Early indications of our exceptions
King V™'s apply-and-explain regime requires every practice not fully applied to be disclosed with its reason and compensating measure. Of 132 practices assessed, 122 are fully applied and one is not applicable. The remaining 10 are consolidated below by theme. The journey from King IV™ to King V™ is still in progress.
P5 – Composition
Exception theme
There is no formally designated Lead Independent Director. All Non-Executive Directors are independent by statutory appointment under the NSSF Act, so the voluntary-Board LID concept does not map onto this structure.
Compensating measure
The Chairman fulfils the coordinating and independent-oversight role associated with a LID; all Non-Executive Directors have direct access to the Corporation Secretary.
Target
N/A (Our Board composition is statutory, so we align by the law).
P6 – Committees (Nominations)
Exception theme
No standalone Nominations Committee. Director appointments are the statutory prerogative of the Minister on nomination by employer federations, workers' unions, and Government.
Compensating measure
SACA oversees succession planning; the Board Charter sets competence and independence criteria.
Target
N/A
P6 – Committees (Social & Ethics)
Exception theme
No standalone Social and Ethics Committee. Ethics, social, environmental and stakeholder matters are distributed across ARC, SACA and IPMC.
Compensating measure
ARC (ethics/compliance), SACA (stakeholder/social) and IPMC (responsible investment) together discharge the SEC mandate; the annual Sustainability Report is reviewed by SACA and the Board.
Target
–
P11 – Remuneration
Exception theme
Malus and clawback provisions are not applicable.
Compensating measure
Bonus and incentive payments are subject to the appointing Minister’s review and approval.
Target
Malus and clawback clauses do not apply to the Fund.
P12 – Assurance
Exception theme
Independent external assurance over the ESG/Sustainability Report has not yet been obtained; the report is prepared internally and reviewed by SACA and the Board.
Compensating measure
Internal Audit provides limited assurance over ESG data collection; management attestations accompany the Sustainability Report; external assurance is in the FY2026/27 improvement plan.
Target
Evolve per the improvement plan.
P13 – Stakeholders (not applicable)
Exception theme
Group governance arrangements between a holding entity and subsidiaries – not applicable, as NSSF is a standalone statutory fund with no subsidiary or group structure.
Compensating measure
Not required.
Target
N/A