7. Fair and responsible remuneration

Transfield Services aims to remunerate fairly and responsibly by ensuring reward for performance is competitive in the markets where the Company operates, and aligning executive reward with shareholders’ interests. 

The Company’s principles in relation to director and senior executive remuneration, and the level of remuneration, are set out in the remuneration report on pages 50 to 69 of this Annual Report.

Fees for non-executive directors are calculated on the extent of their involvement at Board and committee level. They are not based on the Company’s performance. The remuneration report contains information about retirement allowances for non-executive directors on page 54. This year, the Company is seeking shareholder approval for an increase in the non-executive directors’ fee pool, from $1,700,000 to $2,000,000. This increase is being sought in order to:

• have greater flexibility and capacity to increase the size of the Board, and
• attract and retain high-calibre directors.

The Company’s policy in relation to the prohibition of hedging remuneration that has been disclosed as ‘at risk’ is contained in the Company’s Share Trading Policy.