Page 47

2015 Ramsay Health Care Limited Annual Report

45                                                                   RAMSAY HEALTH CARE LIMITED DIRECTORS’ REPORT (CONTINUED) REMUNERATION REPORT – Audited Dear Shareholders We are pleased to present you with the 2013 Remuneration Report. A key focus of the Report is to demonstrate how our remuneration policies and practices are linked to the Company’s performance, not just from a design perspective but in terms of the outcomes they deliver in practice. FY2013 was another year of strong performance by Ramsay, both in terms of financial results, as well as the achievement of several significant strategic and operational milestones that will position Ramsay to continue delivering sustained returns to shareholders. Ramsay’s remuneration strategy has been highly effective in retaining key executive talent and motivating sustained high performance, without resulting in excessive levels of executive pay. While executives have been rewarded with vesting of the at-risk components of their remuneration, this has been a direct result of their success in delivering the Company’s strategy and the value they have created for shareholders. In spite of the sustained levels of high performance, the Board and Remuneration Committee have resisted the temptation to approve large increases in executive remuneration. For FY2014, the Board has approved a fixed remuneration increase for Executives which in no case exceeded 3%. Further, for FY2014 long-term incentive awards, the Board and Remuneration Committee have made it even more challenging for participants to achieve the minimum, threshold level of vesting in relation to the earnings per share performance hurdle. The Board was delighted during the year to agree a contract extension with the CEO and Managing Director, Chris Rex, that will see him continue in this role until at least 30 June 2016. The Board considers Mr Rex to be a key driver of the Company’s success, and is confident that Mr Rex will continue to provide outstanding leadership to Ramsay’s senior management team and to all staff across the Group. Non-Executive Directors’ fees are set having regard to various relevant factors discussed later in this Report, including responsibilities and risks of each Non-Executive Director and market competitiveness. Any increase in the level of these fees is only ever implemented where, following a considered review of the overall framework for Non-Executive Director remuneration, an increase is found to be warranted. On behalf of the Remuneration Committee and the Board, I commend this Remuneration Report to you. Yours sincerely Rod H McGeoch AO Chairman Remuneration Committee


2015 Ramsay Health Care Limited Annual Report
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