28Minimum deferral period for variable remuneration

28 Minimum deferral period for variable remuneration

(1) The minimum deferral period for the variable remuneration of an accountable person of an accountable entity or a significant related entity is the period: (a) starting on the day determined under subsection (2) or (3); and (b) ending on the day determined under subsection (4). When the deferral period starts (2) The minimum deferral period for the variable remuneration of an accountable person starts (subject to subsection (3)) on the later of the following days: (a) the day after the day on which the decision was first made that the person’s total remuneration would be wholly or partly conditional on the achievement of objectives; (b) if the achievement of those objectives (as first decided) is to be measured by reference to a particular period—the day that period starts. (3) However, if: (a) the variable remuneration is remuneration of a kind determined under paragraph 26(3)(a), or prescribed by the Regulator rules for the purposes of paragraph 26(1)(b); and (b) the determination provides, or the Regulator rules provide, for when the minimum deferral period for the variable remuneration starts; then the minimum deferral period starts on the day so provided. When the minimum deferral period ends (4) The minimum deferral period for the variable remuneration of an accountable person ends on the earliest day worked out under an applicable item of the following table.

<table cellspacing="0" cellpadding="0" style="margin-left:0.25pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:343.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>End of minimum deferral period</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span></span></p><p class="TableHeading"><span>Item</span></p></td><td style="width:95.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Column 1</span></p><p class="TableHeading"><span>If …</span></p></td><td style="width:201.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Column 2</span></p><p class="TableHeading"><span>the period ends on …</span></p></td></tr></thead><tbody><tr><td style="width:24.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:95.4pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>it is the last day of the period of 4 years after the start of the minimum deferral period</span></p></td><td style="width:201.6pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) that last day, unless paragraph</span><span> </span><span>(b) applies; or</span></p><p class="Tablea"><span>(b) if, on the day determined under paragraph</span><span> </span><span>(a), the accountable entity or significant related entity considers that the accountable person is likely to have failed to comply with one or more of their accountability obligations under section</span><span> </span><span>21—the later day on which the entity determines whether or not the person has failed to comply.</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:95.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the accountable person ceases to be an accountable person because of the person’s death, serious incapacity, serious disability or serious illness</span></p></td><td style="width:201.6pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) the day on which the person so ceases, unless paragraph</span><span> </span><span>(b) applies; or</span></p><p class="Tablea"><span>(b) if, on the day determined under paragraph</span><span> </span><span>(a), the accountable entity or significant related entity is not yet satisfied on reasonable grounds that the person has complied with the person’s accountability obligations under section</span><span> </span><span>21:</span></p><p class="Tablei"><span>(i) the day on which the entity is so satisfied (whether the compliance occurred on or before the entity being so satisfied); or</span></p><p class="Tablei"><span>(ii) if the day mentioned in subparagraph</span><span> </span><span>(i) does not occur—the day determined under item</span><span> </span><span>1.</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:95.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>a circumstance determined under subsection</span><span> </span><span>(5), or prescribed by the Regulator rules for the purposes of this item, exists or occurs in relation to the accountable person</span></p></td><td style="width:201.6pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) the day on which the circumstance occurs or begins to exist, unless paragraph</span><span> </span><span>(b) applies; or</span></p><p class="Tablea"><span>(b) if, on the day determined under paragraph</span><span> </span><span>(a), the accountable entity or significant related entity is not yet satisfied on reasonable grounds that the person has complied with the person’s accountability obligations under section</span><span> </span><span>21:</span></p><p class="Tablei"><span>(i) the day on which the entity is so satisfied (whether the compliance occurred on or before the entity being so satisfied); or</span></p><p class="Tablei"><span>(ii) if the day mentioned in subparagraph</span><span> </span><span>(i) does not occur—the day determined under item</span><span> </span><span>1.</span></p></td></tr></tbody></table>