Remuneration policy
Our
Hostplus is run to benefit our members, and does not pay dividends to shareholders or sales commissions to financial planners. Our focus is on providing our members with the best-quality superannuation services at competitive prices.
As such, our remuneration policy is designed to encourage superior performance and long-term commitment to Hostplus from all staff, with our objective being to remunerate fairly and equitably so we can provide a quality service to our members.
Our remuneration policy is also informed by our guiding principles and philosophy and applies to directors, officers and all Hostplus employees.
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Our position on remuneration
Our remuneration policy is designed to encourage superior performance from our staff.
Simplicity. Consistency. Equality. Fairness. Alignment with values. Appropriate risk behaviour. Transparency.
We believe remuneration should:
- facilitate the delivery of superior long-term results for the business
- promote sound risk management principles
- support the corporate values and desired culture
- attract, retain, motivate and align the talent we need to achieve our business goals
- reinforce leadership, accountability, teamwork and innovation
- align with the contribution and performance of the business, teams and individuals.
Our remuneration practices have regard to general market conditions, with a focus on what is happening within the financial services, and more specifically, the superannuation sector.
All remuneration-related matters are to be determined and approved by the Board’s People and Remuneration Committee. The People and Remuneration Committee is accountable for exercising its responsibilities in line with its Charter.
Hostplus remuneration details
Remuneration, in the form of director fees for Board members, are considered by the People and Remuneration Committee which makes recommendations to the Board. Remuneration is reviewed annually, generally in May/June, with any changes to be made effective from 1 July in that year.
(a) Director fees and/or superannuation for these individuals are paid to their nominating association United Workers Union or AHA
(a) Director fees and/or superannuation for these individuals are paid to their nominating association United Workers Union or AHA
| Year ended 30 June 2020 | |||||
|---|---|---|---|---|---|
| Name | Director fee (salary) ($) | Parking benefits ($) | Superannuation ($) | Termination benefits ($) | Total ($) |
| Independent directors | |||||
| D Elmslie | 182,010 | 9,455 | 25,000 | - | 216,465 |
| P Collins | 113,735 | - | 17,060 | - | 130,795 |
| A Grayson | 113,735 | - | 17,060 | - | 130,795 |
| Employer nominated | |||||
| M Robertson (a) | 118,423 | - | 17,763 | - | 136,186 |
| D Gibson | 118,031 | - | 17,705 | - | 135,736 |
| M Vaile | 97,711 | - | 14,657 | - | 112,368 |
| N Randall | 25,095 | - | 3,764 | - | 28,859 |
| Member nominated | |||||
| T Lyons | 130,280 | - | 19,542 | - | 149,822 |
| B Myers (a) | 97,711 | - | 14,657 | - | 112,368 |
| J Hill | 87,551 | - | 13,133 | - | 100,684 |
| R Buckler | 35,987 | - | 5,398 | - | 41,385 |
| Total | 1,120,269 | 9,455 | 165,739 | - | 1,295,463 |
(a) Director fees for these individuals are paid to their nominating association United Workers Union or AHA.
Year ended 30 June 2019 | |||||
|---|---|---|---|---|---|
Name | Director fee (salary) ($) | Parking benefits ($) | Superannuation ($) | Termination benefits ($) | Total ($) |
| Independent directors | |||||
D Elmslie | 177,174 | 9,142 | 26,576 | - | 212,892 |
P Collins | 111,944 | - | 16,792 | - | 128,736 |
A Grayson | 104,445 | - | 15,667 | - | 120,112 |
| Employer nominated | |||||
M Robertson (a) | 116,559 | - | 17,484 | - | 134,043 |
| D Gibson | 116,172 | - | 17,426 | - | 133,598 |
M Vaile | 91,173 | - | 13,676 | - | 104,849 |
| N Randall | 37,811 | - | 5,672 | - | 43,483 |
| Member nominated | |||||
| T Lyons | 128,297 | - | 19,245 | - | 147,542 |
| B Myers (a) | 91,173 | - | 13,676 | - | 104,849 |
| J Hill | 86,172 | - | 12,926 | - | 99,098 |
| R Buckler | 35,420 | - | 5,313 | - | 40,733 |
| Total | 1,096,340 | 9,142 | 164,453 | - | 1,269,935 |
(a) Director fees for these individuals are paid to their nominating association United Voice or AHA.
