Reserve Bank of Australia Annual Report – 2015 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 2014/15. During the financial year, a total of 22 individuals occupied these positions for all or part of the year, the same as 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, the Payments System Board and the Reserve Bank Board Audit Committee are determined 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.

In May 2014, the Remuneration Tribunal determined that no adjustment would be made at that time to the remuneration of offices in its jurisdiction, including those of the Governor and Deputy Governor. Accordingly, remuneration of these positions was unchanged in 2014/15. Total remuneration for the position of Governor was $1,010,436 (including salary of $862,256) and for the Deputy Governor was $755,980 (including salary of $593,782).

The RBA discloses remuneration of directors and management in terms of both AAS and the FRR; these disclosures are set out below.

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 disclosed on an accruals basis and show the full cost to the consolidated entity; they include all leave and fringe benefits tax charges.

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 as well as the cost of (or gain on) revaluing previously accrued leave entitlements in accordance with AASB 119 (refer Note 10).

There were no loans during 2014/15 and 2013/14 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 complied with the Bank's procurement policy.

Disclosure under FRR

The disclosures on senior management remuneration required under section 27 of the FRR are shown in Table B below. Aggregates in Table B are similar to those in Table A and correspond to the same group of 22 individuals with responsibility for planning, directing and controlling the activities of the RBA. The figures in Table B exclude valuation changes in accumulated annual and long service leave entitlements, consistent with the requirements of the FRR.