Directors’ Report
3.3 Executive Remuneration - Fixed Pay (FP), Total Remuneration Package (TRP) and the Variable Remuneration Framework The primary objectives of the Remuneration Policy are to ensure that remuneration is competitive, aligned with the Company’s business objectives in both the short term and the long term, and appropriate for the results delivered by the individual. In accordance with this objective, the Company has structured remuneration packages to provide an appropriate mix of fixed and performance based pay components which are based on both the individual’s performance and Group performance. By adopting a robust approach to remuneration, the Group aims to attract and retain top talent. The remuneration framework is also designed to reward prudent risk-taking, support effective risk management and prioritise the long term financial soundness of the business and its shareholders. Total executive remuneration is made up of three components: • Fixed Remuneration; • Short Term Variable Remuneration ( STVR ), made up of: • Cash; and • Restricted Rights; and • Long Term Variable Remuneration ( LTVR ) made up of Performance Rights. Variable Remuneration is intended to balance risk and business outcomes, with a blend of ‘at-risk’ remuneration and incentives. Metrics selected are intended to be linked to the primary drivers of value creation for stakeholders, and successful implementation of the long term strategy over both the short and long term. Thresholds are intended to be a near-miss of expectations, while Target is intended to be challenging but a realistically achievable objective with a probability of around 50% to 60%. Stretch on the other hand is designed to be exceptionally challenging with a probability of around 10% to 20%. Fixed Remuneration is made up of base salary and superannuation. Base salary includes cash salary and any salary sacrifice items. The Group provides employer superannuation contributions of the relevant statutory SG rate of each executive’s base salary, capped at the relevant maximum contribution base. To ensure an employee’s Fixed Remuneration is competitive, it is benchmarked against median salary survey results from a group of comparable Australian financial service companies. Fixed Remuneration is reviewed annually, following the end of the 30 June performance year, which may have flow-on implications for variable remuneration which is expressed as a percentage of Fixed Pay.
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ClearView Wealth Limited
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