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Remuneration report
This report outlines the remuneration arrangements for Directors and Executives of the Wattyl Group.
The information provided in this report includes disclosures that are required under Accounting Standard AASB124 Related Party Disclosures.
These disclosures have been transferred from the financial report and have been audited.
Organisation and remuneration committee
The Company’s Board of Directors has an established Organisation and Remuneration (O&R) Committee. The Committee’s main role is to
assist the Board in fulfilling its corporate governance responsibilities and to review and make recommendations on the following matters:
• Managing Director performance assessment and succession planning;
• A remuneration framework and compensation and benefits practices that enable Wattyl Limited (Wattyl) to attract and retain high quality
executives and directors who are dedicated to the interests of Wattyl’s shareholders;
• The reward for the Managing Director, and those who report to the Managing Director (together, “Senior Executives”), taking into account
shareholders’ interests, Wattyl’s business performance, the performance of the relevant executive and to employment market conditions
within the industry;
• Reviewing the Remuneration Report;
• Non-Executive performance review process and fees.
In addition, the O&R Committee reviews Human Resources strategy and policies for consistency with the business strategy.
The Committee comprises two non-executive directors (one of whom is the Chair) and the Managing Director. The members are Patty Akopiantz
(Chair of the Committee), John Ingram (Chairman of the Board) and the Managing Director of Wattyl, John Nolan. Attendance at Committee
meetings by its members are set out on page 25 of the Annual Report.
Remuneration philosophy
The objective of the Company’s executive remuneration framework is to be able to attract, retain and motivate highly skilled executives, and
ensure reward for performance is competitive and appropriate given the results delivered. In particular, the framework aligns executive reward
with achievement of strategic objectives, the creation of value for shareholders and competitive market practice for delivery of reward.
The Board and the O&R Committee ensure that the remuneration framework embodies the following principles:
• Provide competitive remuneration arrangements relative to market, to attract, retain and motivate high calibre executives
• Link executive rewards to shareholder value
• Ensure a significant portion of executive remuneration is ‘at risk’ (via short-term and long-term incentives), measured through achievement
of strategic goals and growth in shareholder value
• Establish appropriate, challenging performance hurdles for variable executive remuneration
• Reward behaviour which is consistent with Wattyl’s values and behaviours
• Encourage ownership of Wattyl shares
• Ensure full legal compliance and transparent disclosure of executive remuneration
The Board and the O&R Committee recognise that while remuneration has an important role in recruiting, retaining and motivating talented
executives, other factors also play a major role e.g. Wattyl’s corporate reputation, ethical culture and business values, executive leadership and
broader human resources policies.
Remuneration of senior executives
Objective
The Company aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities within the
Company so as to:
• Reward executives for company, business unit and individual performance against targets
• Align the interests of executives with those of shareholders
• Link rewards with the strategic goals and performance of the company
• Ensure total remuneration is competitive by market standards