Appendix B: Executive remuneration
Executive remuneration disclosure
Introduction
The categories of officials covered by the disclosure are:
- key management personnel
- senior executives
- other highly paid staff, whose total remuneration exceeds the threshold remuneration amount for the reporting period.
Remuneration policy and practices
The Secretary's remuneration is set by the Remuneration Tribunal under section 13 of the Remuneration Tribunal Act 1973.
Remuneration for the Department's Senior Executive Service (SES) employees is established through individual determinations made under section 24(1) of the Public Service Act 1999.
Salary levels for SES employees are generally set at rates within a salary band applicable to each SES classification.
The Finance Enterprise Agreement 2019 (Finance Enterprise Agreement), provides remuneration and conditions for all non-SES employees.
The Finance Enterprise Agreement allows individual flexibility arrangements for remuneration arrangements, superannuation, working hours, leave, allowance, overtime rates and penalty rates.
Remuneration governance arrangements
The Leadership and Remuneration Subcommittee is a subcommittee of the Executive Board.
The Subcommittee is responsible for overseeing the Department’s remuneration (all staff) and SES development and SES recruitment.
The Subcommittee comprises members from across the Department as follows:
- Chair (Secretary)
- Deputy Chair (Deputy Secretary)—nominated by the Chair when needed
- The Deputy Secretaries (position-based members)
- Assistant Secretary, HR Branch (ex-officio member, position-based).
Key management personnel
The key management personnel (KMP) for Finance include the Minister for Finance, the Assistant Minister for Electoral Matters and the members of the Finance Executive Board. The Secretary chairs the Executive Board, supported by the four deputy secretaries of the Department as permanent members. In addition, membership of the board is offered for a period of nine months on a rotating basis to two senior members of staff—a first assistant secretary and assistant secretary from across the Department. The rotations occurred in February 2021 for the first assistant secretary and in April 2021 for the assistant secretary. A subsequent rotation occurred in June 2021 following the departure of Ms Johnston. Remuneration paid to members of the Finance Executive Board is disclosed in Table B4 below.
Table B2: Information about remuneration for senior executives
Short-term benefits | Post-employment benefits | Other long-term benefits | Termination benefits | Total Remuneration | |||
Remuneration Band | Number of Senior Executives | Average Base Salary | Average Other benefits and allowances | Average Superannuation contributions | Average Long Service leave | Average Termination Benefits | Average total remuneration |
$0 - $220,000 | 22 | 103,021 | 301 | 20,428 | (14,883) | - | 108,867 |
$220,001 to $245,000 | 9 | 196,399 | - | 36,499 | 5,097 | - | 237,996 |
$245,001 to $270,000 | 19 | 204,915 | - | 34,713 | 15,677 | - | 255,305 |
$270,001 to $295,000 | 11 | 232,892 | - | 38,660 | 9,173 | - | 280,726 |
$295,001 to $320,000 | 4 | 249,275 | - | 50,017 | 5,707 | - | 304,999 |
$320,001 to $345,000 | 2 | 266,657 | - | 49,866 | 7,044 | - | 323,568 |
$345,001 to $370,000 | 4 | 278,538 | - | 47,484 | 31,106 | - | 357,128 |
$370,001 to $395,000 | 0 | - | - | - | - | - | - |
The table includes all substantive senior executives who received remuneration during the reporting period, including those who have been promoted, transferred or ceased during the reporting period. Therefore, more than one individual may have filled a single position over the course of the year.
Long service leave on separation may create a negative leave expense for amounts accrued but not yet vested.
Table B3: Information about remuneration for other highly paid staff
Short-term benefits | Post-employment benefits | Other long-term benefits | Termination benefits | Total Remuneration | |||
Remuneration Band | Number of other highly paid staff | Average Base Salary | Average Other benefits and allowances | Average Superannuation contributions | Average Long Service leave | Average Termination Benefits | Average total remuneration |
$230,001 to $245,000 | 1 | 190,786 | - | 35,565 | 4,520 | - | 230,871 |
$270,001 to $295,000 | 2 | 119,779 | - | 24,987 | (12,882) | 154,019 | 285,904 |
The table above includes other highly paid staff who received remuneration during the reporting period, including those who have been promoted, transferred or ceased during the reporting period and includes individuals who were acting as SES for a portion of the year. Two others received a voluntary redundancy payment. Negative long service leave amounts are a result of voluntary redundancy termination payments and other adjustments.
Table B4: Information about remuneration for key management personnel
2020-21 Executive Remuneration Reporting | Short-term benefits | Post-employment benefits | Other long-term benefits | Termination benefits | Total Remuneratione | |||||||
Name | Position | Term as KMP | Base Salary a | Bonuses | Other benefits and allowances b | Superannuation contributionsc | Long Service leaved | Other Long-term | Termination benefits | |||
Rosemary Huxtable | Secretary | 1 July 2020 | - | 30 June 2021 | 722,875 | - | - | 104,499 | 11,732 | - | - | 839,106 |
Andrew Jaggers | Deputy Secretary | 1 July 2020 | - | 30 June 2021 | 357,647 | - | - | 67,586 | 2,764 | - | - | 427,997 |
Clare Walsh | Deputy Secretary | 13 July 2020 | - | 30 June 2021 | 345,007 | - | - | 58,475 | 6,314 | - | - | 409,796 |
Matthew Yannopoulos | Deputy Secretary | 1 July 2020 | - | 30 June 2021 | 401,541 | - | - | 71,282 | 6,613 | - | - | 479,436 |
Nathan Williamson | Deputy Secretary | 11 November 2020 | - | 30 June 2021 | 241,032 | - | - | 45,811 | 6,667 | - | - | 293,510 |
Stein Helgeby | Deputy Secretary | 1 July 2020 | - | 17 November 2020 | 151,394 | - | - | 27,936 | 7,165 | - | - | 186,495 |
Lucelle Veneros | First Assistant Secretary | 1 July 2020 | - | 29 January 2021 | 192,881 | - | - | 27,959 | 4,941 | - | - | 225,781 |
David De Silva | First Assistant Secretary | 1 July 2020 | - | 12 February 2021 | 199,958 | - | - | 33,545 | 6,067 | - | - | 239,570 |
Libor Pelecky | First Assistant Secretary | 26 February 2021 | - | 30 June 2021 | 92,645 | - | - | 16,755 | 2,622 | - | - | 112,022 |
Elizabeth Hickey | Assistant Secretary | 1 July 2020 | - | 26 March 2021 | 150,131 | - | - | 26,762 | 1,634 | - | - | 178,527 |
Patricia Johnston | Assistant Secretary | 16 April 2021 | - | 21 May 2021 | 23,985 | - | - | 3,211 | 566 | - | - | 27,762 |
Kim Baker | Assistant Secretary | 4 June 2021 | - | 30 June 2021 | 17,429 | - | - | 3,098 | 546 | - | - | 21,073 |
Consistent with past practice individuals on short-term acting arrangements are not included in the above table.
