Reserve Bank of Australia Annual Report – 2014 Financial Statements Note 12 – Key Management Personnel
The key management personnel of the Reserve Bank are the Governor and Deputy Governor, non-executive members of the Reserve Bank Board, non-executive members of the Payments System Board and the Assistant Governors, who are the senior staff responsible for planning, directing and controlling the activities of the Bank. No new positions were added to this group in 2013/14. As a vacancy was filled on the Payments System Board, 22 individuals occupied these positions in 2013/14, one more than in the previous year.
The Reserve Bank Board determines the remuneration for the position of the Governor and Deputy Governor on a recommendation of the Board's Remuneration Committee, comprising three non-executive directors, and in terms of arrangements governed by the Remuneration Tribunal. Fees for non-executive members of the Reserve Bank Board and the Payments System Board are governed by the Remuneration Tribunal. The Governor, in consultation with the Board Remuneration Committee, determines the remuneration of Assistant Governors and other staff. For staff generally, remuneration aims to be market competitive and designed to attract and retain appropriately skilled people. Remuneration levels for employees are externally benchmarked.
The Remuneration Tribunal advised an increase in the remuneration rate for the position of Governor of 2.4 per cent, effective from 1 July 2013. The Board determined remuneration for this position accordingly. Consequently, total remuneration for the position of the Governor was $1,010,456 in 2013/14 (including salary of $862,256), compared with $986,773 (salary of $842,285) in 2012/13.
Further detail on remuneration of staff is set out below. The RBA discloses remuneration of directors, executives and management in terms of both AAS and the FMOs.
Disclosures under AAS
Under AAS, disclosure of remuneration of key management personnel is based on AASB 124 – Related Party Disclosures, as shown in Table A below. The figures are on an accruals basis and show the full cost to the consolidated entity; they include all leave and all fringe benefits tax charges.
| 2014 $ | 2013 $ | |
|---|---|---|
| Short-term employee benefits | 5,375,433 | 5,076,213 |
| Post-employment benefits | 1,010,678 | 968,976 |
| Other long-term benefits | 52,929 | 85,030 |
| Share-based payments | – | – |
| Termination benefits | – | – |
| Total compensation | 6,439,040 | 6,130,219 |
| (a) Comparative figures for the financial reporting period ended 30 June 2013 have been restated in terms of the revised AASB 119 – Employee Benefits (refer Note 1(l)). | ||
Short-term benefits include cash salary and, where relevant for executives, lump sum payments, motor vehicle benefits, car parking and health benefits and the fringe benefits tax paid or payable on these benefits. Post-employment benefits include superannuation benefits and, in the case of staff, health benefits. Other long-term benefits include long service leave and annual leave.
There were no loans during 2013/14 and 2012/13 by the RBA to any key management personnel.
There were no related party transactions with Board members or executives. Transactions with director-related entities which occurred in the normal course of the RBA's operations were incidental and conducted on terms no more favourable than similar transactions with other employees or customers; any vendor relationships with such entities were at arm's length and were compliant with the Bank's requirements for procurement.
Disclosure under FMOs
The disclosures on remuneration required in terms of Division 23 of the FMOs are shown in Tables B to E below. Aggregates in Table B are similar to those in Table A but exclude information for non-executive directors, which is shown separately in Table E.
| 2014 $ | 2013 $ | |
|---|---|---|
| Short-term employee benefits | ||
| Salary | 3,975,575 | 3,776,765 |
| Performance-related payments | 62,015 | 57,858 |
| Other(b) | 234,374 | 234,490 |
| Total short-term employee benefits | 4,271,964 | 4,069,113 |
| Post-employment benefits | ||
| Superannuation | 914,407 | 884,968 |
| Other(c) | 28,702 | 27,466 |
| Total post-employment benefits | 943,109 | 912,434 |
| Other long-term benefits | ||
| Annual leave accrued | 333,183 | 319,568 |
| Long service leave | 132,456 | 126,978 |
| Total other long-term benefits | 465,639 | 446,546 |
| Termination benefits | – | – |
| Total employment benefits | 5,680,712 | 5,428,093 |
| (a) This table is based on remuneration for the executives, including the
Governor and Deputy Governor, who are included in key management personnel.
