Corporate Report for the year ended 30 June 2022
Introduction and overview
Business performance
Governance and risk
Directors’ report
Remuneration report
Financial statements
Sustainability supplement
Security holder information
Changes to remuneration framework During FY21, the Remuneration, People and Culture Committee undertook a detailed review of Transurban’s remuneration framework. Following the 2021 AGM, a further review was undertaken in response to concerns raised by security holders. The table below provides a summary of changes both already made and also being proposed to the remuneration framework.
Remuneration Component Remuneration Benchmarking
Feature
Previously
FY22
FY23
Peer Group
ASX 10 to 30
ASX 1 to 30
No further change
Short Term Incentive
Pool Funding
50% Group and 50% Individual performance Formula: (Individual STI outcome % + [Individual STI outcome % x Group performance %]) ÷ 2 • Proportional EBITDA (20%) • Proportional Net Costs (20%) • HSE (10%) • Individual Performance (50%)
100% Group performance
No further change
Changes to strengthen the alignment of Group results with individual outcomes Performance measures to determine STI pool outcome
Formula: (Individual STI outcome % x Group performance %)
No further change
• Proportional EBITDA (40%) • Proportional Net Costs (40%) • Health, Safety and Environment (20%)
Introduction of a Group Performance Scorecard 1 to
determine Group performance for the STI pool with the following categories: • Financials (55%) – Proportional EBITDA (40%) – Proportional Net Costs (15%) • HSE (15%) • Customer and Delivery (15%) • Sustainability, Reputation and Leadership (15%) The result from the Group Performance Scorecard will impact 100% of the STI Pool and therefore individual outcomes for Executive KMP. Incorporation of these measures into a Group Performance Scorecard to determine Group performance
Non-financial measures provide the Board with further context in assessing Group performance
NA
Introduction of additional non- financial measures in the areas of Customer, Leadership and Environmental Sustainability; to be used as a discretionary moderator to adjust the STI pool down if Transurban does not meet expectations in these areas
Long Term Incentive
Performance period Three-year performance period
Introduction of a four-year performance period, with
Four-year performance period
transitional arrangement for the FY22 award with 50% subject to a three-year performance period and 50% subject to a four-year performance period
1 Detail to be provided in the FY23 Remuneration Report
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