AWB Limited - 2004 Annual Report

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2004 24. DIRECTOR AND EXECUTIVE DISCLOSURES (continued) (a) Remuneration of specified directors and specified executives by the consolidated entity (continued) The following tables provides the details of all directors of the company (specified directors) and the five or more executives of the consolidated entity with the greatest authority (specified executives) and the nature and amount of the elements of their remuneration for the year ended 30 September 2004: PRIMARY POST EMPLOYMENT Long–term Superannuation Salary and fees incentive 1 Other 2 benefits Total $ $ $ $ $ Specified directors Non–Executive Brendan Stewart (Chairman) 186,507 – – 16,786 203,293 Robert Barry (Deputy Chairman) 96,639 – – 7,693 104,332 Steve Chamarette 40,065 – – 10,016 50,081 (appointed 11 March 2004) Brendan Fitzgerald 50,145 – – 29,120 79,265 Laurie Marshall 30,000 – – 2,700 32,700 (resigned 11 March 2004) Xavier Martin 72,720 – – 6,545 79,265 Warrick McClelland 31,706 – – 47,559 79,265 Christopher Moffet 72,720 – – 6,545 79,265 Peter Polson 91,854 – – 8,267 100,121 Kerry Sanderson 72,720 – – 6,545 79,265 John Simpson 72,720 – – 6,545 79,265 John Thame 72,720 – – 6,545 79,265 Executive Andrew Lindberg (Managing Director) 783,293 402,167 304,566 105,159 1,595,185 Total, all specified directors 1,673,809 402,167 304,566 260,025 2,640,567 1 A long-term incentive plan for the Managing Director was established in the 2002 financial year, whereby the Managing Director was given the opportunity to receive cash incentives by participating in the plan. Under the plan, notional performance rights are issued to the Managing Director. The terms and conditions of the plan are consistent with the Performance Rights Plan except that the benefit is delivered in cash. The fair value of the notional performance rights is calculated at each reporting date using a Black–Scholes model and allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed above is the portion of the fair value of all the notional performance rights that have been granted. On 30 May 2002, a total of 107,692 notional performance rights were issued. The performance period for these rights commenced on 1 October 2004 and ends on 1 October 2006. On 1 October 2002, a further 125,641 notional performance rights were issued. The performance period for these rights commences on 1 October 2005 and ends on 1 October 2007. On 1 October 2003, a further 142,450 notional performance rights were issued. The performance period for these rights commences on 1 October 2006 and ends on 1 October 2008. 2 “Other” remuneration includes an amount paid on renewal of Mr Lindberg's contract and an amount paid as part of sign–on fee from his previous contract. It also includes motor vehicle allowances subject to fringe benefits tax. 80
24. DIRECTOR AND EXECUTIVE DISCLOSURES (continued) (a) Remuneration of specified directors and specified executives by the consolidated entity (continued) PRIMARY POST EQUITY OTHER EMPLOYMENT Amortised Short–term value of Retention incentive Super– performance and Salary (2002/03 Non annuation rights termination and fees year) 3 monetary 4 Other 5 benefits issued 6 benefits 7 Total $ $ $ $ $ $ $ $ Specified executives Richard Fuller, General Manager, 259,895 – 1,008 23,153 11,148 11,446 – 306,650 Executive and Company Secretary Peter Geary, General Manager, 418,828 – 2,290 30,273 35,138 20,603 – 507,132 Trading and Commodities Jill Gillingham, General Manager, 413,751 – 153 4,566 67,000 20,603 – 506,073 Supply Chain, Technology and Business Processes Paul Ingleby, Chief Financial Officer 616,520 – 3,630 26,984 11,148 34,325 – 692,607 Marcus Kennedy, General Manager, 412,520 – 1,140 68,816 11,148 11,910 – 505,534 Financial Services John Maher, General Manager, 334,551 – 1,879 18,913 20,436 – 125,000 500,779 Network Operations Sarah Scales, General Manager, 435,415 – 153 7,168 11,437 17,503 – 471,676 AWBI Charles Stott, General Manager, 414,836 – 2,005 4,566 11,148 16,489 – 449,044 Rural Services Michael Thomas, General Manager, 338,219 – 3,389 – 35,000 4,254 – 380,862 Corporate Mark Allison, Managing Director 84,023 – – 26,946 12,582 – 875,326 998,877 Landmark (resigned 27 November 2003) Total, all specified executives 3,728,558 – 15,647 211,385 226,185 137,133 1,000,326 