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Key Management Personnel Remuneration


ASC’s key management personnel (KMP) are the Non-Executive Directors, the Managing Director and those Senior Executives whom hold authority and responsibility for planning, directing and controlling ASC’s strategic direction.

ASC’s KMP include KMP for both ASC Pty Ltd and its former shipbuilding business, ASC Shipbuilding Pty Ltd.

Fees for Non-Executive Directors are set by the relevant determination of the Remuneration Tribunal.

A summary for KMP remuneration for the financial year 2018/19 is included at Table 1.

ASC’s approach to senior executive remuneration is below.

Senior Executive Remuneration Overview

ASC Pt Ltd.’s Senior Executive remuneration structure has been developed to ensure that its Senior Executives are remunerated commensurate with the market and incentivised to deliver against the corporate objectives.

ASC’s Senior Executive remuneration is structured with a total fixed remuneration (TFR) amount, together with a short-term incentive (STI) payment, should the required company performance and individual objectives be achieved.

The remuneration of the ASC Pty Ltd Managing Director is in accordance with the relevant determination of the Remuneration Tribunal and the role is currently classified as a Principal Executive Office Band E and includes an at-risk amount of up to 20 percent of total remuneration.

Setting Senior Executive Remuneration

ASC Senior Executive remuneration packages are developed so as to ensure as much as is possible that the total remuneration amount is competitive when compared to similar organisations.

ASC Senior Executive TFR consists of salaries and wages, allowances and other non-monetary benefits, annual leave and superannuation. When establishing an appropriate TFR for an ASC Senior Executive the following elements are considered:

  • Market data;
  • Risk and complexity of the role;
  • The Executive’s experience and skills;
  • Performance; and
  • Internal relativity within the Senior Executive.

Benchmarking and review of Senior Executive remuneration

ASC Senior Executive roles are independently benchmarked annually against reference market data gathered from market research and augmented with survey data.

The ASC Board’s Human Resource and Remuneration Committee reviews Senior Executive remuneration packages annually to ensure they are reflective of company and individual performance and market conditions, as well as any relevant Remuneration Tribunal determinations. The ASC Board is responsible for the approval of Senior Executive remuneration packages and the award of annual individual STI’s following recommendations from the Human Resource and Remuneration Committee.

Linking company and individual performance to STI payments

To ensure that ASC’s strategic objectives are achieved each Senior Executive remuneration package contains a portion of ‘at risk’ remuneration paid as an STI payment. The STI program is a core element of ASC’s Senior Executive remuneration package as it is tied directly to the successful completion of both company and individually assigned objectives which are directly aligned to ASC’s strategy and are set out in relevant Board approved Game Plans.

The STI allows ASC to:

  • Incentivise the delivery of corporate objectives aligned to ASC’s strategy; and
  • Reward Senior Executives that have contributed to ASC’s success during the performance period.

Table 1 - RENUNERATION OF KEY MANAGEMENT PERSONNEL FOR THE 2018/19 FINANCIAL YEAR Remuneration for Key Management Personnel for FY 17/18 and FY 18/19 is shown in the table below.

Short Term Benefits

Post Employment Benefits

Other Long Term Benefits

Termination Benefits

Total Renumeration

Base Salary (1)

Bonuses

Other benefits & allowances

Superannuation contributions

Long Service Leave (2)

Other long term benefits

(3)

