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Remuneration for Senior Staff Policy

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Section 1 - Purpose

(1) This policy provides information and guidance on the remuneration of senior staff.

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Section 2 - Application

(2) The senior staff remuneration policy applies to all positions at the University classified at levels Senior Staff Group A-E (SSGA-SSGE).

(3) This policy does not apply to the position of Vice-Chancellor and President.

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Section 3 - Roles and responsibilities

Position
Responsibility
Vice-Chancellor and President
Amends any or all of the total remuneration ranges.
Approves any movement within and above the remuneration range.
Approves performance pay bonus for senior staff who are not the Vice-Chancellor and President's direct reports at level SSGE.
Approves performance pay bonus for senior staff member who has worked in the position for less than 9 months of each calendar year in exceptional circumstances (on the recommendation of the Performance Pay Committee).
Sets the maximum performance pay bonus target which will apply to all divisions.
Makes recommendation for a performance pay bonus to the Governance, Nominations and Remuneration Committee for the Vice-Chancellor and President's direct reports at level SSGE.
All decisions made by the Vice-Chancellor and President in relation to this policy are final.
Head of Division
Recommends movement within or above the remuneration range.
Makes recommendation for a performance pay bonus to the Performance Pay Committee for senior staff who are not the Vice-Chancellor and President's direct reports at level SSGE.
Supervisor
Provides recommendation on performance pay bonus for senior staff member.
Senior Staff Member
Applies to participate in the flexible remuneration scheme.
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Section 4 - Total remuneration

Classification and Remuneration Structure

(4) The University’s senior staff classification structure for SSGA-SSGE is based on work point value, with a total remuneration range applied to each classification level (QUT staff access only). Total remuneration is inclusive of ‘total salary’ (salary, tenure surrender and loading where applicable) and superannuation.

(5) For senior staff contracts entered into:

  1. from 1 January 2024, the total salary is inclusive of the leave loading.
  2. prior to 1 January 2024, leave loading is a component of the total remuneration unless the senior staff has elected and the University has agreed to ‘buy out’ the leave loading component. If the ‘buy out’ option is agreed, the value of leave loading will be incorporated into total salary and the annual leave loading component removed.

(6) The total remuneration ranges have been, and will continue to be informed by the general market. Total remuneration ranges will normally be reduced by 15% for staff who have an underlying ongoing appointment.

(7) The Vice-Chancellor and President is authorised to amend any or all of the total remuneration ranges as follows:

  1. annually from the first full pay period in January;
  2. to ensure the remuneration ranges of senior staff remains competitive;
  3. to maintain a minimum gap of at least 10% between the highest level (and step) within the QUT Professional and Academic Enterprise Agreement and the bottom of the SSGA and SSGC remuneration range respectively;
  4. to address any variation in the percentage increase applicable in the annual general market review; and
  5. the interaction between the remuneration ranges.

(8) All Senior Staff will be paid at least the bottom of their remuneration range (noting remuneration range will be reduced by 15% for staff who have an underlying ongoing appointment).

Annual General Market Review

(9) An annual general market review will be undertaken and include advice or information from an external provider. The advice or information from the external provider will be considered by the Vice-Chancellor and President to make recommendations to the Governance, Nominations and Remuneration Committee, which could include different percentage increases for different classifications of senior staff.  

(10) Increases to the remuneration ranges will apply from the first full pay period in January of the applicable year.

Movement Within or Above a Remuneration Range

(11) Senior Staff (SSGA-SSGE) are eligible in exceptional circumstances for consideration of a movement within or above a remuneration range.

(12) The relevant Head of Division may recommend movement within or above the remuneration range in exceptional circumstances to the Performance Pay Committee. The Performance Pay Committee will make a final recommendation to the Vice-Chancellor and President, who has authority to approve any movement within or above the remuneration range. Recommendations are to be made, with supporting information/evidence of the exceptional circumstances.

(13) The Performance Pay Committee convenes at least three (3) times per year to consider recommendations, if required.

(14) Any adjustment to total remuneration will take effect from a nominated date as approved by the Vice-Chancellor and President.

Review of Movement Within or Above a Total Remuneration Range Decision

(15) Where a senior staff member has concerns regarding the decision on movement within or above a total remuneration range, the senior staff member will write to the Vice-Chancellor and President for a review of the matter. The Vice-Chancellor and President's decision will be final.

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Section 5 - Performance Pay Bonus

Eligibility

(16) To be eligible for a performance pay bonus, a senior staff member must work in the position (including senior staff engaged in multiple senior staff appointments) for at least nine (9) months of each calendar year and be employed as senior staff at the time the performance pay bonus is awarded. Periods of leave are not considered to be work and are therefore excluded for the purposes of determining eligibility. 

(17) Supervisor recommendations in circumstances when the senior staff member has worked for less than nine (9) months of each calendar year will only be approved by the Vice-Chancellor and President in exceptional circumstances (on the recommendation of the Performance Pay Committee).

