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Directors’ Report
(continued)
Part B: FY2012 remuneration disclosures
a) Who this report covers
The following individuals, being the KMP’s, had the authority and responsibility for planning, directing and
controlling the activities of AHG and its controlled entities during the financial year ended 30 June 2012:
Name
Position
Non-executive and executive directors – refer pages 7 to 11 above.
P Mirams
R Nuich
D Rowland
G Kininmont
J Moroney
E Kavanagh
Chief Financial Officer (commenced employment 25 June 2012)
Chief Financial Officer (ceased employment 1 July 2012)
Company Secretary and General Counsel (appointed 11 August 2011)
GM Finance
GM Organisational Effectiveness
Chief Information Officer
b) Remuneration governance
The Remuneration and Nomination Committee is a committee of the Board. It is primarily responsible for
providing recommendations to the Board on:
• remuneration and incentive policies and practices; and
• specific recommendations on remuneration packages and other terms of employment for executive
directors, non-executive directors and certain senior executives.
The Corporate Governance Statement provides further information on the role of this committee. This is
available on AHG’s website.
The Managing Director, other executive directors and senior executives do not participate in any decision
relating to their own remuneration.
c) Executive remuneration strategy and structure
Remuneration strategy
The objective of the Group’s executive reward framework is to ensure reward for performance is
competitive and appropriate for the results delivered. The framework aligns executive reward with
achievement of strategic objectives and the creation of value for shareholders, and reflects current market
practice for delivery of reward. The Board aims to ensure that executive reward practices are aligned with
the following key criteria for good reward governance practices such that executive remuneration is:
• competitive and reasonable, enabling the company to attract and retain key talent;
• aligned to the company’s strategic and business objectives, and the creation of shareholder value;
• transparent;
• acceptable to shareholders; and
• aids in capital management needs.
Remuneration structure
During FY2012, the executive remuneration and reward framework provided a mix of fixed and variable
remuneration, and consisted of the following components:
• Fixed remuneration, comprised of base pay, superannuation and benefits;
• Short-term incentives (“STI”); and
• Long-term incentives (“LTI”) for selected executives.
The combination of these components comprised the total remuneration paid to KMP. The Remuneration
and Nomination Committee considers the level of remuneration and incentives to be paid each year.
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