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Appendix B: Airservices Remuneration Report 2019-20

The purpose of this section is to summarise the:

  • remuneration for Board Members
  • performance outcomes and remuneration of the Executive
  • remuneration for leadership roles (other than the Executive) and other staff who were remunerated $225,000 and over.

The Board of Airservices uses a remuneration strategy and industry-based remuneration model for the Chief Executive Officer (CEO) and Executive General Managers (EGMs) that directly aligns to Airservices performance and the achievement of strategic organisational objectives and customer value.

This year’s report has changed from previous disclosures to align with the amended reporting requirements released by the Department of Finance.

Board Members and Executive

Board Members

We are governed by a Board that consists of a Chair, Deputy Chair, six non-executive Members and the CEO. The Board, other than the CEO, is appointed by the Minister. The CEO is appointed by the Board.

The Board is responsible for determining the corporate objectives, strategies and policies, and ensuring that we perform our functions in a proper, efficient and effective manner.

Board Members

Name

Status

Commenced

Finished

Chair

John Weber1

Ongoing

6 April 2017

Current

Deputy Chair

Mark Binskin2

Ongoing

13 September 2018

Current

Board Members

Fiona Balfour3

Ongoing

3 June 2013

Current

Samantha Betzien

Ceased

4 June 2012

3 September 2019

Anne Brown

Ongoing

4 December 2019

Current

Sue-Ellen Bussell

Ongoing

4 December 2019

Current

Marlene Kanga

Ongoing

4 September 2017

Current

David Marchant

Ongoing

21 July 2014

Current

John McGee

Ceased

4 September 2015

3 December 2019

Tim Rothwell

Ongoing

21 July 2014

Current

Chief Executive Officer

Jason Harfield

Ongoing

11 August 2015

Current

Notes:

1. Board Member from 6 April 2017 to 3 September 2017, Deputy Chair from 4 September 2017 to 2 June 2018 and Chairman from 3 June 2018.

2. Absent on extended leave from February 2020 to Chair the Royal Commission into National Natural Disaster Arrangements.

3. Board Member’s term finished on 2 September 2020, post reporting period, prior to publishing this report.

Executives

The Executive is accountable for leading, planning and managing Airservices operations, activities and performance in pursuit of our mission.

Executive General Managers

Name

Title

Commenced

Finished

Michelle Bennetts

EGM Customer Service Enhancement

25 January 2013

Current

Peter Curran

EGM Air Navigation Services

6 May 2019

Current

Lucinda Gemmell

Chief People and Culture Officer

1 June 2020

Current

Mark Hind

Acting Chief Information Officer

25 April 2020

Current

Paul Logan

Chief Financial Officer

2 July 2015

Current

Claire Marrison

EGM Safety and Assurance

3 November 2018

Current

Robert Porter1

EGM Aviation Rescue Fire Fighting Service

7 January 2019

Current

Christopher Seller

Chief Information Officer

1 July 2016

24 April 2020

Note:

1. Appointment ended on 31 August 2020, post reporting period, prior to publishing this report.

Remuneration Strategy and Settings

Executive remuneration

The responsibility of our Executive and other leaders is to create value for customers while maintaining and enhancing aviation safety, and build a workforce that is customer-oriented with an accountable performance culture.

Within this setting, the industry-based remuneration strategy ensures our Executive individually and collectively contribute to and drive sustained organisational performance for the long term. The remuneration model consists of two elements:

  • Total Fixed Remuneration (TFR)
  • Short Term Incentive (STI) payment.
Total Fixed Remuneration (TFR)

Each Executive role is independently evaluated to determine internal and external relativities of the position’s level of work value, size and complexity, accountability, and expertise and judgement required to be successful.

The position is benchmarked against a comparator group for Airservices comprising a blend of industry and sector relevant private and public sector organisations. The remuneration is subsequently set within the 50th percentile of the Mercer National General Market (MNGM). The MNGM comprises comprehensive data from over 750 organisations with over 330,000 data points across multiple industries, sectors and job families to provide an overall representation of the market.

The TFR includes cash salary, employer contributions and any salary sacrifice component. It is reviewed annually against the remuneration benchmarking data and corporate performance, with a focus on maintaining a commercially responsible position.

These key inputs are provided through external independent advice from Mercer, the world’s largest human resources consulting firm.

Short Term Incentive (STI) Payments

STI payments are designed to reward and align collective Executive performance with the organisation’s performance, based on key outcomes that are linked to the Airservices Corporate Plan.

Based on benchmarking research conducted by Mercer, a conservative approach to STI payments has been implemented with the potential for a maximum of 10 per cent of TFR for the EGMs and a maximum of 20 per cent of TFR for the CEO.

