Senior executive remuneration
The Company’s approach to remuneration is designed to attract and retain the right people with the right expertise to deliver on the Company’s objectives and targets set out in its Corporate Plan. In particular, the Company’s executive team is comprised of individuals with the breadth and depth of experience required to deliver on the Company’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 Company’s Board. For FY19/20, 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 Company’s 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 the Company’s Corporate Plan endorsed annually by the Shareholder Ministers.
For FY 2020, performance was assessed against the following measures:
Deliverable | Weighting | Outcome |
Corporate KPIs set out in Corporate Plan | 15% | Achieved |
Safety (no serious incidents) | 15% | Achieved (1) |
Operations availability | 10% | Achieved |
OSDP on schedule | 20% | Substantially achieved (2) |
OSDP on budget | 5% | Achieved |
OSDP modernisation readiness for construction | 5% | Achieved |
ONDP progressed to plan | 15% | Achieved |
Access arrangements agreed | 10% | Achieved |
Financial (EBITDA) | 5% | Achieved |
(1) One low severity LTI
(2) Construction was substantially complete by end March 2020, however some aspects of equipment installation and testing were delayed due to impacts of the Covid-19 pandemic.
Remuneration for the MD & CEO and Senior Executives for FY 2020 and FY 2019 is shown in the table below:
Short-term benefits | Post-employment | Other long-term benefits | Termination benefits | Total remuneration | |||||
Base Salary (1) | Bonuses | Other benefits and allowances | Superannuation contributions (2) | Long service leave (3) | Other long-term benefits | ||||
Senior executives | $ | $ | $ | $ | $ | $ | $ | $ | |
Andrew Seaton (4) | 2020 | 533,886 | 85,584 | - | 12,000 | 15,127 | - | - | 646,597 |
2019 | 469,347 | 75,849 | - | 19,500 | 9,242 | - | - | 573,938 | |
David Knox (5) | 2020 | 446,271 | 72,889 | - | 19,245 | (19,457) | - | - | 518,948 |
2019 | 558,798 | 91,392 | - | 20,531 | 15,499 | - | - | 686,220 | |
Paul Bates | 2020 | 244,531 | 46,391 | - | 25,995 | 7,647 | - | - | 324,564 |
2019 | 238,554 | 41,811 | - | 26,192 | 14,722 | - | - | 321,278 | |
Phil Cornish | 2020 | 360,082 | 63,360 | 5,500 | 25,000 | 7,241 | - | - | 461,183 |
2019 | 336,097 | 57,699 | - | 25,000 | 4,695 | - | - | 423,491 | |
Adele Fraser (6) | 2020 | 52,740 | 29,301 | - | 5,151 | 2,695 | - | - | 89,887 |
2019 | - | - | - | - | - | - | - | - | |
Sally McLennan | 2020 | 278,252 | 50,842 | - | 25,000 | 6,954 | - | - | 361,049 |
2019 | 265,468 | 46,473 | - | 25,000 | 5,334 | - | - | 342,275 | |
Total executives | 2020 | 1,915,763 | 348,367 | 5,500 | 112,391 | 20,207 | - | - | 2,402,228 |
2019 | 1,868,264 | 313,224 | - | 116,223 | 49,492 | - | - | 2,347,203 | |
Total KMP | 2020 | 2,305,942 | 348,367 | 5,500 | 137,576 | 20,207 | - | - | 2,817,593 |
2019 | 2,262,702 | 313,224 | - | 147,384 | 49,492 | - | - | 2,772,802 | |
(1) Base salary includes accrued annual leave entitlements.
(2) Where annual superannuation contributions exceed $25,000 executives can elect to have some or all of the superannuation contributions above $25,000 paid as salary rather than superannuation.
(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) Andrew Seaton was appointed MD & CEO on 6 April 2020. He was previously the Company's Chief Financial and Commercial Officer.
(5) David Knox retired as the Company's MD & CEO on 3 April 2020 and his base salary includes annual leave paid out on termination.
(6) Adele Fraser became a KMP on 6 April 2020. Her part-year remuneration for 2020 is shown.
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https://www.transparency.gov.au/annual-reports/australian-naval-infrastructure-pty-ltd/reporting-year/2019-20-72