A Message from the President: Disclosure of Chief Executive and Board Remuneration
The Board of Governance Institute of Australia recently decided to provide additional disclosure of the remuneration of our Chief Executive and Directors.
Governance Institute currently discloses the total remuneration of Key Management Personnel, including the Chief Executive, other senior executives and state managers, covering a total of 12 people, on an aggregate basis in its Annual Report and Financial Statements.
This Key Management Personnel (KMP) compensation, which amounted in aggregate to $2,144,561 in 2016, comprises of salary and bonuses ($1,773,089), superannuation contribution ($165,704) and long service leave provision ($205,768).
Our President and board members are not paid for their services to Governance Institute as directors.
While not for profit organisations are not required by law or regulation to provide this level of disclosure of KMP compensation, Governance Institute has voluntarily adopted this higher standard of disclosure which is consistent with many listed companies and the ASX Corporate Governance Council Guidelines and Recommendations.
In recent months, other member associations and professional bodies which had previously disclosed KMP remuneration on an aggregate basis, including the Tax Institute, Chartered Accountants Australia and New Zealand, CPA Australia, the Australian Institute of Company Directors and the Institute of Public Accountants, have also decided to disclose the salary and bonus of their Chief Executives on an individual basis.
In the interests of providing greater transparency to members at this time, rather than in the next published Annual Report for 2017, our Board has decided that it would be appropriate to provide details of the compensation of our Chief Executive, Steven Burrell.
For the financial year ended 31 December 2016, Mr Burrell received a base salary of $280,000 inclusive of superannuation plus a performance bonus of $10,237.50 consistent with the performance incentive arrangements included in his contract of employment.
In 2017 Mr Burrell will receive a base salary of $284,200 inclusive of superannuation. Any performance bonus will be determined by the Board in March 2018, after the financial results for the 2017 fiscal year ending 31 December 2017, are finalised.