remained on employee health, wellbeing and safety throughout.
  • Ensured that we actively monitor developments on vaccine strategy and ensured that guidelines were issued to the operations. Our teams continued to engage with business forums and national authorities across our operational jurisdictions.
DSP performance incentive outcome 2020: Interim CEO – four months
2020 DSP performance year bonus outcome Weighting DSP Cash payment outcome
Financial performance targets    
Relative total shareholder return 10.0% 15.00%
Absolute total shareholder return 10.0% 15.00%
nCroe 15.0% 22.50%
Production 12.5% 11.76%
All-in sustaining costs ($m) 15.0% 18.17%
Ore Reserve additions pre-depletion (Moz) 6.25% 9.38%
Mineral Resource additions pre-depletion (Moz) 6.25% 6.01%
Safety, health, environment and community 19.5% 14.25%
Core value: people 5.5% 4.50%
Total % for company performance: 100.0% 116.57%
    ×
Organisational performance weighting:   80.00%
    =
A - Organisational performance weighted outcome:   93.3%
Individual performance results    
Actual individual targets and strategic objectives are not disclosed in order to maintain commercial confidentiality in competitive markets.    
Individual performance weighting:   20.00%
    X
Performance rating bonus correlation:   125.00%
    =
B - DSP opportunity based on individual performance:   25.0%
Total % of cash bonus pay opportunity (A+B)   118.3%
    x
On-target total cash bonus opportunity (as % of base pay)   100%
On-target total deferred share award opportunity (as % of base pay)   200%
    =
Final cash bonus result (as % of base pay)   118.3%
Final deferred share award result (as % of base pay)   236.6%
Base pay for four months as at December 2020 (all offshore payments converted to ZAR at exchange rate of ZAR 16.4506: USD1   x
    4,405,570
    =
Annual cash portion of DSP:   5,209,840
Annual deferred share portion of DSP (to vest over five years)   10,419,679
Total 2020 deferred share plan award:   15,629,519

Non-executive directors’ fees and allowances audit complete

The board elected not to take an increase in 2020, given the COVID-19 pandemic. Non-executive directors have not received an increase in their fees since 2014. Note that while the fees have not changed, the absolute figures will vary according to the number of meetings held in a particular year.

The table below details the fees payable to non-executive directors in accordance with the company’s shareholder approved policy together with allowances paid in the year. It is to be noted that certain of the non-executive directors either waived an element of their fees or donated part of their fees to the South African Solidarity Fund or associated funds, and as such the table does not reflect the fees that were actually paid or received by these non-executive directors.

Director fees Committee fees Travel allowance Total Total
  2020 2019 2018
M Ramos (Chairperson) 130,500 71,875 202,375 106,750
R Gasant (Lead independent director) 150,500 72,000 222,500 193,250 229,500
K Busia (1) 63,500 28,500 11,250 103,250
AM Ferguson 130,500 59,000 7,500 197,000 216,500 52,500
AH Garner 130,500 35,500 7,500 173,500 195,500 200,000
NP January-Bardill (2) 33,500 16,625 50,125 185,7 197,500
N Magubane (3) 130,500 40,000 170,500
MDC Richter 130,500 67,000 11,250 208,750 230,250 235,250
RJ Ruston (2) 33,500 13,125 10,000 56,625 218,250 260,750
JE Tilk 130,500 67,875 7,500 205,875 230,500
SM Pityana (4) 329,000 77,250 406,250 386,750 441,000
Total 1,393,000 548,750 55,000 1,996,750 1,963,500 1,616,500
  1. (1) Director joined on 1 August 2020
  2. (2) Directors retired effective 6 May 2020
  3. (3) Director joined on 1 January 2020
  4. (4) Director resigned effective 7 December 2020

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures and the outcome and consequence of any potential or pending litigation or regulatory proceedings or environmental health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition.

These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will prove to have been correct.

Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social and political and market conditions, the success of business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, any supply chain disruptions, any public health crises, pandemics or epidemics (including the COVID-19 pandemic), and other business and operational risks and other factors. For a discussion of such risk factors, refer to AngloGold Ashanti’s annual report on Form 20-F has each been filed with the United States Securities and Exchange Commission (SEC). These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements.

AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.

Disclaimer
The summary information of the Mineral Resource and Ore Reserve in this report is based on information signed off by Mr VA Chamberlain, a Competent Person who is a full-time employee of AngloGold Ashanti Ltd. Mr VA Chamberlain consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. AngloGold Ashanti confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resource or Ore Reserve, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.