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 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).

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.

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.

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.