Remuneration is referred to as compensation.
Key management personnel have authority and responsibility for planning, directing and controlling the activities of the company, including Directors of the company and other executives. Key management personnel include the Directors and senior executives for the company.
Compensation levels for key management personnel and secretaries of the company are competitively set to attract and retain appropriately qualified and experienced Directors and executives. The Chairperson and Managing Director obtain independent advice on the appropriateness of compensation packages of the company, given trends in comparative companies both locally and internationally, and the objectives of the company's compensation strategy.
The compensation structures explained below are designed to attract suitably qualified candidates, reward the achievement of strategic objectives, and achieve the broader outcome of creation of value for shareholders. The compensation structures take into account:
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the capability and experience of the key management personnel;
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the key management personnel's ability to control the relevant segment/s' performance;
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the company's performance including:
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the company's earnings, and
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growth in share price and returns on shareholder wealth; and
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the amount of incentives within each key management person's compensation.
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Compensation packages include a mix of fixed and variable compensation and short and long-term performance based incentives.
In addition to their salaries, the company also provides non-cash benefits to its key management personnel, and contributes to a post-employment retirement plan for Directors. In accordance with the terms of the plan, after three years service, retiring non-executive Directors receive, on a sliding scale, benefits up to a maximum of five times the average annual remuneration in the three years preceding retirement.