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Financial Sector Charter (BEE)
Investec - Financial Sector Charter Analysis
The South African Financial Sector Charter ("FSC") was released on 17 October 2003. Details pertaining to this Charter can be found at www.banking.org.za. The information below represents a summary of our FSC scorecard for the year ended 31 December 2008. Further detail on this and our BEE initiatives.
- Summary Information
- Information pertaining to the Summary scorecard
- Summary of assumed total points as reflected in the Summary scorecard
- Section 1 (paragraph 5 of the Charter)
- Section 2 (paragraph 6 & 7 of the Charter)
- Section 3 (paragraph 8 of the Charter)
- Section 4 (paragraph 9 of the Charter)
- Section 5 (paragraphs 10 & 11 of the Charter)
- Section 6 (paragraph 12 of the Charter)
Summary Information
The purpose of this summarised information is not to provide detail with respect to each section found in the FSC. For further information in this regard, please refer to the FSC.
The analysis below is a summary of Investec's positioning with respect to each category, target and threshold as found in the FSC.
Investec's positioning as at 31 December 2008 with respect to the various categories of the FSC is indicated and a scorecard summary is provided. All participants of the FSC were required to submit their second Charter Report for the calendar year ended 31 December 2008, to the Charter Council, by the end of March 2009. This analysis is based on the information that was submitted in Investec’s report and reflects the information on which we are able to comment in terms of the original FSC, any subsequent revisions and on any assumptions and definitions agreed upon by the Charter Council. Please note that the information depicted in the scorecard has been verified by KPMG according to guidelines set out by the Charter Council. The FSC only applies to Investec's South African operations.
Information pertaining to the Summary scorecard
- All references to "black" relate to the definitions as set out in the FSC.
- All information relates to the calendar year ended 31 December 2008 except for post-tax operating profit which relates to Investec’s financial year ended 31 March 2008 (as requested by the Charter Council).
Summary of assumed total points as reflected in the Summary scorecard
- Total points scored by Investec for the period to 31 December 2008: 69.9
- Total scorecard points for the period to 31 December 2007 (excluding any points from which Investec is exempt): 68.3 (the total scorecard points have been pro-rated against the 2008 targets)
- Percentage Investec scoring: 83% this translates to an A rating as per the FSC
- Copy of our 2009 rating certificate
| Indicators as set out in FSC | Threshold as set out in FSC | Target 2008 as set out in FSC | Investec Positioning at 31 December 2008 | Points scored | Comments on Investec Positioning as at 31 December 2008 | |
| Human Resource Development | 15.2 | |||||
| 1.1 Employment Equity | 12.9 | |||||
| 1.1.1 Senior management (basic salary* > R580 183 p.a.) | black people as a % of senior management | 10.0% (industry mean) | 20%-25% | 15.70% | 2.5 | Percentages are based on approximately 594 people at Investec in SA who are considered to be senior management ito salary bands as set out in the FSC. |
| black women as a % of senior management | 1.60% (industry mean) | 4% | 5.40% | 1 | Percentages are based on approximately 594 people at Investec in SA who are considered to be senior management ito salary bands as set out in the FSC. | |
| 1.1.2 Middle management (basic salary* between R322 324 and R580 183 p.a) | black people as a % of middle management | 17.0% (industry mean) | 30% | 26.80% | 3.6 | Percentages are based on approximately 736 people at Investec in SA who are considered to be middle management ito salary bands as set out in the FSC. |
| black women as a % of middle management | 5.0% (industry mean) | 10% | 14.70% | 1 | Percentages are based on approx 736 people at Investec in SA who are considered to be middle management ito salary bands as set out in the FSC. | |
| 1.1.3 Junior management (basic salary* between R193 393 and R322 324 p.a) | black people as a % of junior management | 28.0% (industry mean) | 40%-50% | 47.50% | 3.8 | Percentages are based on approximately 895 people at Investec in SA who are considered to be junior management ito salary bands as set out in the FSC. |
| black women as a % of junior management | 12.00% | 17% | 33.00% | 1 | Percentages are based on approximately 895 people at Investec in SA who are considered to be junior management ito salary bands as set out in the FSC | |
| *If the bonus is greater than of 50% of total remuneration then 50% of the bonus will be included as part of the package. | ||||||
