ASX ANNOUNCEMENT Bega Cheese Limited ... - Open Briefing

Directors’ Report (cont.)
Year Ended 30 June 2011
Tatura Milk
Whilst Aidan Coleman was CEO at Tatura Milk, his remuneration was set by the Board of Tatura Milk and was paid
by that entity until his appointment as the CEO of Bega Cheese in May 2011. In setting Aidan Coleman’s
remuneration, the Tatura Milk Board applied the General Remuneration Guidelines as set out above.
With effect from 10 May 2011 when Aidan Coleman joined Bega Cheese as CEO, Paul van Heerwaarden, under the
direction of the Board, was appointed Executive General Manager and assumed the responsibility previously held by
Aidan Coleman for remuneration principles and procedures.
At Risk Performance-based Remuneration - Tatura Milk Short Term Incentive Scheme (Tatura STI)
For the financial year ended 30 June 2011 Aidan Coleman and Paul van Heerwaarden participated in the Tatura STI,
which set out the at risk criteria for the participating senior Tatura Milk managers.
Under the Tatura STI, the at risk component of Aidan Coleman’s total remuneration represented a maximum of 40%
of his Base Salary.
Aidan Coleman left Tatura Milk on 9 May 2011 and joined Bega Cheese from 10 May 2011. However, as part of his
Employment Contract with Bega Cheese, and recognising that he had been with Tatura Milk for the vast majority of
the financial year, it was agreed that Aidan Coleman would retain entitlement to his Tatura STI as if he had remained
at Tatura Milk until the end of the financial year. Under this agreement, Aidan Coleman would not participate in or
benefit from any payments made under Bega Cheese’s 2011 STI.
Under the Tatura STI, the at risk component of Paul van Heerwaarden’s total remuneration represented a maximum
of 25% of his base salary at 30 June 2011.
The final at risk outcome for each of Aidan Coleman and Paul van Heerwaarden was measured against predetermined
at risk criteria across three specific areas of performance, with the final outcome for the year ended
30 June 2011 being:
Element of Business and
Profit Performance
At Risk Achieved At Risk Achieved
Aidan Coleman Paul van Heerwaarden
Team objectives 60% 54% 60% 54%
Quality performance 20% 16% 20% 16%
Safety performance 20% 0% 20% 0%
Bega Cheese Limited 2011 Annual Report 18