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24AnnualReview2012RemunerationSummarySummaryofremunerationarrangementsandoutcomesforseniorexecutivesfor2012ThissummarygivesshareholdersaconciseandeasytounderstandoverviewoftheGroupx19sremunerationoutcomesforthe2012x1nancialyearandincludesinformationontheactualvalueofremunerationreceivedbyseniorexecutives.Thissummaryisunauditedandhasnotbeenpreparedtocomplywithstatutoryobligationsoraccountingstandards.ThedetailedstatutoryremunerationdisclosurespreparedtocomplywiththeaccountingstandardsarecontainedintheCompanyx19s2012remunerationreport.201112arrangementsRemunerationoversightapprovalTheboardonrecommendationofthegovernanceHRcommitteeapprovedthe2012remunerationarrangementsforseniorexecutivesincludingthemanagingdirectorinAugust2011.Themanagingdirectorx19slongtermincentivearrangementsweresetin2009.Theseniorexecutivesx19longtermincentivearrangementsweresetin2009and2010.Nolongtermincentivegrantsweremadetoseniorexecutivesinthe2012x1nancialyear.RemunerationpolicyAnumberoftechnicalchangesweremadetotheRemunerationPolicytoclarifyitsoperationunderAPRAx19sremunerationprudentialstandards.Thechangesdidnotalterthedesignorstructureofthegroupx19sremunerationarrangementsinFY2012.NonexecutivedirectorfeesThebasenon-executivedirectorfeewasincreasedfrom129375to143000286000fortheChairx13twotimesthebasefeefortheperiod1July2011to31October2011andfrom143000to165000412500fortheChairx13twoandahalftimesthebasefeefortheperiod1November2011to30June2012.Therewerenoadditionalfeepaymentsforboardcommitteememberships.Inadditionthenon-executivedirectorsagaincontributed5000oftheirannualfeepaymenttofundtheboardscholarshipfordisadvantagedstudents.AdditionalfeeswerepaidtodirectorswhowereontheboardsofRuralBankLimitedSandhurstTrusteesLimitedandtheCommunityBankStrategicAdvisoryBoard.SeniorexecutivesalariesTheboardapprovedchangestoseniorexecutiveremunerationarrangementsinAugust2011inlinewithincreasesawardedtosalariedemployeesgenerally.Theoverallincreaseinx1xedremunerationforallseniorexecutivesandotherdirectreportstothemanagingdirectorforthe2012x1nancialyearwas3.5.CompanyperformanceTheCompanyx19soverallperformancefortheyeardidnotachievethetargetssetbytheboard.TheCompanyannouncedastatutoryafter-taxprox1tof195millionfortheyear.TheCompanyx19scashearningsresultwas323milliona3.9decreaseonthepreviousx1nancialyear.Thecashearningsresultequatedto84.2centspershareandrepresentsan8.7decreaseonthepreviousx1nancialyear.TheCompanyx19ssharepricedecreasedby145cents16.4andtheCompanyx19sannualdividendremainedx0atat60cents.Shorttermincentivex1cSTIx1dInAugust2012theboardonrecommendationofthegovernanceHRcommitteedecidedthatthecriteriaforestablishmentofagroupshorttermincentiveSTIperformancebonuspoolwerenotmetandnoSTIbonuspoolwasestablishedforthe2012x1nancialyear.AsnoSTIbonuspoolwasestablishednoSTIbonuseswerepaidtoseniorexecutivesforthe2012x1nancialyear.Longtermincentivex1cLTIx1dNolongtermincentivegrantsweremadetoseniorexecutivesinthe2012x1nancialyear.Belowisasummaryoftheoutcomesforpastgrants.Shareholdersapprovedanissueofx1veequalannualparcelsofperformancesharestothemanagingdirectoratthe2009AnnualGeneralMeetingAGMwiththeperformanceperiodsmeasuredoveronetox1veyearswiththex1nalperformanceperiodending30June2014.Nofurthergrantsareproposedduringtheperformanceperiod.Theboardalsoapprovedanissueofthreeequalannualparcelsofperformancesharestootherseniorexecutivesfollowingthe2009AGMwiththeperformanceperiodsmeasuredfromonetothreeyearswiththex1nalperformanceperiodending30June2012.Thevestedperformancesharesforthemanagingdirectorandtheotherseniorexecutivesaresubjecttoafurthertradingrestrictionwhichappliesforthelaterof2yearsfromtheendofeachparcelx19sperformanceperiodandthedatespecix1edintheoffer.In2010theboardapprovedasupplementarygranttoseniorexecutivestorex0ectchangesinseniorexecutiverolesmarketrelativitiesandtore-alignthemixofshortandlong-termincentivecomponentswithperformanceperiodsalsoending30June2012.HalfofeachannualparcelofperformancesharesissubjecttoearningspershareEPSandtotalshareholderreturnTSRtests.TheEPStestfortheparceltestedon30June2012whichincludedpreviousparcelsrolledoverfrom2010and2011forretestingwasnotmet.ForthemanagingdirectortheseperformanceshareshavebeenrolledoverforretestinginFY2013.Forotherseniorexecutivestheperformanceshareparcelstestedon30June2012havelapsed.Theotherhalfofeachannualparcelofperformancesharesissubjecttotheexecutivex19scontinuedemploymentwiththeCompany.Therelevantemploymentdateunderthegrantwas30June2012andaccordinglythe2012parcelvestedforexecutiveswhoreceivedthegrantandwereemployedbytheCompanyatthatdate.