a Base salary includes salary paid and accrued, salary paid while on annual leave, salary paid while on personal leave, annual leave accrued and higher duties allowances.
b Other benefits and allowances include monetary benefits such as car allowances and non-monetary benefits such as provision of a carpark. These benefits have been rolled into base salary from 1 September 2019.
c For individuals in a defined contribution scheme (for example PSSAp and super choice), superannuation includes superannuation contribution amounts. For individuals in a defined benefits scheme (for example CSS and PSS), superannuation includes the relevant Notional Employer Contribution Rate and Employer Productivity Superannuation Contribution.
d Long service leave comprises the amount of leave accrued and taken in the period.
e Total remuneration is calculated on an accrual basis in accordance with AASB 119 Employee Benefits with the exception of the impact of any promotion on leave balances that existed prior to the promotion. This means there is a difference between the remuneration determined by the Remuneration Tribunal and the remuneration disclosed in this table and note E2 Key Management Personnel presented in the Financial Statements.
Table B5: Information about remuneration for Audit Committee members
Member name | Qualifications, knowledge, skills or experience | Number of meetings attended / total number of meetings during period of appointment | Total annual remuneration |
Prof Brendan Sargeant (external member) Chair, Audit Committee. Chair, Financial Reporting Sub-committee (FRSC) | Prof Sargeant joined the Audit Committee as Chair in January 2020. Prof Sargeant previously held the role of Associate Secretary, Department of Defence. In this role, Prof Sargeant was responsible for a major reform of Defence organisation and enterprise governance, planning, performance and risk management. | Audit Committee: 5/5 FRSC: 4/4 PRSC 5/5 RSC 5/5 | $44,750 ex GST |
Dr Wendy Southern (external member) Member, Audit Committee Chair, Performance Reporting Sub-committee (PRSC) | Dr Southern joined the Audit Committee in January 2021. Dr Southern previously held the roles of Deputy Director General at the Australian Security Intelligence Organisation and Deputy Secretary at both the Department of Health and the Department of Immigration and Border Protection. Her responsibilities ranged across strategic policy, program management, organisational governance, transformation and corporate management. | Audit Committee 2/2 FRSC: 1/1 PRSC 1/1 | $10,350 ex GST |
Ms Patricia Kelly (external member) Member, Audit Committee Member, FRSC | Ms Kelly joined the Audit Committee in January 2021. Ms Kelly previously undertook a number of senior APS roles with a focus on performance improvement, digital transformation, risk management and financial efficiency, most recently as Director-General of IP Australia (2013-2018). | Audit Committee 2/2 FRSC 1/1 | $9,450 ex GST |
Ms Jennifer Clark (external member) Deputy Chair, Audit Committee Chair, PRSC | Ms Clark joined the Audit Committee in December 2015 and was appointed as the Deputy Chair in March 2017. Ms Clark’s term concluded in December 2020. Ms Clark has an extensive background in business, finance and governance through her career as a Non-Executive Director and Investment Banker. Her banking experience included advisory roles to the Commonwealth Government. | Audit Committee: 3/3 PRSC: 5/5 | $25,368.75 ex GST |
Mr Ian McPhee AO PSM (external member) Member, PRSC | Mr McPhee joined the Audit Committee in January 2017. From 2005 to 2015, Mr McPhee was the Auditor-General for Australia. Mr McPhee was responsible for discharging the responsibilities of the Auditor-General Act 1997 including the audits of the financial statements of all Australian Government controlled entities and a program of some 50 performance audits annually. | Audit Committee: 5/5 PRSC: 6/6 | $33,660 ex GST |
Ms Gayle Ginnane (external member) | Ms Ginnane joined the Audit Committee in January 2017. Her term concluded in December 2020. Ms Ginnane was the Chief Executive Officer of the Private Health Insurance Administration Council with regulatory responsibility for the private health insurance industry until May 2008. Ms Ginnane is also a member on a range of other boards and audit committees. | Audit Committee: 3/3 | $13,860 ex GST |
Mr Nathan Williamson (departmental member) Audit Committee and PRSC | Mr Williamson joined the Audit Committee in January 2021. | Audit Committee: 2/2 PRSC: 1/1 | N/A |
Ms Amanda Lee (departmental member) Audit Committee and FRSC | Ms Lee joined the Audit Committee in January 2019. | Audit Committee: 5/5 FRSC: 4/4 | N/A |
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https://www.transparency.gov.au/annual-reports/department-finance/reporting-year/2020-21-52