5,319,234 3 The STI component of remuneration in 2004 relates to performance incentives that would have been paid in the current financial year. Cash and long–term incentive payments are granted annually, after the end of the year. The grant date is tied to the performance appraisal, which, for the prior year, was completed after 30 September 2003. The specific service and performance criteria are set out earlier in this note. During this reporting period, no incentives were paid to executives. The STI program was suspended in relation to the 2003 financial year in recognition of the very tough operating conditions encountered during that period. An accrual has been made in the financial statements, based on an estimate of the incentives to be paid in respect of the year ended 30 September 2004. The actual incentives to be paid have not been determined at the date of this report, but are estimated to be in the order of $1.8 million. The incentives will be disclosed as remuneration in the 2005 financial report. 4 Interest free portion of loan under the employee share schemes (refer Note 30). 5 “Other” remuneration in the case of specified executives, includes motor vehicles, housing benefits and other allowances subject to fringe benefits tax. 6 The fair value of the rights is calculated at the date of grant using a Black–Scholes model and allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed above is the portion of the fair value of all the rights that have been granted. Directors are not entitled to participate in performance rights plans. 7 A termination payment was made to the former Managing Director of Landmark, Mark Allison (resigned 27 November 2003). A retention payment was made to Mr Maher following the acquisition of Landmark. 81
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Annual Report 2004
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Who We Are AWB Limited (AWB) is Aus
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Finance AWB harvest finance book pe
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Five Year Summary 2004 2003 2002 20
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Chairman’s and Managing Director
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To continue building its capability
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Pool Management Services Highlights
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AWB National Pool participants. AWB
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Landmark Highlights Integrated Land
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the integration, Landmark has reloc
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Finance and Risk Management Highlig
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Finance Limited, a wholly owned, ba
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Grain Acquisition and Trading Highl
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through the AWB Geneva office, both
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Supply Chain & Other Investments Hi
Page 31 and 32: The Five Star Feed Mill, located on
Page 33 and 34: Our People AWB employs over 2,700 p
Page 35 and 36: More than 70% of AWB’s employees
Page 37 and 38: Our Social Commitment Together with
Page 39 and 40: Social service providers While not
Page 41 and 42: 7. Richard Fuller General Manager,
Page 43 and 44: Independence All of the current 11
Page 45 and 46: Services Agreement Committee The Se
Page 47 and 48: its observance provides the foundat
Page 49 and 50: Promotion Committee and Founding Ch
Page 51 and 52: 1. Brendan Stewart Chairman, Non-ex
Page 54 and 55: DIRECTORS' REPORT Your directors su
Page 56 and 57: DIRECTORS' REPORT (continued) REMUN
Page 58 and 59: DIRECTORS' REPORT (continued) DIREC
Page 60 and 61: DIRECTORS' REPORT (continued) DIREC
Page 62 and 63: STATEMENT OF FINANCIAL PERFORMANCE
Page 64 and 65: STATEMENT OF CASH FLOWS FOR THE YEA
Page 66 and 67: NOTES TO AND FORMING PART OF THE FI
Page 106 and 107: INDEPENDENT AUDIT REPORT TO THE MEM
Page 108 and 109: SHAREHOLDER COMMUNICATION FINANCIAL
Page 110 and 111: GLOSSARY AWB Basis Pool AWB Basis P
Page 112: Head Office 380 La Trobe Street Mel
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AWB Limited - 2004 Annual Report

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