The purpose of the Remuneration Report is to set out the principles, strategy and framework Snowy Hydro applies to remunerate key management personnel (KMP). The report demonstrates how the remuneration strategy is aligned to Snowy Hydro’s goals and strategic priorities, enabling performance-based reward and supporting the attraction and retention of high calibre Executives.

The framework is designed to attract, motivate and retain high calibre executives with the experience and skills to lead a large complex organisation. This framework is robust and consistent with contemporary market practice. Core to the Company’s remuneration strategy is a clear and direct link between pay, and both the organisation and the individual’s performance. This is achieved by:

• A remuneration framework which has a fixed component, as well as “at risk” components with short term (STI) and long term incentives (LTI). These incentives are only paid if agreed performance gates and Board approved stretch Key Performance Indicators (KPIs) are met;
• An annual review of the framework by independent advisors, including the specific performance measures under the STI and LTI programs; and
• Benchmarking of the framework against market practice.

The Company positions target total remuneration competitively against comparable organisations in the Australian market. Benchmarking is undertaken annually by independent advisors, and reviewed by the Snowy Hydro People and Culture Committee.

The report details financial year 2019 (FY2019) remuneration information for the year ended 30 June 2019 as it applies to KMP who are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly. Snowy Hydro has assessed KMP to include Board Directors, the Chief Executive Officer and Managing Director (CEO & MD) and selected Executives.

Table 1: FY2019 Key Management Personnel (KMP)

^{1 Sandra Dodds and Karen Moses were appointed as Non-Executive Directors on 1 July 2019 therefore there is no remuneration to report for the reporting period ending 30 June 2019.}

^{2 Nigel Clark ceased to be KMP on 30 June 2019.}

^{3 Michael Ihlein ceased to be KMP on 30 June 2019.}

^{4 Scott Mitchell was appointed as a Non-Executive Director on 26 March 2019.}