Management & Governance
Performance and non performance related remuneration
Total remuneration is a combination of fixed and performance related elements, each of which is described in this report. In addition, some executives have specific arrangements for remuneration outside these core elements and which are detailed in the service contracts table. The total remuneration for executives shown in the Executives' and non executive directors' remuneration table includes these non performance related items, which are specific to the circumstances of each executive.
The performance related, or variable, elements are the short and long term incentive plans, which are linked to achievement of business and personal performance goals and are, therefore, "at risk". The rest of the elements of the package are "fixed", as they are not at risk, although some, such as base salary, are also related to performance.
Excluding post employment costs and expatriate secondment costs, employment costs and other benefits, the proportion of total direct remuneration provided by way of variable components, assuming target levels of performance, is approximately 68 per cent for the chief executive, 62 per cent for the finance director, and between 62 per cent and 68 per cent for the product group chief executives and the Group executive Business Resources. Variable components comprise the Short Term Incentive Plan, the Share Option Plan and the Mining Companies Comparative Plan (STIP, SOP and MCCP respectively).
The actual proportion of total direct remuneration provided by way of variable components is set out in the table below and may differ from these target percentages depending on company and personal performance. Fixed pay is represented by base salary, non monetary and other cash benefits, post employment benefits, other than long term benefits, termination benefits and voluntary share based awards. Variable pay is made up of the cash bonus and the values of the share based awards related to company performance.
Table showing remuneration mix
| Executive | Fixed as % of 2007 total |
At-risk as % of 2007 total |
Options as % of total |
|---|---|---|---|
| Tom Albanese | 31.8 | 68.2 | 6.0 |
| Leigh Clifford | 72.9 | 27.1 | 12.2 |
| Guy Elliott | 19.6 | 80.4 | 6.7 |
| Dick Evans | 100 | - | - |
| Preston Chiaro | 19.2 | 80.8 | 7.5 |
| Bret Clayton | 42.9 | 57.1 | 4.9 |
| Oscar Groeneveld | 24.0 | 76.0 | 6.0 |
| Keith Johnson | 21.0 | 79.0 | 7.1 |
| Andrew Mackenzie | 25.8 | 74.2 | 7.8 |
| Sam Walsh | 19.3 | 80.7 | 6.4 |
Dick Evans did not receive vested incentives in 2007.
Download this section
Management & governance (1.78MB)