| Year ended 30 June 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
Name | Date commenced | Dates retired | Change in position | Salary $ | Non-monetary | Super $ | Termination | Date paid | To whom paid |
| Independent directors | |||||||||
David Elmslie | 9/02/2007 | N/A | N/A | 139,939.00 | 8,604.00 | 20,991.00 | N/A | N/A | Himself |
Peter Collins ^ | 1/07/2006 | N/A | N/A | 109,950.00 | N/A | 16,49300 | N/A | N/A | Werrington House Trust |
Alexandra Grayson | 24/10/2013 | N/A | N/A | 94,950.00 | N/A | 14,243.00 | N/A | N/A | Herself |
| Employer nominated | |||||||||
Mark Vaile David Gibson | 1/07/2012 | N/A | N/A | 84,400.00 | N/A | 12,660.00 | N/A | N/A | Himself |
1/07/2012 | N/A | N/A | 103,513.00 | N/A | 15,527.00 | N/A | N/A | Himself | |
Mark Robertson | 6/06/2003 | N/A | N/A | 103,789.00 | N/A | 15,568.00 | N/A | N/A | AHA Victorian Branch |
| Neil Randall (c) | 01/07/2013 | N/A | N/A | 28,696.00 | N/A | 4,304 | N/A | N/A | The Paddington Alehouse |
| Member nominated | |||||||||
| Timothy Lyons (Deputy Chair)# | 15/05/2015 | N/A | 17/10/2015(a) | 115,409 | N/A | 17,311.00 | N/A | N/A | Reveille Strategy |
| Robyn Buckler# | 28/05/2003 | N/A | 14/10/2015(b) | 35,000.00 | N/A | 5,250.00 | N/A | N/A | United Workers Union |
| Beverly Myers# | 10/02/2017 | N/A | N/A | 84,400.00 | N/A | 12,660.00 | N/A | N/A | United Workers Union |
| Judith Hill# | 10/02/2017 | N/A | N/A | 84,400.00 | N/A | 12,660.00 | N/A | N/A | Herself |
(a) Appointed Director and Deputy Chair on 17/08/2015.
(b) Ceased as a Director on 14/10/2015 and appointed as an Alternate Director for United Workers Union nominated Directors on 28/10/2015.
(c) During the period Director Randall acted as an Alternate for AHA nominated Directors.
(d) Parking benefits
# With the exception of Director Lyons & Judith Hill, United Workers Union nominated Directors do not personally receive Directors fees or superannuation contributions from Hostplus, as they are appointed by United Workers Union. An equivalent amount is paid to United Workers Union to compensate for the time spent by the Directors in fulfilling their responsibilities as a Trustee of Hostplus. **$14,066.00 in salary and $2110.00 in superannuation contributions was however paid to United Workers Union for the period July to August 2015 for services rendered by Director Lyons, after which time payment was directed to Reveille Strategy Pty Ltd.
^ For part of the period, director fees and superannuation contribution payments were made payable to the Trustee for Werrington House Trust to compensate for the time spent by the Director in fulfilling his responsibility as a Trustee of Hostplus.
- determine remuneration matters of the Hostplus Group Executive Team
- consider and make recommendations to the Board on all remuneration matters concerning Directors and the CEO and all agreements proposed to be made under relevant industrial legislation (e.g. enterprise agreements).
Base or fixed salary reviews for Group Executives occur annually, generally in May/June, with increases payable from 1 July in that year. Increases for Group Executives, with the exception of the CEO, in excess of the express terms and conditions of the Enterprise Agreement, are subject to People and Remuneration Committee approval.
The Chairman, on behalf of the Board, conducts the performance assessment of the Chief Executive Officer, having regard to objectives set in the previous year including setting objectives for the coming year. The Board, as a whole, discusses the outcome in the absence of the Chief Executive Officer which is then communicated to the Chief Executive Officer.
