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Aspects of Remuneration Report

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Added on  2020-02-18

Aspects of Remuneration Report

   Added on 2020-02-18

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MANAGEMENTACCOUNTINGSONIC HEALTHSTUDENT ID:[Pick the date]
Aspects of Remuneration Report_1
MANAGEMENT ACCOUNTINGThe company selected for this task is Sonic Healthcare. The various aspects related to theremuneration report coupled with the linkage of the remuneration have been discussed in theform of investigative report highlighted below.Use of incentivesThe remuneration of both the executive and non-executive directors is determined by theRemuneration and Nomination Committee which consists of four non-executive andindependent directors so as to ensure that pay packages are linked to performance and can bejustified to the shareholders of the company. The remuneration of the executives primarily isin the form of three main components.Fixed Remuneration – This essentially refers to the remuneration component that isfixed and thus independent of the performance of the firm. This includes fixed salarycoupled with superannuation contributions from employer. In order to cope with 5% Short Term Incentives (STI) – For the year 2015 and 2016, the maximum short termincentives were pegged at 100% of the fixed remuneration and typically is driven byperformance measures particularly EBITDA growth. A target is specified for eachyear and the STI are given in accordance with the actual % target achieved.Long Term Incentives (LTI) – Options and performance rights are given to keyexecutives and these are typically linked to long term performance which spans acrossmultiple years rather than being limited to a single year. Also, for the LTI, theperformance evaluation measures are defined at the time of issue of rights and optionsand these tend to differ every year but are announced beforehand. The various optionsand grants issued in 2012 are highlighted below for the CEO (Dr. C.S. Goldschmidt)and Finance Director (C.D. Wilks). Executive Remuneration Reporting Modifications
Aspects of Remuneration Report_2

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