29 May 2017
Managing Director-designate's contract and remunerationThe Board of Wesfarmers today announced details of the intended service agreement and remuneration terms for incoming Group Managing Director Rob Scott when he succeeds Richard Goyder in November 2017.
The key components of the remuneration package agreed with Mr Scott comprise:
fixed annual remuneration (FAR) of $2.5 million
eligibility for an annual reward opportunity under the company's Key Executive Equity Performance Plan (KEEPP) program of 200 per cent of FAR (or $5 million) for target performance and a reward opportunity of 300 per cent of FAR (or $7.5 million) for maximum performance.
The total remuneration package opportunity at target is therefore $7.5 million annually. In keeping with the intention of the new KEEPP program to incentivise long-term alignment with shareholders' interests, the Group Managing Director's cash component will be capped at 10 per cent of the KEEPP reward at target performance and will transition to zero in future years of the plan.
Mr Goyder's remuneration currently comprises FAR of $3.5 million and a total remuneration opportunity at target of $10.5 million.
Wesfarmers Chairman Michael Chaney said the Board was comfortable the Group's remuneration outcomes, particularly for its senior executives, over recent years have been reflective of Wesfarmers' performance.
"However we recognise changes in the market that have seen downward pressure on fixed pay levels for CEOs and reductions in overall reward opportunities," Mr Chaney said. "The Board and Mr Scott have discussed and recognised the expectations of Wesfarmers' many stakeholders regarding the remuneration levels of senior executives and believe that this package and those of other senior executives in the Group are appropriate and in line with contemporary market practice of peers."
Wesfarmers confirmed Mr Goyder's remuneration arrangements on retirement will be determined in line with those entitlements disclosed in the company's last remuneration report.
Key contractual terms and details of the annual remuneration that will apply are summarised in the table below.
Summary of Group Managing Director's key contractual termsItem | Details |
Term |
|
Commencement |
|
Fixed remuneration |
|
Variable (at risk) remuneration |
|
Non-solicitation / restrictions on future activities |
|
Notice, termination and termination payments |
|
For further information:
Media InvestorsCathy Bolt Aleksandra Spaseska
Media and External Affairs Manager General Manager, Investor Relations
+61 8 9327 4423 or +61 417 813 804 +61 8 9327 4416 or +61 488 911 678
cbolt@wesfarmers.com.au aspaseska@wesfarmers.com.au
Wesfarmers Ltd. published this content on 29 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 May 2017 23:06:16 UTC.
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