Our Remuneration Policy outlines CSC’s objectives and the structure of our remuneration agreements, including performance-based remuneration. CSC acknowledges the connection between good risk and customer outcomes and compensation, incentive and remuneration. In this context, customers include current and potential customers and employers. The policy is designed to:

• drive and reward the best possible risk (both financial and non-financial) management practices and customer outcomes
• ensure that poor conduct and poor risk outcomes are recognised and not rewarded.

This policy complies with the requirements of Prudential Standard SPS 510, Governance. It is approved by our Board and forms part of CSC’s risk management framework.

Our remuneration arrangements include measures of performance, a mix of forms of remuneration (for example, fixed and variable components, and case- and equity-related benefits) and timing and eligibility with reference to an employee’s role within the organisation.

We benchmark salaries against the Financial Institutions Remuneration Group’s (FIRG) market surveys. FIRG is a not-for-profit association of more than 120 banking and financial services organisations that shares anonymous remuneration data to establish market levels and trends. FIRG members match each of their staff members to around 1,200 job codes in FIRG’s General Remuneration Survey and in the case of senior executives to around 150 positions in the Industry Leaders Survey. FIRG distributes the survey data every six months. We use the data to determine if our staff are paid at market levels or whether a salary adjustment is needed. Our Board determines the remuneration of the CEO and may seek external expert assistance.

As provided by the legislation establishing CSC, the GAGSS Act, the Remuneration Tribunal determines the remuneration of CSC directors, including for members of Board committees and reconsideration committees. Remuneration is shown in the following tables.

Staff are employed under individual contracts or in accordance with an Enterprise Agreement which transferred to CSC upon the merger of ComSuper into CSC on 1 July 2015. Staff set annual performance objectives and personal development plans to enhance skills and professional development and to ensure that professional qualifications are maintained.

Our Performance and Development policy outlines that CSC is committed to building and sustaining a culture of strategically aligned performance and accountability. Actively planning and reviewing the performance of our staff happens throughout the year with a formal review taking place at the end of the financial year. A mandatory risk KPI which is relevant to an employee’s work must be successfully met as a prerequisite to being considered eligible for any variable component. The remuneration process is designed to encourage behaviour that aligns with CSC’s Values and that supports:

• protecting the interests, and meeting the reasonable expectations, of customers
• the long-term financial soundness of CSC and its subsidiaries
• CSC’s risk management framework.

CSC places importance on remuneration objectives that are clear, transparent, equitable and objectively determined.

Table 14. Remuneration of key CSC management personnel, 2019–20

Table 15. Remuneration of other highly paid CSC staff, 2019–20