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TT-Line - Performance Incentive Payments


Cassy O'Connor MP  -  Thursday, 1 December 2022

Tags: TT-Line

Ms O'CONNOR - Yes, happy with the Geelong answer. The next question relates to page 37 of the annual report. It's the short term incentives to the directors or the board members, through you minister, are you able to talk about on what basis directors are given, for example, $37 745 or $45 000 in a year on top of their board fees?

Mr DWYER - That is not directors.

Ms O'CONNOR - This is your staff? Executive level employees.

Mr DWYER - Not directors.

Mr FERGUSON - That would be senior leaders in the employee--

Ms O'CONNOR - I am in the wrong business.

Mr FERGUSON - Non directors.

Ms O'CONNOR - Okay, to reframe the question with the correct terminology, are you able to explain, minister, or perhaps Mr Dwyer, on what basis senior executive staff are given quite significant short term incentive payments? What do they need to do to earn that?

The question stands, just in terms of the incentive payments to senior executives. For example, what did one senior executive do that was so exemplary they got a lot more than others? It's the 'Director and key management personnel compensation' chapter.

Mr DWYER - The short-term incentive scheme is all based on KPIs for the whole of the company as well as the individual components of the business. The first hurdle is the overall company performance against KPIs and then the individual performances are their own particular areas within the business and how they've supported the business. There are overall business KPIs as well as departmental KPIs. These are all analysed and then proposed to the renumeration committee of the board who then either approve that or don't approve that, in essence.

Ms O'CONNOR - Is this written in the contracts of senior executives, that there may be short term incentives?

Mr DWYER - Yes, it is.

Ms O'CONNOR - What happened in the first year of the pandemic, for example?

Mr DWYER - Zero.

Ms O'CONNOR - Zero short term incentives?

Mr DWYER - For the leadership team not only were there no short term incentives, but also no pay increases either through the pandemic.

Ms O'CONNOR - Rightly so. What about the next year, 2021? Can you remember? Did you just start getting back?

Mr DWYER - This is where we start coming back. This is 2021 22.

Ms O'CONNOR - Not this year. The second year of the pandemic, which was basically 2021, wasn't it?

Mr DWYER - That's right.

Mr GRAINGER - These incentive payments fall into line with Treasury guidelines. That’s what we use.

Ms O'CONNOR - Okay, thank you.