Annual Report - Bega Cheese

Financial Statements
Period Financial Ended Statements 30 June 2010
Notes Period to Ended the Financial 30 June Statements
2010
Notes to the Financial Statements
29. Remuneration Report (cont.)
The predetermined at risk criteria for Senior Executive Team members who participated in the Executive STI were
categorised as follows:
At risk criteria
% of total at risk
component (2)
2010 (1)
Base-line
Profit performance of the Company
Profit performance of specified operating divisions
Cultural and safety performance
Enhanced demand planning procedures
Commercial procurement cost reduction initiatives
Stretch-targets
Profit performance of the Company
Divisional cost saving and productivity improvement initiatives
Commercial procurement cost reduction initiatives
Cultural and leadership development
0-25%
0-13%
0-25%
0-13%
0-25%
0-13%
0-38%
0-13%
0-38%
(1) The Executive STI was introduced from 1 July 2009 and applied for the year ended 30 June 2010
(2) This is a range for the Company
No individual was entitled to more than 100% of their predetermined at risk component (i.e. not more than 25% of their
respective Base Salary). The final percentage of at risk payable to each individual member of the Senior Executive Team
was subject to the actual performance of the Company against the above pre-determined criteria as set for that individual.
After final assessment of the actual performance of the Company for the year ended 30 June 2010 against the above at risk
criteria the Executive Chairman approved awarding each of the Senior Executive Team between 66% and 85% of their
maximum entitlement to the at risk component of their total remuneration (i.e. being between 16% and 21% of their Base
Salary, not the maximum possible amount of 25% had all of the at risk criteria been met).
Tatura Milk
Whilst Aidan Coleman is a member of the Executive Chairman’s Leadership Team his remuneration is set by the Board of
Tatura Milk and paid by that entity. In setting Aidan Coleman’s remuneration the Tatura Milk Board applies the General
Remuneration Guidelines as set out above.
For the financial year ended 30 June 2009 Aidan Coleman participated in the Tatura Milk CEO’s Short Term Incentive
Scheme (“TMI CEO STI”). The TMI CEO STI only applied to the CEO with part of Aidan Coleman’s total remuneration ‘at
risk, being a maximum of 40% of his Base Salary. No other senior executive of Tatura Milk had an at risk component to their
2009 total remuneration and no discretionary bonuses were approved by the Board of Tatura Milk.
For the financial year ended 30 June 2010 Aidan Coleman and a number of other senior managers of Tatura Milk
participated in the Tatura Milk Short Term Incentive Scheme (“TMI STI”), which set out the at risk criteria for the participating
senior managers. Under the TMI STI, the at risk component of Aidan Coleman’s total remuneration represented a maximum
of 40% of his Base Salary.
Bega Cheese Limited 2010 Annual Report 56
Bega Cheese Limited 2010 Annual Report 56