Investor Presentaiton
78
1
F23 Remuneration at a glance
1.1
Alignment of remuneration framework to our strategic priorities
1.1
Alignment of remuneration framework to our strategic priorities (continued)
79
19
Annual Report 2023
Woolworths Group
Our remuneration framework is designed to support Woolworths Group's strategic priorities. Clear principles guide our
remuneration decisions and design. As we operate in a dynamic and rapidly evolving market, we review our approach
to remuneration on a regular basis so that we remain aligned to market expectations and business objectives.
Strategic priorities
Living our purpose
Build a better and
safer tomorrow for our
customers and team
Leverage Everyday
Rewards to unlock more
value for our members
Remuneration principles
F23 remuneration framework
Our purpose: We create better experiences together for a better tomorrow
Total Fixed
Remuneration (TFR)
Delivering compelling
customer propositions
Woolworths Retail: help all
customers find their Woolies worth
Woolworths Food Company:
grow brands, products and
capabilities unique to Woolworths
BIG W and Speciality (W Living):
help our customers find real value
and easy everyday solutions
Strengthening our
foundations
Retail Platforms: scale
value delivery in our Group
businesses and directly with
third parties
Group Platforms: support
Group priorities and focus
on E2E productivity
Objective: Support our strategic priorities
TFR consists of base salary,
superannuation and car allowance.
•
TFR is set in relation to the external
market and considers:
strategic value of the role
size and complexity of the role
individual responsibilities
experience and skills.
TFR is positioned so that total target
remuneration (TTR) is around the
median of our comparator group,
which includes the ASX25 plus
additional reference to major national
and international retailers as required.
Generally, an executive who is new to
a role will start on a TTR package below
the median and as they develop skills
and experience in the role their pay may
progress beyond the median position.
Our remuneration framework supports the Group strategy
Short-Term
Incentive (STI)
50% of the STI is delivered in cash
and the remaining 50% is deferred
as share rights for two years.
Business performance is
measured through a balanced STI
scorecard, with 60% weighted
.
.
on financial objectives and 40%
on non-financial objectives:
Sales (20%)
.
Earnings Before Interest and
Tax (EBIT), before significant
items (20%)
Working Capital Days (20%)
Customer Satisfaction (20%)
Safety (20%).
Individual performance
includes assessment against
business, strategic and ways
of working goals and core values.
Long-Term
Incentive (LTI)
Performance rights vesting subject
to performance progress over
three years.
The LTI aligns executives to overall
company performance through
three measures focused on strategic
business drivers and long-term
shareholder return:
Relative Total Shareholder Return
-40% weighting
(rTSR)
Return on Funds Employed (ROFE)
- 40% weighting
Reputation - 20% weighting.
The Reputation measure replaced the
Sales per square metre measure for
LTI plans vesting from F24.
1
highlights
Performance
2
Business
review
3
Directors'
Report
1st
Reinforce
our purpose,
customer 1st team
1st strategy and
ways of working
Build the retailer
of the future
by attracting,
retaining and
motivating team
members with
diverse skills,
capabilities
and backgrounds
Encourage our
team members to
think and behave
like owners
Drive short
and long-term
performance
consistent
with our
risk appetite
1.2
F23 executive KMP remuneration mix
Be simple and
easily understood
What is the
remuneration mix
for executive KMP?
Remuneration governance
In delivering remuneration outcomes to team members, the Board may apply discretion to deliver appropriate outcomes
for our shareholders, customers and team. The Board reviews People Committee (PC) recommendations based on the
CEO's proposals for Group and individual performance and incentive outcomes. This review incorporates advice from
the Chief Legal Officer, Chief Risk Officer, Chief People Officer and Head of Internal Audit, as well as consultation with
committee chairs and all directors.
Total Target Mix
Total fixed
remuneration 33.4%
Total Maximum Mix
A consistent remuneration mix applies for all executive KMP. It is strongly weighted
towards variable remuneration, with performance-based pay contributing 67%
of total target mix, and 50% of total target reward delivered in deferred equity.
Performance based
Target STI 33.3% (100% of TFR)
16.65% cash
16.65% deferred
share rights
Target LTI 33.3% (100% of TFR)
Performance based
Performance rights
Equity
Total fixed
remuneration 23.8%
Maximum STI 35.7% (150% of TFR)
Maximum LTI 40.5% (170% of TFR)
17.85% cash
17.85% deferred
share rights
Performance rights
Equity
4
Report
Financial
LO
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