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
Our executive remuneration approach
Our remuneration policy and strategy are designed to support and reinforce our business strategy and sustainable long-term growth with consideration being given to the interests of all our stakeholders. The remuneration components that are at risk require the successful execution of that strategy in both the short and long term. Our strategic drivers are reflected in our STI and LTI performance measures so that business performance, security holder outcomes and senior executive remuneration are directly aligned. The Remuneration Report is presented to security holders annually showing how the Board has applied the Remuneration Framework.
Our purpose
To strengthen communities through transport
Our strategy
By understanding what matters to our stakeholders, we create road transport solutions that make us a partner of choice
Remuneration strategy
A total remuneration framework designed to attract, motivate and retain the most skilled, experienced and capable senior executives by rewarding them for delivering on our business strategy and creating long-term, sustainable value for stakeholders
Governance
The Board holds discretion with regard to the setting of targets and hurdles, as well as decisions regarding performance and remuneration outcomes; this includes taking into account any relevant significant items
Minimum security holding requirements for Group CEO and KMP (equal in value to fixed remuneration excluding superannuation; five-year period to accumulate)
Strict protocols for engaging independent remuneration consultants and advisors
Remuneration principles
Aligns the interests of our people with stakeholders, particularly security holders and partners, and importantly considers the impact on the community Fixed remuneration Salary including statutory superannuation
Attracts, motivates and retains the best talent with capabilities that enable our competitive value proposition
Balances financial and non- financial performance which aligns to our purpose, values and risk appetite
Pays fairly and appropriately for operational performance and long-term value creation
Remuneration policy, including
Short Term Incentive (STI) Target performance, defined by a combination of group and individual Key Performance Indicators (KPIs), could achieve a 100% of STI target, with the potential, based on over-achievement of group and individual KPIs, to earn a maximum of 150% of STI target Annual incentive awarded 50% in cash and 50% as two-year deferred Transurban securities Current year performance Designed as a lever to deliver our strategic and operational priorities, with a level of outperformance that reflects our values and supports our purpose Rewards for strong collective and individual contributions to overall performance of Transurban and where deferral applies provides an additional retention incentive and enables clawback optionality
Long Term Incentive (LTI) Long-term business performance measures determine opportunity for vesting of security grants Performance Rights with a four-year performance period, with transitional arrangements for FY22 LTI Plan
components and delivery mechanisms
Purpose
Fixed component Designed to provide market competitive remuneration to attract and retain the best talent in Australia and internationally for Transurban’s current and future priorities, taking into consideration roles and experience Key role accountabilities, size and complexity are weighed up against individual responsibilities, knowledge, skills and experience to determine the appropriate level of fixed remuneration
Long-term sustainable performance Designed to focus on the achievement of sustainable longer-term value creation; the performance period better reflects security holder expectations and enables the application of malus and clawback
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