Avatar fallback

In this note (VIEW LINK) I review the outcomes of the company scorecard for FY2015 when a rating of 1.35 out of 2 was achieved. (For context: 2014's record year resulted in a company scorecard outcome of 1.8 out of 2). The productivity improvements are noted but as the CEO and CFO both noted in this morning's analyst call, the full impact of those improvements will be felt in 2016...yet 'doing' these things was rewarded in 2015 without any regard for revenue or profit performance. With the Group CEO receiving 82% of his maximum STI award for FY2015 performance, the multiplier effect of individual performance 'moved the dial' on the scorecard result in his favour. Looking ahead at the strategy and targets for FY2016, it is not clear the company scorecard in its current format would reward successful delivery of that strategy, given it lacks any explicit measures of profit performance, cost performance or cash flow.


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