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CIMIC Group Limited Annual Report 2016 |
Remuneration Report
SUMMARY OF EXECUTIVE SERVICE AGREEMENTS
Mr Fernández Verdes
The key terms of Mr Fernández Verdes’ ESA are:
•
fixed allowance amounts as per the table below. The ESA was renegotiated for 2017 and subsequent years with the same terms and
conditions and reflects the change in dual roles of CEO and Executive Chairman to Executive Chairman. For 2017, and any subsequent
years, the allowance amount will increase in line with the CPI.
Year
Fixed allowance amount (A$) Reason
2014
370,000 For 10 months service
2015
495,000 Effective 1 January 2015
514,416 Effective 1 April 2015 to accommodate increase in Fringe Benefits Tax
2016
522,132 Effective 1 January 2016 to accommodate 1.5% CPI increase
2017
528,920 Effective 1 January 2017 to accommodate 1.3% CPI increase
•
a one-off award of SARs in 2014 as described in the ‘Remuneration – Executive Chairman’ section of this Remuneration Report.
Mr Fernández Verdes is not eligible to participate in the formal STI or LTI;
•
provision for the payment of a discretionary bonus at any time during the course of employment, as per the variation to the ESA
approved by the Board on 3 December 2016;
•
either party may terminate the ESA, the period of notice being the minimum period required by applicable legislation;
•
there is no specified term; and
•
there are no specified payments to be made on termination (apart from any payments in lieu of notice and any payable statutory
entitlement).
Other Senior Executives
Remuneration and other terms of employment for all other Senior Executives are formalised in ESAs.
The key standard terms of the ESAs for Senior Executives are:
•
remuneration is reviewed annually;
•
either party is able to terminate the ESA on 6 months’ notice;
•
there is no specified term;
•
there are no specified payments to be made to the Senior Executive on termination (apart from any payments in lieu of notice and
any payable statutory entitlements); and
•
a 6 month paid restraint period applies following termination.
The ESAs also specify the remuneration mix that applies to a Senior Executive’s remuneration package.
The entitlement of Senior Executives to unvested deferred STI and LTI awards on termination of their employment is dealt with under the
plan rules and the specific terms of grant.
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