Committee-pack summary (for Remuneration Committee papers)

Purpose

Provide market-true benchmarking for the executive team and decision support for FY26 remuneration outcomes.

Scope

Roles in scope: [insert]. Market defined by talent flows (sources/destinations), sector proximity, size/complexity and regulatory context.

Method & sources (summary)

• Data from reputable surveys + public disclosures
• Normalised to TFR / STI target & max / LTI target & max / TTR (target & max)
• Size/complexity adjustments; ageing to a common valuation date
• Outlier policy applied; quartiles reported (P25/P50/P75/P90)
• Documented methodology for audit trail and investor queries

Peer set (market definition)

Derived from where the company hires from and where leavers go, refined by size (revenue/FTE/assets), complexity (multi-region/regulatory), and capital intensity.

Market results (portfolio view)

• Overall pay-mix trends: increasing weight to LTI in capital-intensive and regulated sectors; STI medians trending towards fewer, clearer KPIs with stronger thresholding.
• Internal equity: compression risk between [Role A] and [Role B] due to scope divergence; progression ranges proposed to manage optics and retention.

Sample role assessment — Chief Financial Officer (illustrative only, AUD)

Component	Current	Market P25	Market P50	Market P75	Positioning
Total Fixed Remuneration (TFR)	640,000	520,000	600,000	680,000	P62
STI Target (% of TFR)	50%	45%	55%	65%	Slightly below P50
STI Maximum (% of TFR)	100%	90%	100%	120%	At P50
LTI Target (% of TFR)	80%	70%	100%	130%	Below P50
LTI Maximum (% of TFR)	160%	140%	180%	220%	Below P50
Total Target Rem (TTR)	1,152,000	—	—	—	~P45 (mix-driven)

undefined Commentary (illustrative):

• Market positioning: Fixed is slightly above median; at-risk opportunity (especially LTI) trails market, pulling total target below P50.
• Pay mix: Current mix skews to fixed/STI; peers emphasise LTI for value creation and retention.
• Talent dynamics: CFO market remains competitive; retention risk moderate in next 12–18 months given sector demand.
• Governance & investors: LTI design should emphasise ROIC and relative TSR with clear underpins; disclose rationale for any step-ups.

Recommendations (illustrative):

1. Maintain TFR; lift LTI target from 80% → 100–110% of TFR over the next cycle, contingent on refreshed performance conditions and holding requirements.
2. Keep STI target at 50–55%, tighten threshold gates and add a capital discipline KPI (weight 20–25%).
3. Introduce minimum shareholding guideline (e.g., 150% of TFR) with a four-year build period.

Decisions requested (template)

• Confirm market definition and peer set
• Approve positioning ranges per role (target at P50; discretion to P75 for scarce/critical roles)
• Endorse pay-mix architecture (STI/LTI opportunity and design levers)
• Note internal equity adjustments and implementation timing

Risk & fairness lens

• Internal relativities reviewed; proposed ranges mitigate compression risks and support progression
• Checkpoints for gender pay equity and equal remuneration for work of equal value
• Disclosure-ready narrative prepared for investor engagement

Definitions

TFR = Total Fixed Remuneration (base + super/benefits).

STI = Short-Term Incentive (target/maximum opportunity).

LTI = Long-Term Incentive (face value at grant, with service/performance conditions).

TTR = Total Target Remuneration (TFR + STI target + LTI target).