Bonuses

Glucode’s financial year (FY) runs from the 1st of July to the 30th of June in the following year. This also means that our reporting on financial performance is based on this timeframe.

Reviewed Annually: October / November (or as required following changes to the BCEA earnings threshold or other relevant legislation).

Applicable To: All full-time permanent employees of Glucode (excluding executive directors and the leadership team, who are covered by a separate incentive scheme).
This scheme does not apply to fixed-term, part-time, casual, temporary, or other non-full-time permanent employees.

Purpose

The purpose of this Full-Time Employee Bonus Scheme is to reward full-time permanent employees for their sustained contributions to Glucode’s overall performance over the full financial year (July-June) and to support the retention of high-performing, long-term individuals in ongoing roles.

Glucode operates within a July to June financial year (FY), and any bonus decisions are based on financial and performance outcomes within this period. All bonuses under this scheme are entirely discretionary.

Types of Bonuses

Bonuses are calculated using the employee’s monthly salary as at the last day of the financial year under review.

Glucode may award the following types of bonuses at its sole discretion:

First Bonus

If the company does not make a loss during the financial year under review, Glucode may, at its sole discretion, award a bonus of up to one month’s salary to eligible employees.

Any such award is subject to final approval by REMCO and the company’s overall financial position, operational needs, strategic investments, or other business considerations.

If awarded, this bonus will be payable with the November payroll (or such other date as determined by Glucode based on cash flow and operational requirements).

Second Bonus

If Glucode meets all the profit targets set for the financial year, Glucode may, at its sole discretion, award an additional bonus of up to one month’s salary to eligible employees.

Any such award is subject to final approval by REMCO and the company’s overall financial position, operational needs, strategic investments, or other business considerations.

If awarded, this bonus will be paid according to the following schedule (or such adjusted schedule as determined by Glucode based on cash flow and operational requirements):

Month	% Paid out
January	25%
May	75%

Success

We pay the second bonus out on a schedule as a retention strategy and to manage cash flow.

Discretionary bonuses

Discretionary bonuses may be awarded to recognise extraordinary contributions that exceed normal job expectations. These bonuses are not guaranteed and are granted at the sole discretion of Leadership and REMCO.

Principles and Considerations for Discretionary Bonuses:

Discretionary bonuses serve as a flexible reward mechanism to recognise and motivate team members who go above and beyond in ways that directly benefit the business. These are not tied to routine performance but reflect contributions exceeding usual responsibilities, including:

• Extraordinary efforts beyond role responsibilities (e.g., unexpected initiatives aligned with strategic goals).
• Demonstrated tangible or intangible business value (e.g., financial benefits, efficiency improvements, customer satisfaction).
• Retention of key talent where skills, knowledge, or relationships are critical.

Process for Discretionary Bonus Motivations

Heads of Department must submit written motivations for each eligible team member via BambooHR. Motivations must be:

• Factual, concise, and supported by specific examples from the financial year under review (July-June).
• Avoid generic or subjective statements.

All team members must be reviewed for fairness. Final decisions rest with REMCO.

A discretionary bonus may be awarded at any amount deemed appropriate and is not required to match one month’s salary. Payment timing (if awarded) will be determined by Glucode based on cash flow and operational requirements.

Eligibility Criteria

To qualify for consideration for any bonus under this scheme (First Bonus, Second Bonus, or Discretionary Bonus), an employee must:

1. Be employed by Glucode during the financial year under review (prorated if part-year).
2. Be a full-time permanent employee (fixed-term, part-time, or other non-full-time permanent employees are not eligible, as the scheme focuses on ongoing, indefinite-duration roles aligned with full-year performance and long-term retention).
3. Not have received any formal warning during the financial year or have a valid warning at the time of bonus review (November).
4. Not have been placed on a Performance Improvement Plan (PIP) during the financial year or at the time of bonus review.
5. Have consistently met the minimum performance expectations of their role.

Employees disqualified from First or Second Bonus due to warnings or PIP may still be considered for a Discretionary Bonus if they meet the discretionary criteria.

Definitions (for Eligibility Criteria)

For clarity and consistent application:

• Valid Warning: Not have received any formal warning during the financial year or have a valid warning at the time of bonus review (November).
• Performance Improvement Plan (PIP): A formal plan documented and active during the financial year under review, or concluded within the last 6 months prior to the bonus review date (November).
• Minimum Performance Expectations: As defined in the employee’s job description and annual performance review objectives, assessed via Glucode’s performance management process.

Conditions

• Forfeiture on Termination: If an employee resigns or is terminated before a bonus payment date, they forfeit all outstanding bonus amounts, including scheduled payments.
• No Automatic Entitlement: Bonuses are not contractual entitlements and may be amended, delayed, withheld entirely, or cancelled at Glucode’s sole discretion based on financial performance, operational needs, strategic investments, economic conditions, or exceptional circumstances.
• Past Payments Do Not Create Future Expectations: Any previous award or payment of bonuses (First Bonus, Second Bonus, Discretionary Bonus, or otherwise) under this scheme or in prior years does not create any legitimate expectation, contractual right, entitlement, custom, or practice to receive bonuses in future financial years. Each year’s bonus decisions are made independently based on prevailing circumstances.
• REMCO Approval: All bonuses (or decisions not to award them) are subject to review and final approval by the Remuneration Committee (REMCO).
• Tax and Deductions: All bonuses are subject to applicable tax deductions, payroll withholding (e.g., PAYE), and statutory contributions. Bonuses under this scheme are discretionary and may not qualify as ‘remuneration’ for certain purposes under the BCEA, LRA, or other legislation (e.g., calculations for leave pay or severance).

Review and Approval Process

• Financial Performance Review: Conducted at the end of the audit cycle (around October each year).
• Leadership Motivation Submission: Department heads submit discretionary motivations by the annual deadline (typically October/November).
• REMCO Review: REMCO reviews financial results, eligibility, performance, and motivations.
• Communication: Employees are informed of outcomes via formal letters in November each year (or such other date as determined by Glucode).

Payment Process

Payment timing for any awarded bonuses is indicative only and remains subject to Glucode’s cash flow requirements, operational priorities, and sole discretion. Glucode reserves the right to adjust payment dates, schedules, or methods at any time without prior notice.

• First Bonus (if awarded): November payroll (or such other date as determined by Glucode).
• Second Bonus and Discretionary Bonus (if awarded): January (25%) and May (75%) (or such adjusted schedule as determined by Glucode).

Amendments to Policy

Glucode reserves the right to amend, suspend, or terminate this Bonus Scheme at any time based on business needs, financial results, or organisational changes. Employees will be notified of material changes via formal communication.