The awarding of STI payments is solely at the Board’s discretion and is based on performance and outcomes against the corporate scorecard set by the Board.

Sixty per cent of the STI is payable in the year after it was awarded, with the remaining 40 per cent held back for a further 12 months. This approach drives sustained Airservices performance and success.

Remuneration Governance

A key objective of the Board Remuneration and Human Resources Committee is to review matters relating to the remuneration and performance of the CEO and Executive.

The Committee is comprised of at least three non-executive Board Members, with one appointed as the Chair. In addition, the Board Chair and CEO are ex-officio members of the Committee.

In 2019–20 the Committee Chair was Samantha Betzien (from 1 July 2019 to 3 September 2019), Mark Binskin (from 4 September 2019 to 3 December 2019) and Sue-Ellen Bussell (from 4 December 2019). The non-executive Board Members were Marlene Kanga, David Marchant and Tim Rothwell.

Remuneration Governance Remuneration Governance

Annual Fees and Allowances for Board Members

The Commonwealth Remuneration Tribunal determines the annual fees and allowances for our part-time Chair and Board Members. In setting remuneration, the Tribunal considers a range of matters including workload and value of the office, fees in the private sector, and wage and other economic indices.

Given the impact of the COVID-19 pandemic on Airservices revenue, all non-Executive Board members voluntarily agreed to forego 20 per cent of their annual fees payable during 1 April to 30 June 2020.

Corporate Performance Outcomes 2019-20

The scorecard comprised key corporate performance metrics/indicators, initiatives under the pillars of our Corporate Plan and OneSKY Program milestones.

Corporate Performance Scorecard

Corporate Metrics Weighting 60%

Outcomes

Key Performance Indicators

2019-20 Target

2019-20 Actual

Assessment

Safety

Significant attributable safety incidents – ATM and ARFFS

0

0

Met

Total lost time injury frequency rate

≤ 1.5

2.3

Not Met

Financial stewardship

Manage costs within allocated budget

Meet budget

Met budget

Met

Return on assets

5.9%

-1.3%

Not Met

Business operations / efficiency

Total operating cost per instrument flight rules flight hour ($/hr)

$347

$367

Not Met

Industry outcomes

Arrival airborne delay – median (high volume operations)

≤ 0.6 mins

0.9 mins

Not Met

Arrival airborne delay – 75th percentile (high volume operations)

≤ 3.3 mins

4.3 mins

Not Met

Customer satisfaction

≥ 70%

On Hold

Organisational capacity

People engagement index

> 2018-19 result

Independent Review

Diversity and inclusion index

> 2018-19 result

Independent Review

Corporate Performance Scorecard

Corporate Initiatives Weighting 60%

Deliverable

Assessment

Initiatives under Service Excellence pillar

Met

Initiatives under Service Innovation pillar

Met

Initiatives under Industry Leadership pillar

Met

Initiatives under Organisational Agility pillar

Met

Corporate Performance Scorecard

OneSKY Program Weighting 60%

Deliverable

Assessment

Initiatives under OneSKY Program

Preliminary Design Review completed

Met

Critical Design Review completed

Partially Met

Melbourne Air Traffic Services Centre ready for installation

Met

In May 2019, the Board determined that, due to the impact of the COVID-19 pandemic and the prevailing business and economic climate, no STI payments for 2019-20 would be paid to Airservices leaders.

Board Member Remuneration

The following table outlines the remuneration earned and accrued by Board Members throughout 2019-20.

Board Remuneration

Short-Term Benefits

Post-Employment Benefits

Name

Base salary

$

Other benefits / allowances1

$

Superannuation contributions

$

Total Remuneration

$

John Weber

152,386

12,089

14,779

179,254

Mark Binskin

75,780

727

7,199

83,706

Fiona Balfour

71,242

3,424

6,919

81,586

Samantha Betzien

11,948

378

1,135

13,461

Anne Brown

43,528

1,268

4,135

48,931

Sue-Ellen Bussell

43,528

994

4,135

48,657

Marlene Kanga

76,197

3,090

7,390

86,677

David Marchant

76,197

4,931

7,390

88,518

John McGee

32,669

1,873

3,255

37,797

Tim Rothwell

76,197

4,718

7,541

88,456

Note:

1. Includes Board Committee membership and travel allowances.

Executive Remuneration

The following table outlines the remuneration earned and accrued by the Executive in 2019-20.

