57 / 132
•
•
Attract, motivate and retain staff
of the highest quality who can
deliver the desired outcomes.
•
•
Operate within applicable government
policy and community expectations.
•
•
Align as much as possible, within the
parameters of government policy, the
remuneration of executives and the
drivers of shareholder value creation.
ARTC strives to balance these
sometimes competing objectives,
while offering a market competitive
remuneration system and creating a
strong values based culture that is
consistent with community expectations.
Remuneration elements
Remuneration for ARTC’s Senior
Managers consists of two elements:
Fixed Annual Remuneration (FAR) and
an at-risk Short-Term Incentive (STI)
payment.
Each remuneration element is designed
to support the overall remuneration
objectives.
Fixed Annual Remuneration
The level at which FAR is set takes into
account the size and complexity of a
recipient’s role and the skills required
to succeed in the role. It acknowledges
the Government policy while having
regard to the median remuneration of
comparably sized companies, operating in
similar markets.
It includes cash salary, employer
contributions to superannuation
(Accumulation Scheme) and any
salary sacrifice component.
The remuneration range for ARTC’s
Managing Director and CEO is set by
the Remuneration Tribunal. The role
is currently classified as a Principal
Executive Officer (PEO) Band D, with
his remuneration being set by the Board
within the Remuneration Tribunal’s
parameters.
Remuneration for other Senior Managers’
is set at the mid-point of the Mercer
(Australia) benchmark for comparable
roles in the Australian market.
Short Term Incentive
STI is designed to align Senior Managers’
remuneration with that of shareholders,
while recognising that direct outcomes
for shareholders need to reflect the
creation of value for customers and the
engagement of staff.
The maximum STI is set as a percent of
FAR as outlined in the following table.
* As a percent of the reference rate as
determined by the Remuneration Tribunal
In setting targets, with the objective of
achieving alignment with the interest
of shareholders, due regard is paid to
ARTC’s Statement of Corporate Intent
and the Strategic Plan. More specifically,
in the case of the CEO, the targets for
the year and the weighting of each were
as follows.
Role
STI as
percent of FAR
CEO
30*
Other Senior
Managers
20
55