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CIMIC Group Limited Annual Report 2016 |
Remuneration Report
Remuneration Report
SCOPE
The information provided in this Remuneration Report has been audited and is in accordance with the requirements of the Corporations
Act.
For the purposes of this Remuneration Report, the Key Management Personnel (KMP) are referred to as either Senior Executives (which
includes the Executive Chairman) or Non-executive Directors (including Alternate Directors). Details of the Senior Executives (as at 31
December 2016) are set out below. Details of the current and former Non-executive Directors as at 31 December 2016 are set out on
page 37.
SENIOR EXECUTIVE REMUNERATION – POLICY AND APPROACH
REMUNERATION PRINCIPLES
The key remuneration principles that underpin CIMIC’s approach to Senior Executive remuneration are to:
•
align to Group principles and business needs;
•
link performance to reward; and
•
promote behaviours that deliver Group sustainability and align to shareholder interests.
REMUNERATION COMPONENTS
Senior Executive remuneration for the 2016 Financial Year was delivered as a mix of fixed and variable remuneration as set out in the
following table:
Fixed
Fixed remuneration
Base salary, non-monetary benefits and superannuation (as applicable).
Variable
Short-Term Incentive (STI) Annual cash incentive paid to eligible Senior Executives for performance against
approved and measurable objectives.
Long-Term Incentive (LTI)
An option plan vesting 2 years after award and available to exercise over 3 years.
Awards are provided to select Senior Executives on a periodic basis and at the
discretion of the Company.
APPROACH TO SETTING REMUNERATION
Individual remuneration is determined by reference to:
•
Group policy regarding the mix of fixed and variable remuneration;
•
performance and experience of the individual;
•
comparable jobs within the Group; and
•
remuneration for comparable jobs amongst peer companies.
The Remuneration and Nomination Committee considers and proposes the remuneration of the CEO (including any incentive awards) to
the Board for approval, and receives and reviews the remuneration (including any incentive awards) approved by the CEO for any other
Senior Executives.
SENIOR EXECUTIVE REMUNERATION
–
COMPONENTS IN DETAIL
The Senior Executives as at 31 December 2016 are identified in the table below.
Executive Directors
Marcelino Fernández Verdes
Executive Chairman
Appointed as CEO on 13 March 2014. Elected Executive Chairman
on 11 June 2014. Previously a Non-executive Director from
10 October 2012 to 13 March 2014. On 18 October 2016, Mr
Fernández Verdes stepped down as CEO and Mr Valderas was
appointed as CEO. Mr Fernández Verdes has continued in his
capacity as Executive Chairman.
Adolfo Valderas
CEO and Managing Director
Appointed as Chief Operating Officer on 4 December 2013 and as
Deputy CEO on 28 October 2015. On 18 October 2016, Mr
Valderas was appointed as CEO and ceased to be Chief Operating
Officer. Appointed as Managing Director on 27 October 2016.
Executive
Angel Muriel Bernal
CFO, Chief Development
Officer and Managing
Director of Pacific
Partnerships
Appointed as Chief Development Officer and Managing Director of
Pacific Partnerships on 1 July 2014. Appointed as CFO and became
a KMP on 23 July 2015.
The remuneration components described in this section apply to Mr Valderas and Mr Muriel Bernal. The remuneration arrangements
applicable to Mr Fernández Verdes are described separately in the ‘Remuneration – Executive Chairman’ section on page 32.
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