Code 200 – Management Control

 

CODE SERIES 200: MEASUREMENT OF THE MANAGEMENT CONTROL ELEMENT OF BROAD-BASED BLACK ECONOMIC EMPOWERMENT

 

STATEMENT 200: THE GENERAL PRINCIPLES FOR MEASURING MANAGEMENT CONTROL

 

Issued under section 9 of the Broad-Based Black Economic Empowerment Act of 2003 Arrangement of this statement

 

Para Subject

 

1                    Objectives of this statement

 

2                    Management control scorecard

 

3                    Common examples of Top Management

 

4                    Key measurement principles

 

? 5 Calculating the Adjusted Recognition for Gender

 

6 Calculating compliance

 

7 Annexe 200(A)

 

©

 

1                   Objectives of this Statement

 

The objectives of this statement are to specify:

 

1.1               the scorecard for measuring the Management Control Element of B-BBEE;

 

1.2              define the key measurement principles associated with the Management Control Element of B-BBEE; and

 

1.3              the calculations for measuring compliance.

 

2                   Management Control Scorecard

 

The followingtable represents the indicators and method for calculatinga score for Management Control under this statement:

 

Category

Management Control indicator

Weighting points

Compliance Target

2.1 Board participation::

 

2.1.1 Exercisable Voting Rights of black Board members using the Adjusted Recognition for Gender

3

50%

 

2.1.2 Black Executive Directors using the Adjusted Recognition for Gender

2

50%

2.2. Top Management:

 

2.2.1Black Senior Top Management using the Adjusted Recognition for Gender

3

40%

 

2.2.2 Black Other Top Management using the Adjusted Recognition for Gender

2

40%

2.3 Bonus points:

 

Black Independent Non-Executive Board Members

1

40%

 

 

 

3                   Common Examples of top Management

 

The inclusion of the following examples of Top Management is for guidance purposes only:

 

3.1              Senior Top Management positions include the chief executive officer, the chief operating officer, the chief financial officer and other people holding similar positions.

 

3.2              Other Top Management positions include the chief information officer, the head of marketing, the head of sales, the head of public relations, the head of transformation, the head of human resources and other people holding similar positions.

 

4                   Key Measurement Principles

 

4.1              A Measured Entity receives points by meeting the targets for participation of black people and black women at Board and Top Management level.

 

4.2              A Measured Entity must use the data in calculating its score under the Management Control scorecard used in its returns filed with the Department of Labour under the Employment Equity Act. This does not apply to Measured Entities exempt from filing such returns.

 

4.3              A Measured Entity that does not distinguish between Top Management and Senior Management may include its Senior Management under this statement. If a Measured Entity adopts this approach –

 

©

 

4.3.1         the corresponding targets for Senior Management in Code series 300 will apply to the Management Control scorecard;

 

4.3.2         Senior Management included in this statement is not measurable under statement 300.

 

4.4               If a Measured Entity does not distinguish between Senior Top Management and Other Top Management, then Top Management is measurable as a single indicator with a Weighting of 5 points under paragraphs 2.2.1 and 2.2.2.

 

4.5               If Measured Entities do appoint Non-Executive Independent Board Members, they are encouraged to appoint persons who do not serve in that capacity for any other Measured Entity.

 

5                  Calculating the Adjusted Recognition for Gender

 

The Adjusted Recognition for Gender is calculated in terms of formula “A” in Annexe 200(A).

 

6                  Calculating Compliance

 

6.1               The Management Control indicators provided for in the Management Control Scorecard must be calculated in terms of formulas “B” and “C” in Annexe 200(A).

 

6.2               If a Measured Entity gains a score for a Management Control indicator that is more than the relevant weighting points, that Enterprise will only receive the Weighting

 

points.

 

 

 

 

ANNEXE 200(A)

 

A: Calculation of the Adjusted Recognition for Gender

 

a = y + c

 

C is limited to a maximum of 50% of the target Where

 

A is the Adjusted Recognition for Gender

 

B is the percentage of employees in the measurement category that are black people C is the percentage of employees in the measurement category that are black women

 

B: Calculating Compliance

 

The calculation of the management indicators provided for in paragraphs 2.1.1, 2.1.2., 2.2.1 and 2.2.2 is as follows:

 

A = -X D

 

C is limited to a maximum of 50% of the target Where

 

A is the score for measured management indicator B is the Adjusted Recognition for Gender calculated in paragraph 5 C is the target for that measurement category as per paragraph 2 D is the Weighting for measured indicator as per paragraph 2

 

C: The calculation of the management indicator provided for in paragraph 2.3 is as follows:

 

 

 

 

Where

 

A is the score for the management indicator in paragraph 2.3 of the number of black Independent Non-Executive Board Members of the Measured Entity as a percentage of the total number of Independent Non-Executive Board Members of the Measured Entity

 

C is the target for Independent Non-Executive Board Members of the Measured Entity in paragraph 2.3

 

D is the Weighting points in paragraph 2.3

 

 

 

You may also like...