ArcelorMittal South Africa Annual Report 2009 Directors’ remuneration report for the year ended 31 December 2009 Remuneration of directors ArcelorMittal South Africa's remuneration strategy and practice for executive directors is similar to the general reward philosophy we follow for senior managers of the company. Our approach to remuneration is based on market benchmarks and best practice aligned to ArcelorMittal Group's reward philosophy. Executive directors are paid a base salary as well as a variable performance-based bonus and also participate in company's share scheme. All remuneration elements are reviewed annually in accordance with our philosophy, which is aimed at rewarding directors appropriately in accordance with market best practice and individual performance. The Remuneration Committee annually reviews every director's pay and benefits, including the bonus structure and performance parameters proposed by the company. Fee structures for remuneration of board and subcommittee members are recommended to the board by the Remuneration Committee and reviewed annually. These include market norms, practices and benchmarks, inclusive of new legislation, regulations and corporate governance guidelines. Non-executive fee structure comprises an annual fee and in addition a fee for attending and contributing to board meetings. The Chairman receives an annual fee inclusive of all board and board committee attendences. These fees are approved by the shareholders at the annual general meeting of shareholders. In terms of the company's articles of association one-third of the directors retire at the annual general meeting held each year. Retiring directors are eligible for re-election. Directors' remuneration for ArcelorMittal South Africa and its subsidiaries Notes Fees R Basic salary R Bonuses/ perform- ance- related payments R Allow- ances (note 8) R Other benefits (note 9) R Retire- ment contri- butions R Loss of office and retention contract (note 10) R Total R For the year ended 31 December 2009 Executive directors LGJJ Bonte 1 3 019 124  1 635 500 1 704 071 6 358 695 NMC Nyembezi-Heita 2 784 048  1 580 340 187 632 23 760 293 719 4 869 499 HJ Verster 1 971 935  1 211 945 19 722 23 895 164 144     3 439 087     6 830 628 Sub-total 7 775 007  4 427 785 1 911 425 47 655 457 863      3 439 087   18 058 822 Non-executive directors EK Diack 314 000 314 000 KDK Mokhele 700 000 700 000 LP Mondi 2 149 000 149 000 DCG Murray 312 000 4 078 316 078 MJN Njeke 3 277 000 277 000 ND Orleyn 282 000 282 000 Sub-total 2 034 000 4 078 2 038 078 Total 2 034 000  7 775 007  4 427 785 1 915 503 47 655 457 863      3 439 087     2 096 900 Directors' remuneration are not paid to the non-executive directors in the employment of ArcelorMittal Group.