Governance and risk
Directors' Report
Financial statements
Assurance statements
Security holder information
Introduction Business performance Stakeholders Sustainability
Contents
Executive remuneration mix The remuneration mix is designed to achieve a balanced reward for achievement of short-term objectives and the creation of long-term sustainable value. The amount of remuneration received by Executive KMP each year depends on the achievement of business and individual performance. Fixed remuneration (TEC) was set with reference to the market median, using the ASX30 companies as the primary reference. Remuneration packages (including TEC levels) are reviewed by the Remuneration, People and Culture Committee taking into consideration an individual’s role, experience and performance, as well as relevant comparative market data provided by remuneration consultants. TEC levels are also reviewed after a change in role. The following diagrams show the minimum, target and maximum total remuneration opportunity for the CEO and other Executive KMP. Each component is determined as a percentage of the total remuneration package. Base salary and superannuation received by each Executive KMP are disclosed on page 109. The maximum opportunity represented below is the most that can be awarded to any individual under the Group’s STI Plan and is only achieved in exceptional circumstances.
All Executive KMP
STI 1
LTI 1
TEC
Maximum 2 (as a % of TEC) CEO: 147% Other KMP: 80%
Target (as a % of TEC) CEO: 100% Other KMP: 80%
Maximum (as a % of TEC) CEO: 150% Other KMP: 120%
Base salary and superannuation
Opportunity
Performance measure None - fixed Group and Individual KPIs
50% relative TSR
50% FCF
50% – Cash End of year
50% – Securities Two year deferred
100% Performance awards Tested end of year four
Delivery
100% Cash
CEO
Fixed
100.0%
Target
29.0%
14.5%
14.5%
21.0%
21.0%
Maximum 25.0%
19.0%
19.0%
18.5%
18.5%
Other Executive KMP
Fixed
100.0%
Target
38.0%
15.5%
15.5%
15.5%
15.5%
Maximum 33.0%
20.0%
20.0%
13.5%
13.5%
1 The potential impact of future security price movements is not included in the value of deferred STI awards or LTI awards 2 Face value
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