Contracted Remuneration Helps Cast a Wider Net

Issue: Some lower profile roles needed attention

An ASX Listed Resource Company is reviewing the remuneration for its Senior Executives Team. This includes roles not reported as frequently as the higher profile roles of CFO, COO, and Business Unit Heads.

Brief: By expanding the breadth of data captured

The CEO requests the Chief People Officer and the Head of Remuneration provide remuneration benchmarking for all members of the Senior Executive Team, including those not reported as KMPs.

A first pass identified the level of full year records that are available for each of the in-scope roles. For some of these roles, there are fewer records than they’d like, so they examine the contracted remuneration, together with the historical and partial data more closely. Every record counts.

Insight: Converting Partials to Full

Partial year records are not automatically converted to annualised values in the Direct Platform, as many of these may contain additional values that should not be automatically included. Therefore, partial year records are identified within the Platform and can be included or excluded by clicking on a button. Where additional records are required for role not commonly reported, these partical year records can be identified in a download and reviewed on a case by case basis to assess if they are appropriate to include in the analysis. However, where Contracted Remuneration is available, this saves time in identifying many of these additional records

Approach: Using Contracted Remuneration to utilise partial records

Fortunately, AscentData identifies Contracted Remuneration which provides annual remuneration records to be included for many partial year records. And if this is not enough, previously year records may be identifed and aged to the present year to expand the data set.

  • The Contract Remuneration function – allows the Remuneration Team to develop an expanded data set
  • All Previous Year Records – can now be aged for market movement obtained from the year on year movement function in AscentData Direct
  • This Increased Records Significantly – improving the validity of the data set available for the CEO and the Board

Outcome: This creative solution ensured the integrity of the Senior Executive Review

  • The Chief People Officer and the Head of Remuneration were able to locate enough relevant records to quantify the Remuneration benchmarks for all members of the executive team

  • The initial data was reviewed by the CEO, in addition to a range of other business information
  • It was a key consideration in the review of the current remuneration arrangement for all roles
  • The creative approach taken by the Remuneration Team to construct a viable data set in a creative manner was appreciated. These less common executive roles had been hard to compare in previous years
  • This positioned the Head of Remuneration well for other previously advice to the CEO and Board
Case Studies