At the beginning of each financial year, every Rest Group Executive is assigned a number of outcome-related performance goals that reflect a combination of Organisational and Business Unit/individual objectives that align with the Rest Scorecard and Strategic Plan and reflect priorities and key strategic projects for the relevant financial year. Each goal is assigned a weighting and 60% of the total weighting is assigned to shared organisational goals and 40% to individual or Business Unit goals. No goal has a weighting of less than 10%.
Goals are also 50% financial and 50% non-financial and are designed to deliver long-term outcomes for the organisation.
All goals are reviewed by the People, Culture and Remuneration Committee of the Rest Board in the first quarter of each Financial Year.
Executives and their Manager (CEO) complete quarterly discussions on performance, behaviours, support and development.
Overall performance is assessed on:
- Job knowledge and the requirements of the position;
- Achievement of balanced scorecard and performance goals; and
- Demonstrated behaviour of Rest Effect values.
Assessment of performance against goals takes account of objective and quantifiable evidence, including performance against balanced scorecard goals, audit findings, stakeholder and customer feedback and financial management.
Assessment of behaviour is undertaken using the Rest Values and Behaviours framework by the CEO, or Rest Management where appropriate. This includes steps that the Group Executive has taken to:
- Deliver to the Rest Effect culture framework
- Create an engaged workforce (with specific metrics to improve and enhance the team position)
Any entitlement to a short-term incentive (STI) payment may be discounted if, in the opinion of the CEO, the individual has:
- received “red flag” ratings of Required Growth in two of the values and behaviours framework over the course of the financial year;
- not achieved most of the requirements of their development plan, including demonstration of increased effectiveness in areas of personal weakness;
- demonstrated improvement but further development and improvement is expected;
- required more than normal counsel, guidance and direction from their Manager; or
- performed or behaved at a level below that expected of an experienced and fully effective leader.
Overall assessment of performance will take account of performance against goals and behaviour against values. Where, in the opinion of the CEO, an individual has demonstrated a serious breach or sustained failure to act in accordance with Rest’s values, a recommendation may be put to the Board that no STI be payable.
All performance assessments for Rest Executives are reviewed by the People, Culture and Remuneration Committee of the Rest Board, and any changes to remuneration (including STI payments) are subject to the approval of the Rest Board.
The procedures to evaluate the performance of the senior managers takes place annually.