02Governance

CEFC ANNUAL REPORT / 2015–16

EXECUTIVE COMMITTEES

In addition to the Executive leadership group, the CEFC has three executive committees that assist the Corporation in the review and management of its investments, internal governance and risk management:

  1. The Executive Investment Committee screens new investments prior to presentation to the Board and closes out transactions after Board investment approval
  2. The Asset Management Committee has an oversight role for the ongoing management and performance of investments that have reached financial close
  3. The Executive Risk Committee oversees the operation of the Risk Management Framework and the management of risk, compliance and governance issues associated with the CEFC’s investments and the CEFC itself.

Executive departures

During the year the CEFC saw the departure of two founding Executives, Mr Ted Dow and
Ms Meg McDonald.

The Board and Executive wish to thank them for their considerable contribution to the success of the CEFC. This provided an opportunity to strategically restructure the business and reporting lines to provide more effective support to achieve the CEFC’s objectives and to scale for future growth.

EXECUTIVE REMUNERATION AND ALLOWANCES

The Board’s Remuneration and Human Resources Committee is responsible for structuring Executive remuneration, the evaluation of performance and approval of any variable compensation amounts.

During 2015-16, Total Annual Remuneration Packages (TARPs) for the six CEFC Executive members included base salary, superannuation, and variable compensation.

Variable compensation payments for each 12‑month period are determined within the guidelines recommended by the Remuneration and Human Resources Committee and approved by the Board. The method for calculation is based on both short‑term and longer‑term performance metrics agreed by the Board and includes financial, operational and individual targets.

Eligibility for a variable compensation payment is based on the assessed performance of each Executive member and their contribution to the achievement of the CEFC’s defined performance objectives. Variable compensation payments were made within the reporting period.Information on payments made to the Executive members in the reporting period is available in the Financial Statements at Note 2.1 and Note 5.2. Most CEFC Executive travel and expenses claims are usually dealt with on an indemnity and reimbursement basis. Refer Indemnities and Insurance Premiums for Officials.