Home' Slater and Gordon Annual Report : Slater and Gordon AR 2015 Contents 35
Annual Report 2015 Slater and Gordon Limited
Slater and Gordon Limited
Audited Remuneration Report
I am pleased to present our Remuneration Report for the year ended 30 June 2015. In striving to provide for continuous
improvement, the Remuneration Report format has been modified so as to provide a framework for clearer disclosure of
the relevant information to shareholders.
The 2015 financial year has been a year of great change for the Slater and Gordon Group. The strong underlying
business performance has continued and in May 2015, we successfully completed the purchase of Slater Gordon
Solutions (“SGS”), creating a leading consumer law firm in the UK. The Board is confident that this acquisition will deliver
significant long term value to the Company’s shareholders. Full details of the acquisition are dealt with comprehensively
elsewhere in the Directors’ Report.
I wish to highlight the changes in Board and executive key management personnel (“KMP”) remuneration, as follows:
• Chair, Non-Executive Directors (“NED”) and committee fees increased in FY15 by approximately 5%. This was the
first increase since FY12.
• The Board undertook a review of all executive KMP and Board remuneration during the year, including independent
remuneration consultant input, and will be recommending to shareholders at the upcoming AGM that the Director fee
pool limit be increased to accommodate additional Board appointment(s) and to better reflect market expectations of
NED fees. Despite these proposed changes our Board remuneration settings will remain conservative, ie. at the lower
end of the range for companies of comparable size and complexity.
• As of 30 June 2015, all Board and executive KMP held shares in the Company. Minimum shareholding guidelines for
Board members and executive KMP are presently under consideration and any policy changes will be announced in
due course, as required.
• The Board intends to revise the remuneration opportunity for executive KMP in FY16. It is intended that increases in
fixed remuneration will be held to less than 3% unless there has been a material change in the responsibility
encompassed by the relevant position.
• Although executive KMP remuneration will remain conservative in FY16, the Board intends to increase ‘at risk’ short
and long term remuneration opportunities for all executive KMP. These increased remuneration opportunities will be
conditional upon performance to ensure appropriate alignment to shareholder interests. Bonuses to be paid to
executive KMP in respect of FY15 have been provisionally determined and will not exceed $570,000. All executive
KMP scored well against their KPIs, however, the total amount awarded will be less than the total paid in FY14. This
reflects the Board’s view that whilst the performance was strong, there are areas where further improvement is
required. Final amounts will be determined following completion of the Company’s performance and development
review cycle in October 2015.
• Under consideration for FY16 are: the implementation of a clawback policy in relation to executive KMP; a policy of
STI deferral for executive KMP; and minimum shareholding guidelines for the Board and executive KMP. A policy of
STI deferral is currently in place with key leaders outside of the Group Executive. Any policy changes will be
announced in due course, as required.
• No equity incentives for executive KMP vested in FY15 and no previously granted equity incentives will vest in FY16.
Effective from 1 July 2015, the Nomination and Remuneration Committee has been reconfigured into two (2) separate
committees. The Nomination Committee will be focused on Board and Committee composition, appointment and
induction of new Board members, succession planning and performance evaluation for the Board as a whole. The
Remuneration Committee will continue to focus its efforts on ensuring that Board remuneration remains competitive but
conservative and that executive KMP remuneration has an appropriate balance between fixed and variable components
with a clear relationship between Group performance and risk management, including the successful integration of any
For a more fulsome analysis of these matters, please see the enclosed Remuneration Report.
Chair Remuneration Committee
29 September 2015
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