It is prepared on an accruals basis. Figures for annual and long service
leave in ‘Other long-term benefits’ include the accrual of
leave in the relevant year but not the cost of revaluing leave entitlements
previously accrued (as in Table A above). (b) Other short-term employee benefits include car parking and health benefits and, for relevant executives, motor vehicle and related benefits. (c) Other post-employment benefits include health benefits. |
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The figures in Tables C and D are prepared in accordance with the FMOs and are on a cash basis derived from information on the payment summaries for individual employees. Differences between figures in Table C and those determined by the Remuneration Tribunal are due to measurement differences. The average adjustment to gross salary for Assistant Governors was 3.7 per cent in 2013/14; these staff were eligible for lump sum performance-related payments in 2013/14 and 2012/13.
| Remuneration band | Number of staff | Reportable salary(b) | Contributed superannuation(c) | Reportable allowances(d) | Lump sum payment(e) | Total |
|---|---|---|---|---|---|---|
| Total remuneration: | ||||||
| $555,000 to $584,999 | 3 | 463,781 | 94,252 | – | 9,356 | 567,389 |
| $585,000 to $614,999 | 1 | 498,304 | 100,488 | – | 11,494 | 610,286 |
| $615,000 to $644,999 | 2 | 518,415 | 108,706 | – | 11,227 | 638,348 |
| $735,000 to $764,999 | 1 | 636,507 | 126,476 | – | – | 762,983 |
| $1,035,000 to $1,064,999 | 1 | 863,161 | 183,644 | – | – | 1,046,805 |
| 8 | ||||||
| Remuneration band | Number of staff | Reportable salary(b) | Contributed superannuation(c) | Reportable allowances(d) | Lump sum payment(e) | Total |
|---|---|---|---|---|---|---|
| Total remuneration: | ||||||
| $525,000 to $554,999 | 2 | 442,902 | 90,069 | – | 8,242 | 541,213 |
| $555,000 to $584,999 | 2 | 467,220 | 94,476 | – | 8,658 | 570,354 |
| $585,000 to $614,999 | 1 | 473,884 | 105,031 | – | 13,257 | 592,172 |
| $615,000 to $644,999 | 1 | 503,282 | 104,883 | – | 10,802 | 618,967 |
| $705,000 to $734,999 | 1 | 580,808 | 126,476 | – | – | 707,284 |
| $975,000 to $1,004,999 | 1 | 815,234 | 179,407 | – | – | 994,641 |
| 8 | ||||||
| (a) This table is based on remuneration for the executives included in the
RBA's key management personnel. Figures are averages for the individuals
contained in each remuneration band. The figures are disclosed in terms
of the FMOs and are on a different measurement basis from AASB 124 and
as determined by the Remuneration Tribunal. (b) In terms of the FMOs, ‘Reportable salary’ includes gross payments (including salary less any lump sum amounts paid), net reportable fringe benefits and reportable employer superannuation contributions. Reportable salary as prescribed by the FMOs differs from superannuable salary. It excludes salary sacrificed amounts (other than superannuation). The exclusion of salary sacrificed amounts means that increases in ‘Reportable salary’ and ‘Total’ remuneration, as measured, will differ from the increase in actual salary and total remuneration of these positions if salary sacrificed amounts (other than superannuation) change from year to year. In 2012/13, the Governor salary sacrificed the lease on a motor vehicle and for the associated fringe benefits tax; in 2013/14, the conclusion of that arrangement meant that the ‘Reportable salary’ and ‘Total’ remuneration amounts shown in Table C rose by more than the actual increase in salary and total remuneration for this position. The adjustment made to the remuneration of the position of Governor was 2.4 per cent, as advised by the Remuneration Tribunal. (c) ‘Contributed superannuation’ amount is the average amount of actual superannuation contributions paid. (d) ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries. (e) ‘Lump sum payment’ represents the average actual lump sum amounts paid during the reporting period for staff in the remuneration band. |
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Table D includes disclosures for RBA and NPA staff. The increase in the number of staff in 2013/14 in the initial remuneration bands mainly reflects salary increases received during the financial year that resulted in more RBA staff being remunerated at levels above the reportable threshold; it does not primarily reflect the creation of new management positions. The average salary increase for RBA staff shown in Table D was 3.8 per cent in 2013/14; lump sum performance-based payments and modest career increments were also paid to some individuals. NPA staff are not employees of the Bank and their terms and conditions are determined by NPA. Lump sum performance-based payments are available to NPA staff.