| 1.2 Skills Development | 2.3 | |||||
| 1.2.1 Skills spend | % of payroll spent p.a. on skills development of black employees | 0% | 1.50% | 1.10% | 2.3 | Total training spend on black employees amounted to R16.2 million for 2008 |
| 1.2.2 Learnership program | Each institution will employ a % of total SA staff in the form of black matriculants as part of a learnership programme | 0% | 4.50% | 0.00% | 0 | Investec participed in the Microsoft IT Learnership. Two learners started in January 2008. |
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| Indicators as set out in FSC | Threshold as set out in FSC | Target 2008 as set out in FSC | Investec Positioning at 31 December 2008 | Points scored | Comments on Investec Positioning as at 31 December 2008 | |
| Procurement & components (a) and (b) of enterprise development | 10% | 50% | 61.80% | 15 | ||
| 2.1 Procurement | ||||||
| Procurement from BEE Companies | Targeted procurement from those companies as a percentage of total "procurement" expenditure | Total expenditure defined as procurement in terms of this section was R 1,953 million, of which R 1,379 million was spent on BEE suppliers. | ||||
| 2.2 Enterprise Development | ||||||
| Enterprise development including:1) assistance to BEE accredited companies in all sectors; and 2) supporting growth of BEE accredited broking agencies &/or enterprises in financial sector | Investec is involved in a number of initiatives in this regard, including the Business Place. Total weighted enterprise development spend amounted to R5.3 million. | |||||
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| Indicators as set out in FSC | Threshold as set out in FSC | Target 2008 as set out in FSC | Investec Positioning at 31 December 2008 | Points scored | Comments on Investec Positioning as at 31 December 2008 | |
| Access to Financial Services | 0 | |||||
| 3.1- 3.6 Providing products and services to low income households | Investec has received exemption from this section of the Charter. | |||||
| 3.7 Consumer education | % of post tax operating profits spend p.a. directed towards educating consumers on your products | 0.20% | 0.20% | 0 (below threshold) | 0 (below threshold |
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| Indicators as set out in FSC | Threshold as set out in FSC | Target 2008 as set out in FSC | Investec Positioning at 31 December 2008 | Points scored | Comments on Investec Positioning as at 31 December 2008 | |
| Empowerment Financing | 13.3 | |||||
| 4.1 Targeted Investments | Institution’s target for Targeted Investment (R) in certain areas of the economy | 17 | 8.3 | |||
| 4.2 BEE transaction financing | Institution's target for BEE transaction financing (R) | 5 | R1.2 billion | R2.6 billion | 5.0 | Investec financed BEE transactions to the value of R2.6 billion during 2008. |
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| Indicators as set out in FSC | Threshold as set out in FSC | Target 2008 as set out in FSC | Investec Positioning at 31 December 2008 | Points scored | Comments on Investec Positioning as at 31 December 2008 | |
| Ownership and Control | 23.4 | |||||
| 5.1 Ownership | 18 | |||||
| 5.1.1 Ownership | % shareholding of black shareholders in Investec Limited (SA entity only) | 2.50% | 25% | 25.10% | 18 | As detailed in the announcement on our empowerment shareholding transaction undertaken in May 2003. |
| BONUS if reach 25% DIRECT ownership | ||||||
| 5.2 Control | 5.4 | |||||
| 5.2.1 Board | Black people as a % of board of directors of Investec Limited only | 20.00% | 33% | 37.50% | 2 | There are 8 SA directors in total and 3 of them are black, including 1 black female |
| Black women as a % of board of directors of Investec Limited only | 5.00% | 11% | 12.50% | 1 | ||
| 5.2.2 Executive management | Black people as a % of executive management | 15.00% | 25% | 15.00% | 2.4 | |
| Black women as a % of executive management | 2.00% | 4% | 0.00% | 0 |
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| Indicators as set out in FSC | Threshold as set out in FSC | Target 2008 as set out in FSC | Investec Positioning at 31 December 2008 | Points scored | Comments on Investec Positioning as at 31 December 2008 | |
| Corporate Social Investment | 3 | |||||
| 6.1 Corporate Social Investment (CSI) | % of post tax operating profit directed p.a. on CSI black initiatives | 0% | 0.50% | 0.70% | 3 | Total CSI spend of R 25 million as at 31 December 2008. Total post tax operating profit as at 31 March 2008 was R 4.0 billion. |
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Interested in this information?
- Contact: The Investor Relations Team
- Phone number: +27 11 286 7070 | +44 207 597 5546
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