Performance Evaluation Policies

The company has a range of processes in place relating to performance evaluation of the Board, the Board Committees, individual Directors, executives and staff.

1.  Board and Director Evaluation

The process of evaluating the performance of the Board as a whole is the responsibility of the Board under the direction of the Chairman.  The evaluation of Board performance involves:

•    Setting of objectives and the period over which they are to be achieved
•    Assessing the extent to which objectives were achieved by the Board at the appropriate time.

The Chairman is responsible for ensuring there is a process of assessment of Directors’ performance. The process may draw on a range of techniques, including:

•    Surveys of Board members concerning their perceptions about the Board and Director performance
•    Review of reports from Board Committees (see below)
•    Interviews with Directors and
•    Use of external advisers to assist with the overall evaluation process

2.  Board Committees

The Charter of each Board Committee requires the Committee to annually review its performance and, where necessary, make recommendations to the Board for improving the effectiveness of the Committee.

An evaluation report is prepared by the relevant Committee Chairman and provided to the Chairman of the Board. This report evaluates the performance of the Committee against its stated objectives and responsibilities during the year.

3.  Disclosure of Performance Evaluation

From FY2004, the outcome of the performance evaluation of the Board is disclosed in the Corporate Governance Statement of the Annual Report.

4.  Executives

All executives are subject to annual performance planning and review.

The annual performance planning and review involves each executive being evaluated by the Managing Director / Chief Executive Officer.  The executive’s performance is evaluated against objectives that were set at the commencement of the year. Periodic reviews are held during the year to assess progress and a final review is performed at the completion of the year.

The outcomes of performance reviews are reported to the Human Resources & Remuneration Committee, which has overall responsibility for ensuring that performance management processes are in place for all executives (excluding the Managing Director / Chief Executive Officer – who is assessed by the Board). 

Executive remuneration is considered by the Human Resources and Remuneration Committee.
The Human Resources and Remuneration Committee also considers the overall amount of any short-term incentive bonus awarded to particular executives.  This takes into account the overall performance of the Company against a range of measures, and the contribution made by a particular executive based on their performance.

The performance evaluation of the Managing Director / Chief Executive Officer is facilitated by the Chairman, with ultimate oversight by the Board.  The evaluation of the Managing Director / Chief Executive Officer involves an assessment of a range of factors including the overall performance of the Company and the achievement of specific pre-determined goals.

5.  Staff

The performance evaluation of staff occurs in a manner similar to the performance evaluation of executives, although in some circumstances the staff member’s immediate superior is involved in the evaluation process as well as the Managing Director / Chief Executive Officer.