Position Title

Note

$

$

$

$

$

$

$

$

ASC PTY LTD

Stuart Whiley

Managing Director and Chief Executive Officer

2019

595,259

120,348

0

25,000

15,043

0

0

755,650

2018

601,569

95,967

0

25,000

14,437

0

0

736,973

Martin Edwards

General Manager Submarine Capability Development

2019

445,580

81,369

16,888

25,000

10,171

0

0

579,008

2018

441,780

68,845

39,450

25,000

9,972

0

0

585,047

Paul Gay

General Manager Collins Class Submarine Project

2019

387,082

73,733

0

25,000

9,217

0

0

495,031

2018

382,855

69,142

0

25,000

9,036

0

0

486,033

Christian Hamilton

General Manager Strategy

2019

287,223

51,499

0

31,462

6,995

0

0

377,179

2018

276,661

54,551

0

29,298

6,860

0

0

367,370

Wendy Hoad

General Counsel and Company Secretary

2019

4

312,939

58,472

12,144

25,000

7,309

0

0

415,864

2018

286,984

50,131

12,565

24,811

7,166

0

0

381,657

Ashley Menadue

Chief Financial Officer

2019

417,514

79,178

O

25,000

9,897

0

0

531,589

2018

411,920

71,338

15,537

25,000

9,703

0

0

533,498

Total

2019

2,445,597

464,599

29,032

156,461

58,631

0

0

3,154,320

2018

2,401,769

409,974

67,552

154,109

57,174

0

0

3,090,578

ASC Shipbuilding

James Cuthill

Acting Chief Executive Officer ASC Shipbuilding

2019

5

202,860

41,566

0

34,950

3,430

0

0

282,806

2018

373,106

52,741

0

25,000

7,395

0

0

458,242

Mark Lamarre

Chief Executive Officer ASC Shipbuilding Pty Ltd

2019

2018

6

1,874,986

1,131,341

21,963

0

11,800

0

0

3,040,090

Total

2019

202,860

41,566

-

34,950

3,430

0

0

282,806

2018

2,248,091

1,184,082

21,963

25,000

19,195

0

0

3,498,332

Grand Total

2019

2,648,457

506,165

29,032

191,411

62,062

0

0

3,437,127

2018

4,649,861

1,594,056

89,515

179,109

76,369

0

0

6,588,910

  1. Base salary includes annual leave accrued in the year and allowances paid.
  2. Long service leave relates to amounts accrued during the relevant period.
  3. Termination benefits include payment of statutory benefits for long service leave and annual leave, which have previously been accrued.
  4. W Hoad ceased employment on 5 July 2019.
  5. J Cuthill ceased to be a Senior Executive of the ASC Group on 13 December 2018 with the transfer of ASC Shipbuilding Pty Ltd to separate government ownership.
  6. M Lamarre retired on 17 December 2017. An accrual for tax equalisation payments to Mr Lamarre has been included in Bonuses.

Recognition and Measurement

Short-term benefits
Short-term employee benefits include salaries and wages (inclusive of salary sacrificed items and any applicable fringe benefits tax), allowances, annual leave and other nonmonetary benefits (including any applicable fringe benefits tax). A liability is also recognised for short term incentives incurred during the financial year.

Post-employment benefits
Superannuation contributions (including superannuation guarantee contributions) paid into superannuation plans nominated by employees are recognised as an expense as they become payable.

Other long-term benefits
The long service leave benefit represents amounts accrued during the financial year with respect to an employee. The group’s liability for long service leave is measured as the present value of expected future payments to be made in respect of services provided by the employees up to the end of the reporting period.

Termination benefits
Benefits are payable when employment is terminated, and an expense is incurred based on an agreed formal plan to terminate current employees without the probability of withdrawal. Other payments in relation to termination such as annual leave and long service leave are also included, even where the cost of these has been accrued in previous years.

Total compensation
Total compensation includes total fixed compensation plus short-term and long-term incentives, long service leave and termination benefits.

Non-Executive Director Fees

All Non-Executive Directors of ASC Pty Ltd are appointed by the Minister for Finance. Fees for Non-Executive Directors are set through the determinations of the Commonwealth Remuneration Tribunal (the Tribunal). The Tribunal makes the Determination in accordance with subsections of the Remuneration Tribunal Act 1973.

The Tribunal sets annual Chair and Board Member fees (exclusive of superannuation contributions) for all activities undertaken by Non-Executive Directors on behalf of ASC Pty Ltd.

A summary for Non-Executive Directors remuneration for the financial year 2018/19 is included at Table 2.

Non-Executive Position

From 1 July 2018 $

From 1 July 2018 $

Chairman1

163,020

159,820

Member

76,090

74,590

Chair:

Audit Committee

16,000

15,680

Member:

Audit Committee

8,000

7,840

Chair:

Business Assurance and Security Committee

15,360

15,050

Member:

Business Assurance and Security Committee

7,680

7,530

1 The Chairman is not remunerated further for committee memberships.

Table 2 – RENUNERATION OF NON-EXECUTIVE DIRECTORS FOR THE 2018/19 FINANCIAL YEAR Remuneration for Non-Executive Directors for FY 17/18 and FY 18/19 is shown in the table below

Short‑term benefits

Post‑employment benefits

Other Long‑term benefits

Termination benefits

Total remuneration

Name

Position title

Year

Note

Base salary

Bonuses

Other benefits and allowances (1)

Superannuation contributions

Long service leave

Other long‑term benefits

ASC PTY LTD

$

$

$

$

$

$

$

Bruce Carter

Chairman

2019

0

0

163,020

15,487

0

0

0

178,507

2018

0

0

159,820

15,183

0

0

0

175,003

Rosalind Dubs

Director

2019

2

0

0

83,770

7,958

0

0

0

91,728

2018

0

0

82,120

7,801

0

0

0

89,921

Gary Gray

Director

2019

3

0

0

83,770

7,958

0

0

0

91,728

2018

0

0

82,120

7,801

0

0

0

89,921

Joycelyn Morton

Director

2019

4

0

0

92,090

8,749

0

0

0

100,839

2018

0

0

90,270

8,576

0

0

0

98,846

Loretta Reynolds

Director

2019

5

0

0

84,090

7,989

0

0

0

92,079

2018

0

0

82,430

7,831

0

0

0

90,261

Paul Rizzo

Director

2019

6

0

0

99,450

9,448

0

0

0

108,898

2018

0

0

97,480

9,261

0

0

0

106,741

Geoffrey Rohrsheim

Director

2019

7

0

0

24,787

2,355

0

0

0

27,142

2018

0

0

0

0

0

0

0

0

Total

2019

0

0

630,977

59,943

0

0

0

690,920

2018

0

0

594,240

56,453

0

0

0

650,693

Notes:

  1. Director fees have been classified as other benefits and allowances.
  2. R Dubs is a member of the Business Assurance and Security Committee.
  3. G Gray is a member of the Business Assurance and Security Committee.
  4. J Morton is the Chair of the Audit Committee.
  5. L Reynolds is a member of the Audit Committee.
  6. P Rizzo is the Chair of the Business Assurance and Security Committee and a member of the Audit Committee.
  7. G Rohrsheim was appointed as a Director on 15 March 2019 and is a member of the Business Assurance and Security Committee.