Perpetual Limited · ASX:PPT
Perpetual — Shareholder Meeting (October 2005)
8 slides from Perpetual's shareholder meeting presentation, Oct 18, 2005
Slide 1: 2005 Annual General Meeting
2005 Annual General Meeting Chairman of the Human Resources and Remuneration Committee’s address to shareholders 18 October 2005 repens
Slide 2: Perpetual's remuneration is based on five core principles
Perpetual’s remuneration is based on five core principles: 1. Variable pay for all employees forms a significant part of overall remuneration; 2. Variable pay is linked to shareholder wealth creation; 3. Short-term incentive payments are uncapped; 4, Short-term incentive payments are made out of rea
Slide 3: Perpetual's remuneration comprises three key elements
Perpetual’s remuneration comprises three key elements: 1. A fixed remuneration component; 2, A short-term incentive component; and 3. Along-term performance and retention component Perpetvaip
Slide 4: 1. Fixed remuneration component
1. Fixed remuneration component is: # Set around the median level for each employee within the market range; and « Developed for individual market ranges with reference to appropriate comparator companies i.e. Australia-based financial institutions Perpetvaip
Slide 5: 2. Short term incentive (STI) is funded out of operating profits
2. Short term incentive (STI) is funded out of operating profits Operating profit STI Index after tax of Operating Profits After Tax (2005 = 100) $125M> —t— Short term incentive (index) p160 p 140 10075 p 120 755 Pico Pso 507 Leo P40 257 P20 0 2001 2002 2003 2004 2005 Perpetual Year P S
Slide 6: 3. Long term incentive (LTI) component
3. Long term incentive (LT!) component « Creates ownership mindset # Important and growing proportion of remuneration a Challenging performance hurdles: ~ 50 per cent vests based on the company’s Total Sharehoider Return (TSR); - 50 per cent vests based on the growth in the company’s earnings per sh
Slide 7: Overview of Asset Managers' share plans
Overview of Asset Managers’ share plans « Multi-year program - shares vest over many years « Vesting based on performance « Substantial non-compete clauses constitute a career commitment fo Perpetual Perpetvaip
Slide 8: Other initiatives in 2005
Other initiatives in 2005 « Closing of Non-executive Director Retirement Benefit Scheme « Discontinuation of Employee Share Purchase Plan, which included non-recourse loans to staff « Launch of Tax Exempt Employee Share Plan and Tax Deferred Employee Share Plan Perpetvaip