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Appendix 6 - Executive remuneration reporting

As a Commonwealth entity, the ABC is required to disclose executive remuneration information in annual reports in accordance with the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).

Commonwealth entities are required to present remuneration for key management personnel, senior executives and other highly paid staff, as defined in the PGPA Rule.

Key management personnel

Key management personnel (KMP) are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. The Corporation determined KMP as the members of the Board, the Managing Director, Content Team Directors and the Chief Financial Officer.

Senior executives

Senior executives are employees employed in a position equivalent to classification Groups 9 to 11 of the table in Schedule 1 to the Public Service Classification Rules 2000. The Corporation determined senior executives as executive directors who are not KMP (Senior Executives).

Other highly paid staff

Other highly paid staff are employees who are neither KMP nor senior executive and whose total remuneration paid during the year exceeded $225,000 (Other Highly Paid Staff).

Total remuneration

Total remuneration is defined in the PGPA Rule as the sum of the following (calculated on an accrual basis):

  1. base salary
  2. performance pay and bonuses
  3. other benefits and allowances
  4. superannuation contributions (made by the employer)
  5. long service leave
  6. other long-term benefits
  7. termination benefits.

Executive and employee remuneration policy

At the core of the ABC’s approach to remuneration is a need to ensure the Corporation can realise its strategic priorities through an ability to attract and retain employees who deliver on its priorities and deliver value for audiences into the future.

Remuneration principles and framework

Remuneration Principles

Equitable

Market competitive

Performance aligned

Transparent

We ensure our remuneration approach is consistent and equitable

We attract and retain the best talent to meet our current and future workforce needs

We recognise and reward for contribution to performance goals and targets

We have a transparent and disciplined approach to managing remuneration decisions and costs

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Remuneration Framework

Element

Fixed remuneration comprises base salary, superannuation and benefits.

Executive KMP, Senior Executives and some Other Highly Paid Staff are eligible to receive an at-risk payment for the achievement of performance targets.

The Commonwealth Remuneration Tribunal (the Tribunal), consented to the removal of at-risk pay for the Managing Director (MD) from 1 June 2018.

Performance

Reviewed annually to reflect the experience, competence and contribution of individuals whilst remaining conservatively competitive against the market.

For Executive KMP and Senior Executives, half of the at-risk opportunity is linked to ABC corporate objectives and half is linked to individual objectives.

Some Other Highly Paid Staff are eligible to receive an at risk payment for the achievement of performance targets, some are eligible to be paid a performance bonus in accordance with the terms in the Senior Employment Agreement 2016 and some are eligible to be paid a bonus in accordance with the ABC Enterprise Agreement 2019-22.

Alignment

Attracts and retains the best talent to meet ABC’s strategic priorities.

Varies annual remuneration up or down to reflect contribution, aligned with ABC’s strategic priorities.

Target remuneration mix

Executive KMP (excluding MD) and Senior Executives

Fixed remuneration 83-100%

At-risk remuneration 0-17%

Eligible Other Highly Paid Staff

Fixed remuneration 83-100%

At-risk remuneration 0-17%

Remuneration governance

All Executive KMP, Senior Executives and Other Highly Paid Staff are employees of the ABC. Remuneration and other terms of employment are formalised as follows:

  • Executive KMP and Senior Executives (Executives): Individual employment agreement.
  • Other Highly Paid Staff: Individual employment agreement or engaged through either the ABC Senior Employment Agreement 2016 or the ABC Enterprise Agreement 2019-22.

During the year ended 30 June 2020, ABC’s Audit & Risk Committee (ARC) assisted the Board in fulfilling its governance responsibilities in relation to remuneration. Outlined below is the ABC’s approach for setting, monitoring and approving remuneration policy and amounts. Note that the Managing Director’s (MD) remuneration arrangements, including the MD’s annual total remuneration amount, are set by the Commonwealth Remuneration Tribunal (the Tribunal).

MD

ARC

ABC Board

► Recommend Executive KPIs

► Review and recommend to the Board Executive remuneration structures and incentive plans, policies and practices including any changes to those plans

► Review and approve recommendations referred by the ARC

► Evaluate and provide recommendations regarding remuneration structures and incentive plans for Executives, including any changes to those structures or plans

► Approve Executive remuneration with respect to individual remuneration arrangements, KPIs, performance assessments and remuneration outcomes

► Approve performance assessments and remuneration outcomes for Other Highly Paid Staff, as recommended by ABC’s managers

Non-executive director (NED) remuneration

All ABC NEDs are appointed by the Commonwealth of Australia through the Shareholder Ministers.

The Commonwealth Remuneration Tribunal, an independent statutory body overseeing the remuneration of key Commonwealth offices, determines fees for all ABC NEDs. The ABC is required to comply with the Tribunal’s determinations and plays no role in the consideration or determination of NED fees.

The Tribunal sets annual Chair, Deputy Chair and Board Member fees (exclusive of statutory superannuation contributions) which are inclusive of all activities undertaken by NEDs on behalf of the ABC (i.e. inclusive of Committee participation). Statutory superannuation is paid in addition to the fees set by the Tribunal.

