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Note 5: People and Relationships

This section describes a range of employment and post-employment benefits provided to our people and our relationships with other key people.

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5.1: Employee Provisions

  2017
$’000
2016
$’000
Annual and long service leave 1,660 1,199
Total employee provisions 1,660 1,199

5.2: Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly. The Group has determined the key management personnel to be the Chief Executive Officer, Chief Governance and Strategy Officer, Chief Financial Officer, General Counsel, Chief Origination & Transaction Officers and the Chief Investment Risk Officer. While the Chair of the Board and other Board members have authority and responsibility for planning, directing and controlling the activities of the Group, they are not considered “Management” and have been excluded from the table of key management personnel remuneration below. Remuneration of Board members is disclosed separately in note 5.3.

  2017
$
2016
$
Short-term employee benefits    
Salary 2,731,623 2,079,796
Performance bonuses 1,061,105 547,285
Retention bonuses 68,295 299,334
Redundancy payments - 345,129
Travel allowances 16,800 20,800
Annual leave (paid) / accrued (51,396) 1,669
Total short-term employee benefits 3,826,427 3,294,013
  2017
$
2016
$
Post-employment benefits    
Superannuation 143,129 105,008
Total post-employment benefits 143,129 105,008
Other long-term employee benefits    
Long service leave (paid) / accrued (8,126) 8,527
Total other long-term employee benefits (8,126) 8,527
Total key management personnel remuneration expenses 3,961,430 3,407,548

The total number of senior management personnel that are included in the above table is 9 (2016:8).

5.3: Directors’ Remuneration 

  2017
No.
2016
No.
The number of non-executive directors of the Corporation included in these figures is shown below in the relevant remuneration bands:    
$0 to $29,999 - 1
$30,000 to $59,999 5 5
$90,000 to $119,999 1 1
Total 6 7
  2017
$
2016
$
Total remuneration received or due and receivable by non-executive directors of the Corporation 401,871 411,923

The Corporation has no executive directors.

5.4: Related Party Disclosures

Transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 30 June 2017, the Group has not recorded any impairment of receivables relating to amounts owed by related parties (2016: $Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

The Group has not entered into any direct transactions with key management personnel other than in relation to remuneration for services provided, as disclosed in notes 5.2 and 5.3.

Transactions with Director-Related Entities

The following table provides the total amount of transactions that were entered into with director-related parties during the financial year ended 30 June 2017. The directors involved took no part in the relevant decisions of the Board.

Director Related Party Transaction Year Purchase from
Related Party
$’000
Receipt from
Related Party
$’000
Anna Skarbek ClimateWorks Australia Technical advice 2017 4 -
Martijn Wilder AM Baker & McKenzie Legal advice 2017 32 -
Martijn Wilder AM Baker & McKenzie Legal advice 2016 6 -

There were no balances outstanding at 30 June 2017 (2016: $Nil) in relation to these transactions.

Ms Anna Skarbek is the Chief Executive Officer of ClimateWorks Australia. 

Mr Martijn Wilder is a partner at Baker & McKenzie and is also the chairman of the Australian Renewable Energy Agency (‘ARENA’).

Mr Paul Binsted is a non-executive director of Moorebank Intermodal Company which is participating in the development of the Moorebank Intermodal Terminal with Qube Holdings Limited, a company that has received a $150 million loan from the CEFC.

Transactions with Other Related Entities 

During the year the Corporation incorporated a subsidiary, CEFC Investments Pty Ltd, and has loaned funds to that company on commercial terms. Balances arising from these transactions are disclosed in the Corporation’s stand-alone financial statements in Note 7 and have been eliminated in these Consolidated Financial Statements. 

Under the CEFC Act, The Corporation has a number of transactions with the Commonwealth. The principal transactions are those related to the amounts drawn from or repaid into the CEFC Special Account that is administered by the Department for the Environment and Energy.

The following transactions were entered into with other related parties under common control during the financial year ended 30 June 2017:

Related party Purpose  2017
$
2016
$
Comcover General insurance premiums 70,045 64,097
Comcare Workers compensation insurance premiums 63,562 44,348
Department of the Environment and Energy Executive search for new Board members 25,000 -
Infrastructure and Projects Financing Agency Short-term secondment at no charge of two part-time staff to assist in the initial set-up and operation of this new agency - -

 

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