Executive Remuneration

Short-Term Benefits

Post-Employment Benefits

Long-Term Benefits

Name

Base Salary1

$

Bonuses

$

Other benefits / allowances2

$

Superannuation contributions

$

Long service leave

$

Total Remuneration

$

Jason Harfield

730,813

0

8,000

73,7383

23,847

836,399

Michelle Bennetts

399,746

0

8,000

39,132

11,709

458,587

Peter Curran

430,340

0

56,390

41,933

8,977

537,639

Lucinda Gemmell

28,865

0

30,000

0

709

59,574

Mark Hind

41,863

0

738

4,605

1,059

48,265

Paul Logan

365,013

0

8,000

38,1793

11,811

423,002

Claire Marrison

299,799

0

0

28,643

9,263

337,704

Robert Porter

370,338

0

0

35,725

7,462

413,525

Christopher Seller

310,082

0

8,005

31,755

-32,005

317,837

Notes:

1. Base Salary includes annual leave paid and the net movement in annual leave balance.

2. Includes motor vehicle and relocation allowances and associated Fringe Benefits Tax.

3. Member of AvSuper defined benefit superannuation scheme.

Leadership Roles (other than Executive) Remuneration

The following table outlines the average remuneration earned and accrued by non-Executive leaders in 2019-20.

Other Leaders Remuneration

Average Short-Term Benefits

Average Post-Employment Benefits

Average Long-Term Benefits

Remuneration Band

Number of Staff

Base salary

$

Bonuses

$

Other benefits / allowances1

$

Superannuation contributions

$

Long service leave

$

Average Termination Benefits

$

Average Total Remuneration

$

$0 – $225,000

161

136,957

0

489

14,757

-350

5,234

157,087

$225,001 – $250,000

34

201,252

0

244

21,632

5,664

8,538

237,330

$250,001 – $275,000

16

228,238

0

1,122

23,828

7,203

0

260,390

$275,001 – $300,000

8

198,644

0

2,133

25,349

5,373

53,673

285,171

$300,001 – $325,000

7

245,645

0

3,129

24,983

6,754

29,516

310,026

$325,001 – $350,000

1

229,134

0

71,293

24,288

6,412

0

331,128

$350,000 – $375,000

1

122,537

0

5,983

25,089

3,286

198,071

354,965

$375,001 – $400,000

1

344,699

0

0

31,405

6,733

0

382,836

229

Notes:

Table incorporates leadership roles on employment contracts below Executive General Manager.

1. Includes early retirement benefit payments and fly in fly out, living away from home and home purchase/sale allowances to eligible employees.

Other Highly Paid Staff Remuneration

The following table outlines the average remuneration earned and accrued by other highly paid staff in 2019-20.

Other Highly Paid Staff Remuneration

Average Short-Term Benefits

Average Post-Employment Benefits

Average Long-Term Benefits

Remuneration Band

Number of Staff1

Base salary

$

Other benefits / allowances2

$

Superannuation contributions

$

Long service leave

$

Average Termination Benefits

$

Average Total Remuneration

$

$225,001 – $250,000

324

202,640

1,468

26,308

6,058

805

237,278

$250,001 – $275,000

200

225,225

1,855

28,409

5,776

0

261,266

$275,001 – $300,000

72

245,505

3,030

29,597

5,481

0

283,613

$300,001 – $325,000

22

225,958

34,492

29,481

5,447

16,051

311,429

$325,001 – $350,000

14

226,540

44,394

31,134

5,214

27,855

335,138

$350,001 – $375,000

7

258,472

57,808

36,025

5,888

0

358,194

$375,001 – $400,000

2

215,989

42,205

26,893

4,260

98,189

387,533

$400,001 – $425,000

1

164,724

5,983

25,775

4,433

203,486

404,400

$425,001 – $450,000…

1

301,618

97,242

29,575

5,771

0

434,206

$475,001 – $500,000

1

253,173

242,970

0

0

0

496,143

$500,001 – $525,000

1

86,860

196,108

20,141

2,572

196,108

501,789

$525,001 – $550,000

1

91,599

217,974

16,593

2,572

217,974

546,713

$550,001 – $575,000…

1

306,750

195,305

47,438

3,643

0

553,135

$625,001 – $650,000

1

377,484

225,717

22,764

5,246

0

631,212

648

Notes:

1. Includes 597 staff employed under the Air Traffic Control and Supporting Air Traffic Services Enterprise Agreement, 27 staff employed under the Air Traffic Control Line Manager Enteprise Agreement and 6 staff employed under the Aviation Rescue Fire Fighting Enterprise Agreement.

2. Includes early retirement benefit payments and fly in fly out, living away from home and home purchase/sale allowances to eligible employees.