BONUS SYSTEM – AUSTRALIA

Rio’s deferral of bonus to Walsh ‘reasonable’

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Original article by Peter Ker
The Australian Financial Review – Page: 13 : 12-Apr-17

Proxy adviser ISS has backed Rio Tinto’s decision to delay paying bonuses to former CEO Sam Walsh until it completes an investigation into the Simandou payments scandal. The firm concluded that Rio’s action regarding Walsh’s short and long-term bonuses was "reasonable". However, ISS also noted that in contrast to Walsh, two Rio Tinto executives who were sacked over the iron ore scandal in Guinea will lose their bonuses completely, which will cost them about $A4m apiece.

CORPORATES
RIO TINTO LIMITED – ASX RIO, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, MOXICO RESOURCES PLC

Shareholders blast CBA CEO’s diversity bonus

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Original article by Patrick Durkin, Matthew Cranston
The Australian Financial Review – Page: 6 : 27-Sep-16

The Commonwealth Bank of Australia has been criticised for adding new targets to its bonus plan. The Australian Shareholders’ Association is concerned that CBA executives will now be rewarded for meeting targets that are unrelated to performance, following the introduction of a 25 per cent target for "diversity, inclusion, sustainability and culture". The bank’s existing 25 per cent bonus for "customer satisfaction" is also controversial. CEO Ian Narev’s remuneration for 2015-16 comprised a base salary of $A8.77 million and performance-linked bonuses of $A3.53 million.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, AGL ENERGY LIMITED – ASX AGL, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, INVESTA OFFICE FUND – ASX IOF, ISS – INTERNATIONAL SERVICE SOLUTIONS A/S

South32 chief docked $1.2m over mining deaths in Africa

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Original article by Tess Ingram
The Australian Financial Review – Page: 28 : 9-Sep-16

The annual report of South32 shows that the Australian-listed group’s safety record in South Africa was reflected in the remuneration of senior executives in 2015-16. The miner’s board slashed the short-term incentive payments of CEO Graham Kerr and other top executives after four fatal incidents at its South African mines and aluminium smelter during the financial year. This is estimated to have reduced Kerr’s total remuneration by around $A1.2m.

CORPORATES
SOUTH32 LIMITED – ASX S32

BHP bonuses cut by Samarco disaster

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Original article by Matt Chambers, Barry FitzGerald
The Australian – Page: 20 : 8-Dec-15

Shares in BHP Billiton have shed 23 per cent in the wake of the tailings dam failure in Brazil in early November 2015. The resources giant has responded by reducing the number of bonus shares allocated to senior executives under the 2014-15 long-term and short-term incentives scheme. CEO Andrew Mackenzie will be allocated 339,753 long-term incentive plan performance shares and 69,566 short-term incentive plan deferred shares.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA

Westpac under fire over pay

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Original article by Adele Ferguson
The Australian Financial Review – Page: 1 : 30-Nov-15

Westpac has refuted claims by Ownership Matters that its executive bonuses for 2013-14 and 2014-15 were inflated by a decision to exclude a software write-off from its cash earnings. Ownership Matters argues that Westpac’s ex-CEO Gail Kelly and other senior executives would not have received bonuses if the $A354m software write-down had been included in the bank’s cash earnings. The firm has advised Westpac shareholders to vote against the bank’s remuneration report at its 2015 annual meeting.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, OWNERSHIP MATTERS PTY LTD, DEUTSCHE BANK AG

Strikers still eligible for productivity bonus

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Original article by Ewin Hannan
The Australian Financial Review – Page: 9 : 6-Oct-15

The full bench of the Fair Work Commission has rejected a bid by Thiess to overturn a previous ruling on the payment of a productivity bonus to coal miners who had gone on strike. The Construction, Forestry, Mining & Energy Union had argued that workers at the Mt Owen mine in New South Wales should be entitled to the productivity-linked component of a weekly allowance, despite being on strike for three months. The union had argued that an enterprise agrement did not specify any causes for non-payment of the bonus.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, THIESS PTY LTD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA