27Minimum amount of variable remuneration to be deferred

27 Minimum amount of variable remuneration to be deferred

(1) The amount of an accountable person’s variable remuneration that is required to be deferred under subparagraph 25(1)(a)(ii) is 40% of the accountable person’s variable remuneration for the financial year in which the minimum deferral period for the variable remuneration starts.

Note 1: For when the minimum deferral period starts, see section 28.

Note 2: For the applicable financial year, see subsection (7) of this section.

Working out value of variable remuneration (2) For the purposes of this section, the value of variable remuneration of an accountable person that has been deferred is taken to be: (a) if a written notice given under subsection (3) determines a way to work out that value—the value worked out in that way; or (b) if paragraph (a) does not apply and the Regulator rules prescribe a way to work out that value—the value worked out in that way; or (c) if paragraphs (a) and (b) do not apply—what would have been the value of that remuneration if it had instead been paid or transferred to the person at the start of the minimum deferral period for the variable remuneration. (3) The Regulator may, by written notice given to an accountable entity or a significant related entity, determine the way to work out, for the purposes of this section, the value of variable remuneration of accountable persons of the accountable entity or significant related entity.

Note: A decision under this subsection is a reviewable decision (see Part 5 of Chapter 3).

(4) The Regulator must give a copy of a determination it makes under subsection (3) to each person who, when the determination is made, is an accountable person covered by the determination. (5) If: (a) after a determination is made under subsection (3), a person becomes an accountable person of the accountable entity or significant related entity; and (b) the determination covers the person; the accountable entity or significant related entity must give a copy of the determination to the person. Notice not a legislative instrument (6) A notice under subsection (3) is not a legislative instrument. Financial year (7) In determining an amount of an accountable person’s variable remuneration for the purposes of this section, use the financial year of the accountable entity or significant related entity of which the person is an accountable person.

Note: See section 8 for the definition of financial year.