2009-10 Annual Report - Australia Post

27 Key management personnel remuneration and retirement benefits (continued)
(b) Compensation policies for key management personnel (continued)
executive compensation
executive officers are those who are concerned with, or take part in, the management of entities in the consolidated group (excluding the managing
director and chief executive officer). compensation arrangements for senior executives are reviewed and determined by the managing director and
chief executive officer, within parameters set by the human resources committee. advice is sought from independent specialised compensation
consultants to ensure that payments to executives are in line with market practice and are competitively placed to attract and retain necessary talent
for the work required by these roles.
the board is responsible for the remuneration arrangements for the managing director and chief executive officer. in this role it has adopted a
set of principles approved by the remuneration tribunal designed to link the level of remuneration with the financial and operational performance
of the corporation.
on a periodic basis advice is sought from independent specialised remuneration consultants on the structure of remuneration packages and
the quantum of increases that apply in other comparable australian corporations. on the basis of this advice, the managing director and chief
executive officer ensures that payments to other senior executives are in line with market practice and are competitively placed to attract and retain
the necessary talent for the work required by these roles. incentive rewards for the managing director and chief executive officer and other senior
executives for meeting or exceeding specific key annual business objectives are linked to the annual business plan at a corporate and individual level.
Measures and targeted achievement levels are reviewed each year to reflect changes in the business priorities for the forthcoming year. the
measures include financial, customer satisfaction, employee engagement and other individual measures that support the key business objectives.
Before a reward is payable, a threshold must be reached, according to predefined measures. Both the managing director and chief executive officer
and other senior executives are employed under individual contracts of employment that are not limited to a specific duration. continuation of
employment is subject to ongoing satisfactory performance.
Where australia post terminates the managing director and chief executive officer’s or other senior executive’s employment for reasons other
than performance or misconduct, they are entitled to: in the case of the managing director and chief executive officer, six months’ payment in lieu
of notice and at the board’s discretion, a termination payment which, including any payment in lieu of notice, cannot exceed 12 months’ annual base
salary; and for other senior executives, 90 days’ payment in lieu of notice and a termination payment calculated on four weeks for each of the first
five years of employment and three weeks for every year thereafter to a maximum of 84 weeks, including the payment in lieu of notice. all of the
above payments are based upon annual base salary.
(c) other transaction and balances with key management personnel
there were no significant transactions between the corporation and key management personnel. any transactions were of a trivial nature.
(d) Compensation of key management personnel by category
short-term benefits
post-employment benefits
other long-term benefits
termination benefits
2010
$
8,231,632
1,567,138
143,448
–
consolidated corporation
2009
$
7,670,058
1,091,362
199,051
–
2010
$
8,231,632
1,567,138
143,448
–
2009
$
7,670,058
1,091,362
199,051
–
total compensation 9,942,218 8,960,471 9,942,218 8,960,471
AustrAliA Post AnnuAl rePort 2009–10 | Financial and statutory reports 81