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
Overview of executive remuneration framework 1,2,3
Base salary and superannuation
TEC 4
100%
Securities deferred for two years following the performance period Subject to two-year service requirement and Board discretion
Cash
50%
50%
STI
50% of award based on relative TSR—performance measured at the end of year four
50%
LTI
50% of award based on FCF growth—performance measured at the end of year four
50%
Full LTI award vests at the end of year four subject to above performance outcomes and service arrangements
Year 1
Year 2
Year 3
Year 4
Executive KMP remuneration
Remuneration mix for Executive KMP The following diagrams show the minimum, target and maximum total remuneration opportunity for 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 117. Minimum: consists of TEC which is comprised of base salary and statutory superannuation. Target: consists of TEC, target STI (cash and deferred components) which totals 100% of TEC for the CEO and 67% of TEC for other Executive KMP and target LTI (face value of 147% of TEC for the CEO and 80% for other Executive KMP). The potential impact of future security price movements is not included in the value of deferred STI awards or LTI awards. Maximum: consists of TEC, maximum STI (cash and deferred components) which totals 150% of TEC for the CEO and 100.5% for other Executive KMP and maximum LTI (face value of 147% of TEC for the CEO and 80% for other Executive KMP). The potential impact of future security price movements is not included in the value of deferred STI awards or LTI awards. The maximum opportunity represented below is the most that could be awarded to Executive KMP. It does not reflect any intention to award that amount.
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 4 ) 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.
CEO
100%
$2.3m
29%
14.5%
14.5%
42%
$7.98m
25%
19%
19%
37%
$9.13m
Fixed remuneration Variable STI—cash Variable STI—deferred Variable LTI
Other Executive KMP
1 T he FY21 Plan (performance period 1 July 2020 to 30 June 2023) and the FY22 Plan (two performance periods, 50% of LTI grants with 1 July 2021 to 30 June 2024 and 50% with 1 July 2021 to 30 June 2025) both have relative TSR as a single performance measure. 2 T he Board has approved the re-introduction of FCF as a second performance measure for the FY23 LTI Plan 3 E ffective FY22 the performance period was increased from three years to four years with the FY22 LTI Plan being a transitional plan 4 Total Employment Cost (TEC)—includes base salary and statutory superannuation
100%
41%
32%
13.5% 13.5%
36%
28%
18%
18%
Fixed remuneration Variable STI—cash Variable STI—deferred Variable LTI
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