Australia Post Annual Report 2008–09

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Notes to and forming part of the Financial Report for the year ended 30 June 2009 26 Segment information (continued) Use of fair value accounting As outlined in note 1 to these accounts, the group uses cost as the basis for valuing land and buildings for its statutory accounts. Were fair values applied to land and buildings, the total segment assets would be as follows. Letters & associated services Parcels & logistics Agency services & retail merchandise Other and unallocated 94 Australia Post Annual Report 2008–09 | Financial and statutory reports 2009 $m 1,676.6 1,130.6 484.6 1628.8 2008 $m 1,858.1 1,151.7 552.2 2,717.5 Total 4920.6 6,279.5 27 Key management personnel remuneration and retirement benefits (a) Details of key management personnel (i) Directors David Mortimer Chairman (non-executive) Mark Birrell Deputy Chairman (non-executive) Graeme John Managing Director Margaret Gibson Director (non-executive) Sandra McPhee Retired as Director (non-executive) 12 April 2009 Thomas Phillips Retired as Director (non-executive) 22 November 2008 Ian Warner Director (non-executive) Mark Darras Appointed as Director (non-executive) 31 October 2008 William Mansfield Appointed as Director (non-executive) 31 October 2008 (ii) Executives Alec Ceselli General Manager, Post Logistics – resigned from role 17 April 2009 Mark Howard General Manager, Corporate Infrastructure Services Division James Marshall General Manager, Mail & Networks Division Rodney McDonald Group Manager, Human Resources Peter Meehan Chief Finance Officer Bill Mitchell General Manager, Commercial Division Terry Sinclair General Manager, Corporate Development – appointed 1 January 2008 (b) Compensation policies for key management personnel The performance of the group depends on the quality of its directors and executives. To achieve its financial and operational objectives, the group must attract, motivate and retain highly skilled directors and executives. In accordance with best practice corporate governance, the structure of non-executive director and executive compensation is separate and distinct. Director Compensation The compensation of the corporation’s non-executive directors is determined independently by the Commonwealth Remuneration Tribunal. Refer to the executive compensation section below for details of the managing director’s compensation arrangements. Remuneration levels for Australia Post’s non-executive directors for 2008–09 were as follows: Chairman Deputy Chairman Directors Audit Committee Chairman Audit Committee Member Details of individual amounts received in 2008–09 by each non-executive director are provided in part (e) of this note. $ 153,600 85,685 76,810 17,750 8,875
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). Compensation arrangements for senior executives are reviewed and determined by the managing director, 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. In doing so 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 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 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 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’s or another senior executive’s employment for reasons other than performance or misconduct, they are entitled to: in the case of the managing director, 60 days’ payment in lieu of notice and a termination payment of 1.5 times 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 on annual base salary. (c) Other transactions 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 2009 $ 7,670,058 1,091,362 199,051 – Consolidated Corporation 2008 $ 7,936,377 1,048,301 290,846 – 2009 $ 7,670,058 1,091,362 199,051 – 2008 $ 7,936,377 1,048,301 290,846 – Total compensation 8,960,471 9,275,524 8,960,471 9,275,524 Australia Post Annual Report 2008–09 | Financial and statutory reports 95
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1809 2009 Australia Post Annual Rep
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Over the past 200 years, Australian
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Our business Celebrating 200 years
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For 200 years, we have developed ou
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We handled 5.3 billion items of mai
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Our business Managing Director’s
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Mail volumes m 6,000 5,000 4,000 3,
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Our business Performance against ta
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Core businesses Australia’s posta
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Core businesses Letters & associate
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Collaborative solutions across the
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Rewarding customer loyalty Australi
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Core businesses Agency services & r
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1968 Behind the front counter of th
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Sending home comforts to the world
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Core businesses Parcels & logistics
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1936 Transporting mail from the SS
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Expanding Business, Naturally When
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Corporate responsibility From a wor
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Corporate responsibility Highlights
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Employment by occupation % Administ
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1950s A postie delivering mail in s
Page 45 and 46: Human Resources Committee Incorpora
Page 47 and 48: Treasury A comprehensive and pruden
Page 49 and 50: Mark Darras LLM, BA LLB, BEd Direct
Page 51 and 52: Contents - Financial and statutory
Page 53 and 54: Statements by directors for the yea
Page 55 and 56: Australia Post Annual Report 2008-0
Page 57 and 58: Balance sheet as at 30 June 2009 No
Page 59 and 60: Cashflow statement for the year end
Page 61 and 62: Schedule of contingencies as at 30
Page 63 and 64: Reference Title Nature of change to
Page 65 and 66: Where settlement of any part of the
Page 67 and 68: (iii) Translation of group companie
Page 69 and 70: (ii) Held-to-maturity investments N
Page 71 and 72: is increased to its recoverable amo
Page 73 and 74: 2 Revenues and other income Revenue
Page 75 and 76: 4 Finance costs Bonds (1) Interest
Page 77 and 78: 5 Income tax (continued) (e) Unreco
Page 79 and 80: 9 Non-current assets - trade and ot
Page 81 and 82: 11 Investments in jointly controlle
Page 83 and 84: 12 Superannuation (continued) (v) C
Page 85 and 86: 13 Analysis of property, plant & eq
Page 87 and 88: 15 Investment properties Opening ba
Page 89 and 90: 20 Provisions Current provisions An
Page 91 and 92: 22 Analysis of total equity (contin
Page 93 and 94: 24 Dividends paid Final ordinary di
Page 95: 26 Segment information (continued)
Page 99 and 100: 27 Key Management personnel remuner
Page 101 and 102: 28 Related parties (continued) Tran
Page 103 and 104: 29 Financial and capital risk manag
Page 111 and 112: 32 Corporate information The financ
Page 113 and 114: Auditor-General’s report - perfor
Page 115 and 116: Domestic letter service monitor for
Page 117 and 118: Survey certification for the year e
Page 119 and 120: Reserved/non-reserved services for
Page 121 and 122: Australian Postal Corporation Act 1
Page 123 and 124: Statutory reporting requirements fo
Page 125 and 126: Consultative arrangements The Stake
Page 127 and 128: Australia Post - the statistics for
Page 129 and 130: 5 Mail delivery network Private hou
Page 131 and 132: 9 Overall letter service performanc
Page 133 and 134: Index Australia Post Annual Report
Page 135 and 136: I (continued) interest 11, 57 inter
Page 137 and 138: Contact details Australia Post Head
Page 139 and 140: Stamp gallery 2008-09 Australia Pos
Page 141 and 142: AAT: International Polar Year 2007-
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Australia Post Annual Report 2008–09

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