Page 52 - Bradken Annual Report 2013_Page flip

Basic HTML Version

Directors’ Report
30 June 2013
Bradken Limited
Directors' report (continued)
30 June 2013
D. 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
Role of the Human Resources Committee
Voting and comments made at the company's 2012 Annual General Meeting
Principles used to determine the nature and amount of remuneration
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 2013.
There were no changes to the remuneration framework in the current period compared to the previous period.
Consistent with the Company's normal process, external consultants AON Hewitt were again contracted to provide remuneration
advice to the Human Resources Committee. In the 2013 financial year AON Hewitt provided remuneration recommendations as
defined in section 9B of the Corporations Act 2001 and was paid $25,000 for these services (2012: $26,500). AON Hewitt have
confirmed the above recommendations were made free from undue influence by members of the Group's key management
personn l.
The Corporate Governance Statement provides further information on the role of this committee.
The Human Resources Committee is a committee of the Board. It is primarily responsible for making recommendations to the
Board on:
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
the over-arching executive remuneration framework and incentive plans.
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
Bradken Limited received more than 97% of "yes" votes on its remuneration report for the 2012 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 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:
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 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
capital management.
The remuneration report is set out under the following main headings:
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
Page 16
Bradken Limited