| Remuneration band | Number of staff | Reportable salary(b) | Contributed superannuation(c) | Reportable allowances(d) | Lump sum payment(e) | Total |
|---|---|---|---|---|---|---|
| Total remuneration: | ||||||
| $195,000 to $224,999 | 54 | 174,187 | 34,568 | 15 | 4,501 | 213,271 |
| $225,000 to $254,999 | 29 | 193,469 | 38,512 | 2 | 4,331 | 236,314 |
| $255,000 to $284,999 | 16 | 223,185 | 41,536 | – | 7,459 | 272,180 |
| $285,000 to $314,999 | 21 | 244,152 | 45,283 | 3 | 7,893 | 297,331 |
| $315,000 to $344,999 | 9 | 270,501 | 46,805 | – | 9,862 | 327,168 |
| $345,000 to $374,999 | 2 | 290,923 | 57,168 | – | 5,240 | 353,331 |
| $375,000 to $404,999 | 5 | 336,859 | 53,315 | – | 5,186 | 395,360 |
| $405,000 to $434,999 | 2 | 366,998 | 60,197 | – | 5,517 | 432,712 |
| $435,000 to $464,999 | 7 | 377,665 | 69,670 | – | 7,148 | 454,483 |
| $495,000 to $524,999 | 2 | 420,530 | 84,254 | – | 7,520 | 512,304 |
| $555,000 to $584,999 | 1 | 415,978 | 49,940 | – | 105,788 | 571,706 |
| 148 | ||||||
| Remuneration band | Number of staff | Reportable salary(b) | Contributed superannuation(c) | Reportable allowances(d) | Lump sum payment(e) | Total |
|---|---|---|---|---|---|---|
| Total remuneration: | ||||||
| $195,000 to $224,999 | 49 | 170,894 | 33,171 | 34 | 4,719 | 208,818 |
| $225,000 to $254,999 | 19 | 193,065 | 39,209 | – | 5,353 | 237,627 |
| $255,000 to $284,999 | 21 | 218,829 | 43,483 | 39 | 7,721 | 270,072 |
| $285,000 to $314,999 | 9 | 244,171 | 47,675 | – | 9,427 | 301,273 |
| $315,000 to $344,999 | 7 | 267,601 | 48,793 | – | 11,664 | 328,058 |
| $345,000 to $374,999 | 3 | 304,878 | 48,638 | – | 3,364 | 356,880 |
| $375,000 to $404,999 | 2 | 309,365 | 60,975 | – | 5,589 | 375,929 |
| $405,000 to $434,999 | 5 | 352,013 | 70,336 | – | 6,433 | 428,782 |
| $435,000 to $464,999 | 3 | 375,390 | 64,426 | – | 7,537 | 447,353 |
| $465,000 to $494,999 | 1 | 394,151 | 80,310 | – | 7,360 | 481,821 |
| $495,000 to $524,999 | 1 | 413,425 | 81,857 | – | 7,502 | 502,784 |
| $555,000 to $584,999 | 1 | 402,886 | 47,113 | – | 106,070 | 556,069 |
| 121 | ||||||
| (a) This table shows remuneration for staff of the RBA and NPA whose reportable
remuneration was $195,000 or more in the year, and whose remuneration was
not required to be disclosed in Table C. Each row shows an average figure
based on the number of staff in each remuneration band. These figures are
disclosed on a cash basis. (b) ‘Reportable salary’ includes gross payments (including salary less any lump sum amounts paid), reportable fringe benefits (net amount) and reportable employer superannuation contributions. (c) ‘Contributed superannuation’ amount is the average amount of actual superannuation contributions paid. (d) ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals' payment summaries. (e) ‘Lump sum payment’ represents the average actual lump sum amounts paid during the reporting period for staff in the remuneration band. |
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Table E reports total remuneration earned by non-executive directors who are members of the Reserve Bank Board, the Payments System Board and the NPA Board. Non-executive directors of NPA who are RBA executives are not paid directors' fees.
| Number of directors | ||
|---|---|---|
| 2014 | 2013 | |
| $0 to $29,999 | 3 | 3 |
| $30,000 to $59,999 | 5 | 4 |
| $60,000 to $89,999 | 5 | 5 |
| $90,000 to $119,999 | 1 | 1 |
| Total | 14 | 13 |
| Total remuneration received ($) | 798,045 | 685,626 |