This report covers ANI’s Key Management Personnel (KMP) who have authority and responsibility for planning, directing and controlling the activities of the Company directly and indirectly throughout the year.

Non-executive director fees

All non-executive directors of ANI are appointed by the Commonwealth Government through the Shareholder Ministers.

Fees for non-executive directors are set through the determinations of the Commonwealth Remuneration Tribunal, an independent statutory body overseeing the remuneration of key Commonwealth offices. ANI is obligated to comply with the Tribunal’s determinations and plays no role in the consideration or determination of non-executive director fees.

Remuneration for non-executive directors for FY 2019 and FY 2018 is shown in the table below:

Managing Director/Chief Executive Officer remuneration

ANI’s Managing Director and Chief Executive Officer (MD/CEO) was appointed by the Commonwealth Government through the Shareholder Ministers.

The MD/CEO role has been declared by the Commonwealth Remuneration Tribunal as a Principal Executive Office (PEO) Band D under the Remuneration Tribunal Act 1973 (Cth). ANI’s MD/CEO remuneration has been determined and paid in accordance with the Remuneration Tribunal’s guidance and comprised two components - total fixed remuneration (TFR) and at-risk performance pay (Short Term Incentive or STI). TFR for FY 2019 was paid at the Remuneration Tribunal’s “Total Remuneration Reference Rate” (RR) for the office, and the MD/CEO was eligible for STI of up to a maximum of 20% of TFR.

Senior Executive remuneration

ANI’s approach to remuneration is designed to attract and retain the right people with the right expertise to deliver on ANI’s objectives and targets set out in its Corporate Plan. In particular, ANI’s executive team is comprised of individuals with the breadth and depth of experience required to deliver on ANI’s major projects and commercial outcomes, and to build a performance culture.

Remuneration of executive KMPs reporting to the MD/CEO (Senior Executives) is set by the MD/CEO and the ANI Board. For FY 2019, Senior Executive remuneration comprised TFR, and STI of up to a maximum of 20% of TFR.

TFR is set having regard to market factors, technical expertise, role scope and industry benchmarks, and has been informed by external benchmarking undertaken by remuneration consultants, AON Hewitt.

STI for the MD/CEO and Senior Executives is determined by the ANI Board having regard to company and individual performance in the achievement of the company scorecard. The company scorecard is set by the Board at the start of the financial year, and is aligned to the measures in ANI’s Corporate Plan endorsed annually by the Shareholder Ministers. For FY 2019, performance was assessed against the following measures:

Remuneration for MD / CEO and Senior Executives for FY 2019 and FY 2018 is shown in the table below ⁽¹⁾:

1. No payments were made to Senior Executives in relation to other benefits and allowances, other long-term benefits or termination benefits during the periods shown.
2. Base salary includes accrued annual leave entitlements.
3. Long service leave amounts relate to the movement in the provision for long service leave during the relevant period, which is calculated in accordance with Australian Accounting Standards.
4. Paul Bates became a KMP on 1 December 2017. His part-year remuneration for 2018 is shown.
5. Phil Cornish became a KMP on 15 January 2018. His part-year remuneration for 2018 is shown.
6. Sally McLennan became a KMP on 21 August 2017. Her part-year remuneration for 2018 is shown.
7. Andrew Seaton became a KMP on 20 July 2017. His part-year remuneration for 2018 is shown.