The Chief Executive Officer conducts the performance assessment for each member of the Group Executive Team, having regard to the operational and financial responsibilities of the Group Executive and the contribution by the Group Executive to the management and leadership of the business.
(a) Parental leave contract position ended
(b) Returned from parental leave
(c) Position changed from Group Executive – Administration Optimisation to Group Executive – Administration Optimisation, Service & Insurance
(d) Appointed as Group Executive – Corporate Affairs, Stakeholder Management, Policy & Advocacy
(e) Position changed from Group Executive – Strategy, Transformation & Services to Group Executive – Strategy &a Transformation
In addition to the remuneration outlined in the table above, N Brouwer and N Strickland cashed-out accrued leave entitlements equal to $5,738 and $11,739, respectively.
(a) Appointed as Group Executive – Risk, Compliance & Legal
(b) Appointed as Group Executive – Client Relationships & New Business and held the position until 30 June 2021
(c) Commenced maternity leave
(d) Position changed from Group Executive, Finance, Technology & Operations to Group Executive, Finance & Technology
In addition to the remuneration outlined in the table above, A. Antonellos cashed-out accrued leave entitlements equal to $38,956.
| Year ended 30 June 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|
Name | Date commenced | Date change in position | Salary | Short-term | Parking | Super- | Termination | Total |
($) | ($) | ($) | ($) | ($) | ($) | |||
D Elia | 15/03/1999 |
| 899,048 | 221,979 | 9,455 | 25,000 | - | 1,155,482 |
N Brouwer | 21/11/2016 |
| 347,269 | 53,162 | 9,455 | 25,000 | - | 434,886 |
K Cantwell | 10/10/2016 | 18/02/2020(b) | 248,827 | 40,879 | 9,455 | 25,000 | - | 324,161 |
S Sicilia | 31/03/2008 |
| 632,946 | 227,013 | 9,455 | 25,000 | - | 894,414 |
N Strickland | 17/02/2014 |
| 236,716 | 25,956 | 9,455 | 25,000 | - | 297,127 |
L Tassone | 19/08/2013 | 18/02/2020(c) | 318,346 | 43,264 | 9,455 | 25,000 | - | 396,065 |
| P Watson | 21/03/2011 | 339,056 | 41,340 | 9,455 | 25,000 | - | 414,851 | |
S Wilkinson | 16/11/2015 | 18/02/2020(a) | 112,295 | 575 | 1,938 | 8,558 | - | 123,366 |
Total |
|
| 3,134,503 | 654,168 | 68,123 | 183,558 | - | 4,040,352 |
(a) Appointed as Group Executive - Strategy, Transformation and Services
(b) Position changed from Group Executive - Service Operations to Group Executive - Administration Optimisation
(c) Position changed from Group Executive - Finance, Strategy and IT to Group Executive - Finance, Technology & Operations
In addition to the remuneration outlined in the table above, D. Elia, N. Strickland and L. Tassone cashed-out accrued leave entitlements equal to $173,173, $3,395 and $28,340, respectively.
| Year ended 20 June 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|
Name | Date commenced | Date change in position | Salary | Short-term | Parking | Super- | Termination | Total |
($) | ($) | ($) | ($) | ($) | ($) | |||
D Elia | 15/03/1999 |
| 822,942 | 231,972 | 9,142 | 25,961 | - | 1,090,017 |
N Brouwer | 21/11/2016 |
| 307,915 | 36,353 | 9,142 | 25,000 | - | 378,410 |
K Cantwell | 10/10/2016 | 267,125 | 39,359 | 9,142 | 25,000 | - | 340,626 | |
| U Mecchi | 28/11/2011 | 7/12/2018(b) | 178,624 | 53,089 | 2,884 | 13,461 | - | 248,058 |
S Sicilia | 31/03/2008 |
| 589,977 | 343,505 | 9,142 | 25,000 | - | 967,624 |
N Strickland | 17/02/2014 |
| 180,680 | 32,406 | 9,142 | 27,772 | - | 250,000 |
L Tassone | 19/08/2013 | 17/10/2018(a) | 195,115 | - | 6,258 | 17,115 | - | 218,488 |
| P Watson | 21/03/2011 | 17/10/2018(c) | 315,833 | 32,843 | 9,142 | 25,000 | - | 382,818 |
Total |
|
| 2,858,211 | 769,527 | 63,994 | 184,309 | - | 3,876,041 |
(a) Appointed as Group Executive – Finance, Strategy and IT
(b) Resigned as Chief Marketing Officer
(c) Position changed from Group Executive – Retirement Solutions & Advice to Group Executive – Member Experience
In addition to the remuneration outlined in the table above, D. Elia, N. Brouwer, U. Mecchi and N. Strickland cashed-out accrued leave entitlements equal to $95,192, $31,377, $207,442 and $12,733, respectively.
