Home' Nufarm Annual Report : Nufarm Annual Report 2015 Contents Basis for preparation
The remuneration report is designed to provide shareholders with an understanding of Nufarm’s remuneration policies and
the link between our remuneration strategy and performance. The report focuses on key management personnel (KMP) as
defined under the Corporations Act 2001.
The remuneration report for Nufarm for 2015 has been prepared in accordance with section 300A of the Corporations Act 2001.
Key developments in FY15
Change of managing director and chief executive officer
On 4 February 2015, Doug Rathbone ceased in his role as managing director and chief executive officer of the Nufarm group
and Greg Hunt, group executive commercial operations, was appointed on an acting basis. On 5 May 2015, Greg Hunt was
confirmed as managing director and chief executive officer of the Nufarm group.
Under his new chief executive officer contract, Mr Hunt is entitled to fixed annual remuneration (FAR) of $1,200,000 (inclusive
of superannuation), short term (STI) opportunity equivalent to 50 per cent of his FAR at target, half of which will be deferred into
shares and subject to an additional two-year trading restriction, and a long term (LTIP) opportunity equivalent to 50 per cent
of his FAR, vesting of which is subject to satisfaction of performance hurdles measured over a three-year performance period.
Mr Hunt’s employment contract can be terminated by either party giving six months’ notice, in which case he will be entitled
to a termination payment equivalent to 12 months’ fixed annual remuneration (inclusive of any payment in lieu of notice).
Further details of Mr Hunt’s remuneration for FY15 are set out in this report.
The former managing director and chief executive officer, Mr Rathbone, was entitled to FAR of $1,737,754 (inclusive of
superannuation), an STI opportunity equivalent to 100 per cent of his FAR at target, and an LTIP opportunity equivalent
to 48 per cent of his FAR, vesting of which was subject to satisfaction of performance hurdles measured over a three-year
performance period. Mr Rathbone’s employment contract could be terminated by either party giving 12 months’ notice, in
which case he was entitled to certain termination payments, subject to the provisions of the Corporations Act. On ceasing
employment, Mr Rathbone received a termination payment of $1,643,193 plus his statutory entitlements (comprising accrued
annual and long service leave). His deferred STI for FY13 and FY14 and his previous LTIP grants remain on foot in accordance
with their original terms. No other termination payments were made to Mr Rathbone.
Mr Rathbone had been employed by Nufarm for 41 years, 15 years as the group’s managing director and chief executive
officer. In order to ensure a smooth transition to the new managing director and chief executive officer and to benefit from
Mr Rathbone’s knowledge of the group, the company has entered into a 12-month consultancy agreement with Mr Rathbone.
Mr Rathbone will be paid a consultancy fee of $83,333 per month in return for agreed services, including his continued
assistance with specific transactions and legacy matters.
Further details of Mr Rathbone’s remuneration for FY15 are set out in this report.
Changes in executive management team
The 2015 reporting period saw a number of other changes to the executive management team as part of an ongoing,
broader restructuring of the business. The changes coincided with the alignment of executive portfolios to the strategy
of the business, as well as a clearer designation of decision making authority and control of the major levers that drive
performance across the group.
The changes to the executive management team were as follows:
• The group executive, corporate strategy and external affairs role changed in scope from 4 February 2015, at which time
the strategy component of that role became the shared responsibility of the acting chief executive officer and other group
executives. The group executive, corporate strategy and external affairs role, along with the group executive, corporate
services and company secretary role, and the group executive, people and performance role ceased to be KMP roles as
of the same date.
• The group executive, procurement and commercial services role and the group executive, innovation and development role
were realigned and ceased to report to the chief executive officer and managing director directly in FY14. Accordingly,
these roles ceased to be KMP roles from 31 July 2014.
DIRECTORS’ REPORT continued
NUFARM LIMITED ANNUAL REPORT 2015 | 41
Links Archive Nufarm Half Year Report 2015 Nufarm Sustainability Report 2015 Navigation Previous Page Next Page