Senate Rural and Regional Affairs and Transport Legislation Committee [Part 2], , 2:25:09 to 2:32:03
Review of Airservices Australia's executive remuneration, including termination benefits for senior staff and organizational transformation costs.
Topics: Public service staffing, Workplace culture
Speakers: Senator Bridget McKenzie, Ms Jenny Messer, Speaker 21, Senator Glenn Sterle, Unknown Speaker, Rob Sharp
couple of questions and then I think um we might put some on notice noticing we've got a lot of agencies to get through in the time available. in 2025 the annual report the annual reports 2.72 million dollars was paid out in termination benefits for key executives. How many executives received termination benefits and from what roles in the organization? Is that a Mis- Mr. Webster or a Mr. Curran question?
that would probably be for Ms. Meza.
As context I mentioned the
transformation where we did remove quite a few executives and it does relate to that period.
>> Excellent. So, yep. What roles and who?
>> Uh so, Senator, I'm going back to the previous annual report at that time and so there were a number of roles that were restructured. The Chief Financial and Transformation Officer role, that portfolio was restructured. Chief Service Delivery Officer role was transformed and restructured. The Chief Transformation Officer role was changed. Our Head of Safety role was changed as was There was one more. Sorry, I'm just looking at the list.
>> Chief Strategy and Execution Officer.
>> That was the other one, the Chief and I said Transformation. Thank you for correcting me, Mr. Webster. They were the roles that were made.
>> So, sorry, was that five?
>> That's correct.
>> Five executives. and can you just run through the different termination benefits?
>> Uh so, for each of those terminations they were based on the contracts for each of those individuals. Now, naturally some of those individuals had been with the organization quite some time so they had different provisions within their contracts, but essentially the contract provision for termination focused largely on notice in lieu and any form of restraint clause that was in there. So, the termination payments were largely around that. Naturally, the payment of any accrued entitlements as well.
>> Is there any attributable reason for the change in senior executives? It was reported in the 2024 annual report that former Mr. Harfield, received a termination payment of 997 thousand nine hundred eighty-seven dollars when his contract was not
>> So, at that point in time when his contract was not renewed, Mr. Harfield's exit, again based on his contract termination, um that was based on the notice period paid in lieu not served, and his non-compete period where Mr. Harfield was restrained um from working within the sector. That was the the composition of that um that figure.
>> So, what is the cost of executive remuneration, including allowances and other benefits, for the 2025-2026 financial year?
>> The 2025-2026 um annual report figures, in terms of um base salary, the the bottom line for that is 6.6 million dollars, but I will defer to Mr.
>> Including allowances and other benefits, not the base salary. Mr. Webster.
>> I'll take that question if you just give me a second to find my notes. Thank you.
>> Is there a chance that we can let a few agencies go, or do you think we will get And I've been asking for a little while now. >> We don't have it. >> Just so we don't hang leave those poor devils hanging.
>> other questions. We're not the ones holding this up.
>> Is this all the answers for 2025-2026?
>> Yes, I I have the answer if you if you'd like to take it at this time. So, we we've still got tiered executive positions in the executive team. The total disclosed executive remuneration, uh this is the total uh number, Senator, not the base number, is 7.34 million uh um in in that case, compared with 9.91 million uh in the previous financial year. That, on the face of it looks like a reduction of of of about 2 million. However, there was 2.72 million of termination payments included in that previous number. So, broadly the numbers are actually consistent.
>> Over what number of people?
It's It's 10 people in the executive team. Uh but that 7.34 million number I quoted you was the full executive remuneration, and that was across 14 individuals.
>> And does that include allowances and other benefits?
>> Yes, it does.
>> Excellent. Thank you. Um in financial year '25, the cost of allowances and other benefits for key executives increased um from $50,000 to $195,000. That's almost a four-time increase. What was the reason for those increases?
>> I I'm sorry, Senator. Was that in financial year '24-25 or '25-26?
I would assume '24-25. '25 in financial year '25. So, '25-26. The The period we've just reported on.
>> Yeah, thank you. Yeah, if you don't mind, I'll just take a few seconds to find my notes. >> So, that was the other benefits and allowances. Question? Uh I have I have the full list of those benefits payments. I don't have a reason for the year-on-year increase.
>> Well, it's not a year It's a four-time increase. So, if you on notice could take the reason. >> Uh I have no further questions for Air Services Australia.
>> Thank you, but I know that Senator Colbeck does. And I do. >> Stirling Griff Cassidy, yes. >> And you do as well. Colleagues, um I'm not going to rush you, but we've got take into consideration that um we're not going to get to a few of these agencies. We need We can't just keep them hanging on till 11:00. I don't think that's fair. Is there a couple that we can send home? Deputy Chair.
>> I have no requests for agencies.
>> None, so well, the committee will >> But
other senators might.
>> All right, so what Deputy Chair and myself will work on this in the next couple of minutes. Senator Colbeck, if you want to take the floor.