Reward and recognition

We treat our people equitably and with fairness. This is reflected in how we reward and recognise achievements. Our reward and recognition policy acknowledges that recognising achievements is essential to our ongoing success.

Our remuneration philosophy is based on the concept of a total reward package. Our remuneration comprises both fixed pay and variable short-term and long-term incentives. In terms of variable pay, our incentive program is structured to reward employees' achievements against key individual and business performance outcomes. If compliance requirements have been achieved, then an individual's performance determines their share of the available incentive pool. We appoint and promote people based on merit and we demonstrate the principle of equal pay for equal work and responsibility.

In addition, we have a variety of recognition programs throughout the Group. These are discussed annually in the people section of our CR Detailed Facts & Information pack.

Senior executive remuneration

The Group's remuneration philosophy for senior executives is to reward high levels of sustained performance and contribution through pay-for-performance. Performance for senior executives is managed on the same basis as for other employees with individual scorecards and quality gates followed by assessment under the executive talent framework. Senior executive remuneration comprises fixed components and variable, at risk short-term and long-term incentive components.

Short-term incentive payments are based on achievement of agreed performance-based criteria, which include non-financial and financial objectives. Non-financial objectives typically involve implementation of new initiatives and the monitoring and development of key projects. Many are related to CR, such as the development of new disability and health and safety programs, the success of cultural change initiatives, results from Employee Opinion Surveys, and leadership development programs.

Long-term incentive components are designed to ensure that senior managers maintain a long-term focus when setting our strategic direction, by linking executive reward outcomes to those experienced by other shareholders. Long-term incentives do not deliver any financial benefits to employees unless performance hurdles are achieved.

The Board reviews performance and sets the remuneration packages for our executive directors after recommendations from the Board's Remuneration Committee. This includes consideration of the role and structure of the different reward components in helping to drive appropriate management behaviours and embedding cultural change. The Group Chief Executive Officer reviews the performance of the senior executive team with the Board's Remuneration Committee. More information is available on an annual basis in the Remuneration Report  in our Annual Financial Report.