Bradken Limited Annual Report 2015 - page 44

9 l BRADKEN LIMITED ANNUAL REPORT 2015
DIRECTORS’ REPORT
Bradken Limited
Directors' report (continued)
30 June 2015
C. Remuneration report
(a) Introduction
(d) Service agreements
(b) Principles used to determine the nature and amount of remuneration (e) Share-based compensation
(c) Key management personnel remuneration disclosure
(f) Additional information
(a)
Introduction
Role of the Human Resources Committee
Voting and comments made at the company's 2014 Annual General Meeting
(b)
Principles used to determine the nature and amount of remuneration
reflects competitive reward for contribution to growth in shareholder wealth
Non-Executive Director fees
provides a clear structure for earning rewards
remuneration levels of the Managing Director, executive directors and other key management personnel; and
the over-arching executive remuneration framework and incentive plans.
The objective of the Group's executive reward framework is to ensure reward for performance whilst maintaining competitiveness
with the market and appropriateness for the results delivered. The framework aligns executive reward with achievement of
strategic objectives and the creation of value for shareholders, and conforms with market best practice for delivery of reward.
The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:
In the 2015 financial year there was no external benchmarking conducted to provide remuneration recommendations as defined
in section 9B of the
Corporations Act 2001
.
In the 2014 financial year AON Hewitt provided remuneration recommendations and were paid $19,080 for these services. AON
Hewitt confirmed these recommendations were made free from undue influence by members of the Group's key management
personnel.
The remuneration report is set out under the following main headings:
competitiveness and reasonableness
acceptability to shareholders
transparency
Bradken Limited received more than 89% of "yes" votes on its remuneration report for the 2014 Financial year.
The Company did not receive any specific feedback at the AGM. No other correspondence was received throughout the year
pertaining to the remuneration report.
provides recognition for contribution.
The information provided under headings (b) to (e) includes the remuneration disclosures that are required under the Accounting
Standard AASB 124
Related Party Disclosures
. These disclosures have been transferred from the financial report and have
been audited. Information provided in this remuneration report has been audited as required by section 308(3C) of the
Corporations Act 2001
.
Alignment to shareholders' interests:
Alignment to participants' interests:
focuses on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant return on assets as well as focusing the executive on key non-financial drivers of value
rewards capability and experience
attracts and retains high calibre executives.
has economic profit as a core component of plan design
The Corporate Governance Statement provides further information on the role of this Committee.
capital management.
This report details the Bradken Group’s remuneration objectives, practices and outcomes for Non-Executive Directors, the
Managing Director / Chief Executive Officer and other key management personnel of the Group for the year to 30 June 2015.
There were no changes to the remuneration framework in the current period compared to the previous period.
performance linkage / alignment of executive compensation
The Human Resources Committee is a Committee of the Board. It assists the Board to exercise sound governance in Human
Resources matters. In the Remuneration area it is primarily responsible for making recommendations to the Board on:
Its objective is to ensure that remuneration policies and structures are fair and competitive and aligned with the long-term
interests of the Company. In doing this, the Human Resources Committee seeks advice from independent remuneration
consultants.
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