Investor Presentaiton
84
Remuneration Report
Executive KMP
remuneration
2
85
Annual Report 2023
Woolworths Group
2.2
Long term incentive (continued)
Performance against: F21-23 LTI measures
The F21-23 WISP was granted effective July 2020, with challenging performance targets and demanding stretch objectives
to reach maximum outcomes. For the F21-23 WISP, performance was assessed against three equally-weighted measures,
Relative TSR, ROFE and Sales per square metre and an overall outcome of 49.9% of the maximum award was achieved.
The F21-23 Award
achieved 49.9%
of Maximum
(84.9% of Target).
F21-23 LTI MEASURE
OUTCOMES (% OF MAXIMUM)
Stretch
Target
#
Entry
rTSR 0.0%
ROFE 25.3%
Sales/sqm 24.6%
Total (% of Max)
49.9%
Total (% of Target)
84.9%
Relative Total Shareholder Return
Woolworths Group's TSR for the F21-23 WISP plan period was 32% (9.7% CAGR).
Strong shareholder return was driven by share price appreciation over the plan
period reflecting the Group's financial performance and a consistent dividend
payout ratio of 70-75%. Despite positive absolute TSR, the performance was
below the peer group median.
ENTRY: 50TH
PERCENTILE
TARGET: N/A
STRETCH: 75TH
PERCENTILE
ACTUAL RESULT:
36TH PERCENTILE
Return on Funds Employed¹
ROFE for F23 was 14.9% as a result of higher EBIT in F23 due to higher sales,
an improved operating rhythm, the absence of COVID costs, and the benefits
of ongoing investment in recent years.
ENTRY: 14.0%
TARGET: 14.6%
STRETCH: 15.5%
ACTUAL RESULT:
14.9%
2.3
What we paid executive KMP in F23 and their current shareholdings
The following pages compare actual, target, and maximum remuneration received during F23 for the executive KMP.
Amounts include:
•
•
TFR received (including base salary, superannuation, and car allowance)
other benefits received, including the deemed premium in respect of Directors' and Officers' Indemnity insurance
cash STI received for business and individual performance in F23
•
equity that vested or which has been performance tested as the end of F23 for the prior year plans
equity granted in F23 and all unvested equity awards (share rights for DSTI and performance rights for LTI).
Following market benchmarking completed by PwC, to maintain market competitiveness, it was determined that TFR
increases were warranted in F23 for the executive KMP other than the CEO. These increases, effective 1 September 2022
and the first in four years, were outlined in the F22 Remuneration Report.
The F21 DSTI plan vested on 1 July 2023, being the 50% portion of the F21 STI award that was deferred as share rights.
The F21 STI outcome was 115.5% of Target, higher than in F23.
At the conclusion of F23, performance was tested for the F21-23 WISP and the number of performance rights that convert
to shares was determined for the executive KMP. The disclosed value of the awards was determined using the Woolworths
Group five-day VWAP up to and including 1 July 2023.
For F21 DSTI and F21-23 WISP, both the increase in share price and the accumulated dividends that would have been
earned and reinvested over the period in the form of additional rights are contributing factors to the final value received
at vesting by the executive KMP. Additional rights are referred to as Dividend Equivalent Rights (DERS).
The individual tables on pages 85-87 also show progress against the minimum shareholding requirements (MSR)
as at 1 July 2023. The aggregate value of current shareholdings and unvested DSTI awards are used to determine
progress against MSR. Further detail on the MSR are included in Section 3.4. Each remuneration component in the
tables below has been rounded to the nearest thousand.
Term as KMP: Full Year
1
ROFE is calculated as EBIT before significant items for the previous 12 months as a percentage
of average (opening, mid and closing) funds employed.
Sales per square metre 2
Net Sales per square metre for F23 was $17,626, below F22 due to inclusion in the
F21-23 metric of BIG W, which has a significantly lower Sales per square metre
than Australian or NZ Food. Each business unit grew Sales per square metre
materially through the plan period, with an overall CAGR of 4.2% in sales and 1.3%
in space delivering a 2.2% compound increase in Sales per square metre.
ENTRY: $16,643
TARGET: $17,248
STRETCH:
$18,288
ACTUAL RESULT:
$17,626
2 Sales per square metre is calculated as annual reported turnover for Australian Food,
New Zealand Food, and BIG W divided by average trading square metres (based on market
reported trading square metres).
Brad Banducci Managing Director & CEO
Actual remuneration received for F23 v Target and Maximum ($000)
Actual Remuneration
3,011
2,600
1,193 1,838
8,646
4
Target Remuneration
2,600
1,300 1,300
2,600
7,804
4
Maximum Remuneration
2,600
1,950
1,950
4,420
10,924
Progress on MSR
as at 1 July 2023 ($000)
Equity granted
($000)
Unvested LTI and STI
awards ($000)
Vested LTI and
Target
5,200
F22 DSTI
Actual
15,538
F23 DSTI
1,193
Shares
9,841
F23-25 WISP
4,890
F21 DSTI
1,838
Total
6,083
F22-24 WISP
F23 DSTI
F23-25 WISP
Total
848
4,672
STI awards ($000)
including share
price uplift and DERS
1,193
4,890
11,603
F21 DSTI
F21-23 WISP
1,838
3,011
Total
4,849
F21-23 WISP
3,011
F22 DSTI
848
Total
15,538
1
highlights
Performance
2
Business
review
3
Directors'
Report
4
Financial
Report
LO
Other
information
LEGEND
TFR
Other benefits
Cash STI
Vested DSTI
Vested LTIView entire presentation