Page 86 - GMT and GMT Bond Issuer Annual Report 2017 v2

REMUNERATION REPORT
continued
SUMMARY OF KEY REMUNERATION PRINCIPLES
A summary of key remuneration principles applied by GPSNZ is set out below:
DIRECTORS’ REMUNERATION
Although the Directors’ remuneration is paid by Goodman Group and not GMT, the Directors and Goodman Group have agreed to disclose the Directors’ remuneration to Unitholders in the interest of full and complete disclosure.
The Chairman of the Manager is entitled to $150,000 per annum, the Chairman of the Audit Committee is entitled to $95,000 per annum and each other Director is entitled to $85,000 per annum, with the exception of Mr Goodman and Mr Dakin.
In addition, Directors (other than Mr Goodman and Mr Dakin) are paid $300 per hour for time spent in relation to Due Diligence Committee matters.
Mr Goodman and Mr Dakin do not receive any remuneration for their roles on the Board of GNZ.
Directors were entitled to fees, including fees for Due Diligence Committee matters, as set out below. None of the Directors are paid performance related fees relating to their Directorships.
+ the basis of remuneration is local market referenced base salary, reviewed (but not necessarily adjusted) annually;
+ employees may be awarded STIs in the form of discretionary cash bonuses, subject to GMT, Goodman Group and personal achievement of nancial and operational targets. The objective of the STI scheme
is to reward performance within a speci c performance period;
+ all employees can participate equally in
two LTIP schemes designed to maximise long-term alignment with Unitholders of GMT (“NZ LTIP”) and securityholders of Goodman Group (“Goodman Group LTIP”) and to incentivise employees to remain with GPSNZ over the longer term;
+ under the NZ LTIP, performance rights are issued which give employees the right to acquire, for nil consideration, Goodman Property Trust units subject to the satisfaction of hurdles assessed over speci c three
year testing period timeframes. GMT units awarded are sourced from units held by Goodman Group or purchased on market by Goodman Group, and are a cost of GPSNZ, not the Trust. The Trust does not issue any additional units in relation to the NZ LTIP scheme, and therefore there is no dilutive impact to GMT unitholders;
+ under the Goodman Group LTIP, performance rights are issued which give employees the right to acquire, for nil consideration, stapled securities of Goodman Group subject to the satisfaction of hurdles assessed over speci c three year testing period timeframes. GMG securities awarded are a cost of GPSNZ, not the Trust;
+ for both LTIP schemes, an employee is required to remain employed for a ve
year period from the initial granting to be eligible to receive all of the awards that meet performance hurdles;
+ performance based incentives such as
cash bonuses and performance rights are normally awarded only when key metrics
are met or exceeded, however, discretion remains with the Board of Goodman Group on the nal determination of awards in
cases of exceptional individual or divisional performance where nancial metrics may not have been met; and
+ conversely there may be situations where the Board of Goodman Group exercises its discretion to withhold incentives.
Directors’ fees
Director
Keith Smith
Peter Simmonds Susan Paterson Leonie Freeman Gregory Goodman Phillip Pryke
John Dakin
Current role
Chairman, Independent Director
Chairman Audit Committee, Independent Director Independent Director
Independent Director
Non-executive Director
Non-executive Director
Executive Director
31 March 17
$150,000 $95,000 $85,000 $85,000
- $85,000 -
31 March 16
$150,000 $95,000 $85,000 $85,000
- $85,000 -
GOODMAN PROPERTY TRUST ANNUAL REPORT 2017 GMT BOND ISSUER LIMITED ANNUAL REPORT 2017
84 OTHER INFORMATION REMUNERATION REPORT