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Remuneration Report
Details of the total remuneration received by each Fletcher Building director for FY18 are as follows:
Safety, Health, Environment and Sustainability Committee
Overseas based directors travelling allowance
Non-vouchable expense reimbursement allowance
Audit and Risk Committee
Nominations Committee 1 $0 (Chairman)
Remuneration Committee
Total Remuneration $384,677.42
Directors
Board Fees
Sir Ralph Norris (Chairman) 2
$379,677.42
$5,000.00
$143,241.94 $13,859.77 $8,629.03 $15,100.81
$5,000.00
$185,831.55
Antony Carter 3
$143,241.94 $32,459.67 (Chairman)
$8,629.03
$5,000.00
$189,330.64
Bruce Hassall 4
Alan Jackson
$143,241.94
$8,629.03 $30,201.61 (Chairman)
$15,100.81 $5,000.00
$202,173.39
$52,566.67 $14,566.67 $3,166.66
$1,586.02
$71,886.02
John Judge 5
$41,500.00 $5,750.00 $2,500.00
$8,750.00 $1,250.00 $4,500.00 $64,250.00
Kate Spargo 6
$143,241.94 $19,846.77 $8,629.03
$25,111.57 (Chairman)
$5,000.00
$201,829.31
Cecilia Tarrant 7
Steve Vamos
$143,241.94 $19,846.77 $8,629.03 $15,100.81
$5,000.00 $18,000.00 $209,818.55
Total
$1,189,953.79 $106,329.65 $48,811.81 $60,403.23 $48,962.38 $32,836.02 $22,500.00 $1,509,796.88
1 All non-executive directors are members of the Nominations Committee. 2 Inclusive of committee fees.
3 Appointed member of the Audit and Risk Committee effective 20 September 2017. 4 Appointed chairman of the Audit and Risk Committee effective 25 October 2017. 5 Retired from the board on 25 October 2017. 6 Ceased to be director effective 20 September 2017. 7 Appointed chairman of the Safety, Health, Environment and Sustainability Committee effective 20 September 2017.
Executive and senior management remuneration The Company’s remuneration strategy aims to attract, retain and motivate high calibre employees at all levels of the organisation, to support our vision of being the undisputed leader in New Zealand and Australian building solutions – with Products and Distribution at our core. Total remuneration is comprised of three elements - fixed remuneration, a short term variable incentive, and a long-term share scheme. Our remuneration strategy and frameworks are supported by a Remuneration Committee that oversees remuneration policies, and the performance, remuneration, development and succession planning of executives and senior management. The Company’s remuneration committee is kept appraised of relevant market information and best practice, obtaining advice from external advisors when necessary. Remuneration levels are reviewed and benchmarked annually for market competitiveness, and alignment with strategic and performance priorities. The remuneration committee engaged PwC to provide remuneration benchmark data for the chief executive officer and other executive committee roles during the year. A New Zealand and Australian peer group comprised of companies comparable in size, complexity and industry is used to benchmark executives based in New Zealand and Australia. An additional global peer group was considered in respect of the chief executive officer role, which included comparable companies from other regions, geographies or countries where Fletcher Building has operations. Fixed remuneration Fletcher Building’s policy is to set fixed remuneration comparable to the median, and total remuneration comparable to the upper quartile for equivalent roles in the country or region in which the employee is located. Participation in retirement savings plans is made available to employees as required by remuneration practices in relevant jurisdictions. Short-term variable incentive (STI) STI’s are designed to incentivise earnings performance and operating cash targets by rewarding employees’ performance against financial and individual goals. Participation in the STI plan is by annual invitation at the discretion of the Company, and comprises both financial and personal targets. Financial targets For the chief executive officer, corporate executives and senior management, the financial target is based on the Group EBIT and operating cash. For operating executives and senior management, the financial target is based on their own division/business unit EBIT or EBIT/Funds and operating cash or working capital depending on the business’ priorities, with a proportion also based on the Group EBIT (and Group operating cash for divisional roles) to incentivise alignment across the Group.
106 Fletcher Building Limited Annual Report 2018
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