Go to top of page

Remuneration Principles

Our Remuneration Strategy Framework is founded on the desire to align Executive remuneration with the creation of value for shareholders and is underpinned by the following seven principles:

● Strategically aligned;

● Competitive;

● Balanced;

● Differentiated;

● Linked to performance;

● Consistent but able to be customised; and

● Simple and fair.

Principle 1 - Strategically aligned

  • Performance measures are aligned to the Corporate Plan through a set of short and long term KPIs.
  • Performance measures are consistently and meaningfully cascaded through Business Unit strategies to individual KPIs, goals and objectives, in a timely and transparent manner.

Principle 2 - Competitive

  • Reward positioned to provide a competitive remuneration package to attract, motivate and retain quality staff.
  • Targeting the median of a defined and consistently applied peer group consisting of comparable companies for Total Aggregate Remuneration, but with flexibility to position 15% above and 10% below the median based on the requirements of the role and the skills and experience of individuals in the role.

Principle 3 - Balanced

  • Deliver a balance between fixed and variable pay considering market practice for each role and job level.
  • Variable pay will be appropriately balanced between short and long term incentives to reflect strategic goals.
  • Incentives will also balance a focus on financial and non-financial metrics. Any non-financial metrics will be strongly tied to value creation for the organisation.

Principle 4 - Differentiated

  • Provide remuneration outcomes that are materially different at varying levels of performance, allowing for up to two times upside on variable pay for top performers relative to on-target performers.

Principle 5 - Linked to performance

  • Create a clear link between variable pay and performance, aligning variable pay outcomes to a combination of corporate, business and individual objectives.
  • Ensure the combination and weighting of measures reflects the relative importance of each measure.

Principle 6 - Consistent but able to be customised

  • A consistent framework is used across the Group - to support equitable outcomes, but to also drive collaboration across the business - with the ability to customise based on business unit needs and talent market considerations.
  • Reward systems should drive a shared view and language of high performance across the Group with aligned performance rating systems, and calibration processes across the organisation.
  • Additional incentive plans will only be implemented where a Group plan (allowing for BU customisation) is not effective or is not fit for purpose.

Principle 7 - Simple and fair

  • The remuneration structure and mechanics should be simple, transparent, and easy to communicate.
  • Some level of discretion is considered fair, given potential changes to priorities over a performance period.
  • Remuneration arrangements should be applied in an equitable (though not necessarily equal) manner and be non-discriminatory.

Visit

https://www.transparency.gov.au/annual-reports/snowy-hydro-limited/reporting-year/2018-2019-28