(18) Exceptional circumstances may include new or returning appointees to senior staff positions who have completed less than nine (9) months of each calendar year and whose performance exceeds a satisfactory level, i.e. high or exceptional. Exceptional circumstances do not normally apply to employees who resign and leave post 31 December of the performance year.

Performance Pay Bonus

(19) The performance pay bonus is calculated on total salary as at 31 December in the year the bonus is earned. The range of the performance pay bonus will be 0-12% of the staff member’s total salary.

(20) Performance pay bonuses are one-off payments made as a lump sum, awarded in a single year, subject to PAYG tax. A staff member may elect to salary sacrifice all or a percentage of their performance pay bonus into their relevant superannuation fund. This election must be made prior to the period during which the bonus payment is earned.

(21) Annually, the Vice-Chancellor and President will provide guidance to the Performance Pay Committee on the performance pay bonus, target/ranges and the associated processes.

(22) In recommending and determining the size of a performance pay bonus, the supervisor should consider whether the staff member's individual performance against their performance objectives as part of the career planning, development and performance expectations discussions (as per the Remuneration for Senior Staff Policy) for the previous 12 month period is rated as high or exceptional.

Senior Staff – not the Vice-Chancellor and President's direct reports at level SSGE

(23) Where the supervisor determines that the performance by the senior staff member during this period exceeds a satisfactory level, i.e. high or exceptional, the supervisor will:

  1. make a recommendation regarding the percentage of performance pay bonus to be awarded to the senior staff member; and
  2. send the recommendation on performance pay bonus to the Head of Division along with any supporting documentation (for example, documentation could include a one-page summary of achievements completed by the senior staff member).

(24) The Head of Division will consider the recommendation and hold further discussions with the supervisor if required. The Head of Division will then confirm a recommendation and forward that recommendation to the secretary of the Performance Pay Committee.

Senior Staff – the Vice-Chancellor and President's direct reports at level SSGE

(25) Where the Vice-Chancellor and President determines that the performance of a SSGE direct report during this period exceeds a satisfactory level, i.e. high or exceptional, the Vice-Chancellor and President will make a recommendation on performance pay bonus to the Governance, Nominations and Remuneration Committee along with any supporting documentation (for example, documentation could include a one page summary of achievements completed by the senior staff member).

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Section 6 - Flexible Remuneration Scheme

(26) This scheme is available to senior staff provided their appointment is for a minimum period of 12 months. Participation in the scheme is voluntary.

(27) The University’s intention is to provide a scheme which involves the staff member reducing their total remuneration in return for non-cash benefits offered by the University. The staff member is required to meet the full cost of the provision of such benefits and associated taxation and administration costs.

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Section 7 - Higher Duties

(28) A senior staff member temporarily performing the duties of a designated higher duties classified position (e.g. acts in a vacant position or replaces a staff member on leave) will continue to be paid their substantive remuneration except for in exceptional circumstances in which complex additional responsibilities apply as approved by the Vice-Chancellor and President. For longer secondment periods a formal concurrent contract will be offered. This restriction will not apply for professional and academic staff acting in senior staff positions.

(29) The University will provide relevant employer superannuation contributions on any higher duties salary subject to the staff member’s ordinary superannuation arrangements, the terms of the staff member’s superannuation fund and any associated trust deed.

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Section 8 - Performance Pay Committee

Responsibilities

(30) The Performance Pay Committee undertakes the following responsibilities:

  1. considers recommendations from the Heads of Division on performance pay bonus for senior staff (SSGA-SSGE, excluding the Vice-Chancellor and President's direct reports in SSGE range) and make a final recommendation to the Vice-Chancellor and President; and
  2. reviews recommendations from Heads of Division on movement within or above a total remuneration range for all senior staff (SSGA-SSGE) and make final recommendations to the Vice-Chancellor and President.

(31) The Committee will make recommendations on performance pay bonus for relevant senior staff in light of individual achievement, corporate achievements for the preceding twelve-month period, affordability, parity across the senior staff group, as well as any other relevant information such as reclassification of a position.

Membership

  1. Vice-Chancellor and President's nominee;
  2. Provost/Senior Deputy Vice-Chancellor;
  3. Deputy Vice-Chancellor and Vice-President (Academic); and
  4. Vice-President (Administration) and University Registrar.

(32) Any conflicts with Committee business will be disclosed by members and managed in accordance with the Conflict of Interest Policy and Council Procedures 1 - Committees. Any member who has declared an interest in agenda items will not be present for the associated item at Performance Pay Committee.

Meeting Frequency

(33) The Performance Pay Committee typically meets at least three times a year.

Secretariat

(34) The Secretary of the Performance Pay Committee is the Vice-President (People) and Chief People Officer. Where the Committee is unable to reach consensus in any of its responsibilities, the Vice-President (People) and Chief People Officer will take the matter to the Vice-Chancellor and President for determination.

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Section 9 - Exceptions to Policy

(35) The Vice-President (People) and Chief People Officer is authorised to approve variations to this policy, in consultation with the Vice-Chancellor and President, in exceptional circumstances. Any such variation will be recorded by Human Resources.