| Year ended 30 June 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
Name | Date | Date change in | Salary ($) | STI ($) | Parking benefits | Super ($) | Termination | Total ($) | |
D Elia | 15/03/1999 | N/A | 717,452 | 241,391 | 8,604 | 25,000 | N/A | 992,447 | |
N Brouwer | 23/11/2014 | N/A | 201,408 | 16,361 | 8,604 | 25,000 | N/A | 251,373 | |
K Cantwell | 10/10/2016 | N/A | 267,259 | 32,701 | 8,604 | 25,000 | N/A | 333,564 | |
U Mecchi | 28/11/2011 | N/A | 345,496 | 52,164 | 8,604 | 25,000 | N/A | 431,564 | |
| S Sicilla | 31/03/2008 | N/A | 571,968 | 326,830 | 8,604 | 25,000 | N/A | 932,402 | |
N Strickland | 17/02/2014 | N/A | 180,696 | 9,941 | 8,604 | 25,000 | N/A | 224,241 | |
P Watson | 21/03/2011 | N/A | 297,421 | 30,265 | 8,604 | 25,000 | N/A | 361,290 | |
| Total | 2,581,700 | 709,653 | 60,228 | 175,000 | 3,526,581 | ||||
Further information
The People and Remuneration Committee is responsible for regularly reviewing the remuneration policy and as appropriate, making recommendations to the Board. This includes an assessment of the policy’s application, effectiveness and compliance with the requirements of APRA’s Prudential Standard SPS 510: Governance.
The People and Remuneration Committee reviews the policy annually to ensure it continues to meet its intended purpose and to identify any material deviations of remuneration outcomes.
The Committee’s responsibilities are set out in the People and Remuneration Committee’s Charter and extend to:
- approving the staff benefits that have significant monetary impacts
- setting fixed remuneration annual review parameters and outcomes
- setting maximum variable remuneration
- deciding participation in variable remuneration plans
- reviewing overall short-term incentives (STIs) allocations
- approving any proposal for a sign on, retention or termination payment.
Hostplus offers variable remuneration in the form of STIs to the CEO and to members of the Group Executive Team. At its discretion, the Board may implement a variable remuneration scheme for non-executive staff based on individual performance, but linked to overall performance of the Fund.
CEO and Group Executive Team – participation is subject to People and Remuneration Committee approval and Board endorsement.
STIs are discretionary, performance-based remuneration designed to drive and reward short-to-medium term results, reflecting the level of risk. This includes financial and non-financial results and metrics at an organisation, department, team and individual level.The STI plan is set at the start of each financial year, with the conditions attached to the specific individual plans and objectives to be met.
Any sign-on, retention or termination payments not set out in the employment contract are to be approved by the People and Remuneration Committee.
All Group Executives at Hostplus may resign from their employment by giving Hostplus three (3) months’ notice in writing. The relevant Group Executive and Hostplus may agree on a lesser notice period, or Hostplus may, at its discretion, waive the notice period. Hostplus may terminate their employment and in such circumstances Hostplus must provide them with three (3) months’ notice in lieu.
In addition, Hostplus may terminate their employment at any time, without notice, if, in the opinion of Hostplus, they engage in serious misconduct, serious neglect of duty, or serious breach of any of the express or implied terms of their employment contract. In such circumstances they would be entitled to payment of their normal salary and benefits up to the date of termination only.
Details of the remuneration paid to our Responsible Persons are set out above.