The Commonwealth Remuneration Tribunal determination for the relevant period set the following ABC Board fees:

  • Chair: $178,190
  • Deputy Chair: $87,970
  • Member: $58,670

Key management personnel remuneration

Key management personnel (KMP) are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. The Corporation determined KMP as the members of the Board, the Managing Director, Content Team Directors and the Chief Financial Officer.

Name

Position title

Short-term benefits

Post-employment benefits

Other long-term benefits

Termination benefits

Total remuneration

Base salary

Bonuses

Other benefits and allowances

Superannuation contributions

Long service leave

Other long-term benefits

David Anderson

Managing Director

938,034

-

-

126,514

(66,534)

-

-

998,014

Michael Carrington

Director Entetairnment & Specialist

432,683

-

-

21,003

15,008

-

-

468,694

Melanie Kleyn

Chief Financial Officer

423,155

-

-

21,003

6,941

-

-

451,099

Gaven Morris

Director News, Analysis & Investigations

443,974

-

-

70,196

(18,740)

-

-

495,430

Judith Whelan

Director Regional & Local

398,161

-

-

21,003

10,632

-

-

429,796

Ita Buttrose

Chair

178,190

-

-

27,441

-

-

-

205,631

Jane Connors

Staff Elected Director

58,670

-

-

10,209

-

-

-

68,879

Kirstin Ferguson

Deputy Chair

87,970

-

-

8,357

-

-

-

96,327

Joseph Gersh

Director

58,670

-

-

5,574

-

-

-

64,244

Vanessa Guthrie

Director

58,670

-

-

5,574

-

-

-

64,244

Peter Lewis

Director

58,670

-

-

9,035

-

-

-

67,705

Georgina Somerset

Director

58,670

-

-

5,574

-

-

-

64,244

Donny Walford

Director

58,670

-

-

5,574

-

-

-

64,244

Senior executive remuneration

Senior executives are employees employed in a position equivalent to classification Groups 9 to 11 of the table in Schedule 1 to the Public Service Classification Rules 2000. The Corporation determined senior executives as executive directors who are not KMP.

Total remuneration bands

Number of senior executives

Short-term benefits

Post-employment benefits

Other long-term benefits

Termination benefits

Total remuneration

Average base salary

Average bonuses

Average other benefits and allowances

Average superannuation contributions

Average long service leave

Average other long-term benefits

Average termination benefits

Average total remuneration

$0 - $220,000

1

69,016

-

-

5,251

-

-

-

74,266

$220,001 - $245,000

-

-

-

-

-

-

-

-

-

$245,001 - $270,000

-

-

-

-

-

-

-

-

-

$270,001 - $295,000

-

-

-

-

-

-

-

-

-

$295,001 - $320,000

-

-

-

-

-

-

-

-

-

$320,001 - $345,000

-

-

-

-

-

-

-

-

-

$345,001 - $370,000

-

-

-

-

-

-

-

-

-

$370,001 - $395,000

1

299,593

-

-

50,688

28,393

-

-

378,674

$395,001 - $420,000

1

337,687

-

-

61,100

2,645

-

-

401,432

$420,001 - $445,000

-

-

-

-

-

-

-

-

-

$445,001 - $470,000

2

421,305

-

-

21,003

9,449

-

-

451,757

$470,001 - $495,000

1

440,024

-

-

21,003

10,706

-

-

471,732

$495,001 - …

-

-

-

-

-

-

-

-

-

Other highly paid staff remuneration

Other highly paid staff are employees who are neither KMP nor senior executive and whose total remuneration paid during the year exceeded $225,000.

Total remuneration bands

Number of senior executives

Short-term benefits

Post-employment benefits

Other long-term benefits

Termination benefits

Total remuneration

Average base salary

Average bonuses

Average other benefits and allowances

Average superannuation contributions

Average long service leave

Average other long-term benefits

Average termination benefits

Average total remuneration

$225,001 - $245,000

44

193,552

56

-

31,945

5,256

-

3,179

233,988

$245,001 - $270,000

24

195,572

926

-

33,704

5,202

-

19,161

254,564

$270,001 - $295,000

10

224,101

-

-

36,595

4,341

-

17,292

282,329

$295,001 - $320,000

7

232,631

-

-

31,253

11,414

-

29,111

304,409

$320,001 - $345,000

6

281,308

5,333

-

35,635

5,785

-

-

328,062

$345,001 - $370,000

6

274,591

-

-

40,888

4,779

-

33,239

353,497

$370,001 - $395,000

3

303,125

18,333

-

35,741

23,598

-

-

380,797

$395,001 - $420,000

6

202,019

8,750

-

28,938

4,009

168,110

411,826

$420,001 - $445,000

-

-

-

-

-

-

-

-

-

$445,001 - $470,000

1

333,509

-

-

57,068

72,245

-

-

462,822

$470,001 - $495,000

3

198,260

1,333

-

44,798

2,982

-

232,408

479,782