G. EXECUTIVE EMPLOYMENT AGREEMENTS
All employment agreements for the Group CEO and the Executive team are for unlimited terms but may be terminated by written notice
from either party or by IAG making a payment in lieu of notice. The employment agreements outline the components of remuneration
paid to each Executive and require annual review of Executives’ remuneration, although the agreements do not require IAG to increase
base salary, pay STI or offer an LTI in any given year.
TABLE 12 - EXECUTIVE EMPLOYMENT AGREEMENTS
NAME
NOTICE PERIOD FROM
THE RELEVANT COMPANY
NOTICE PERIOD FROM
THE EMPLOYEE
TERMINATION PROVISIONS
Michael Wilkins
12 months
6 months
12 months fixed remuneration and STI that
would have accrued for 12 months had
termination not occurred. An additional six
months fixed remuneration is payable if IAG
invokes a restraint clause.
Duncan Brain
12 months
6 months
12 months base salary
Andy Cornish
12 months
3 months
12 months fixed remuneration
Peter Harmer
12 months
6 months
12 months base salary
Alex Harrison
12 months
6 months
12 months base salary
Nicholas Hawkins
12 months
3 months
12 months base salary
Jacki Johnson
12 months
3 months
12 months fixed remuneration
Leona Murphy
12 months
3 months
12 months base salary
Clayton Whipp
12 months
6 months
12 months base salary
Subject to the relevant legislation in the various jurisdictions, termination provisions may include the payment of annual leave and/or
long service leave for the Executives.
Executives are employed by Insurance Australia Group Services Pty Limited, except for Jacki Johnson who is employed by IAG New
Zealand Limited.
I. Retrenchment
In the event of retrenchment, the Executives listed above (except for Jacki Johnson) are entitled to the greater of:
the written notice or payment in lieu of notice as provided in their employment agreement; or
the retrenchment benefits due under the Company retrenchment policy.
For Executives based in Australia, the minimum benefit under the retrenchment policy is 11 weeks of base salary and the maximum
benefit that can be received is 87 weeks of base salary. The maximum benefit is payable to employees with service of 25 years or
more.
For Jacki Johnson, the retrenchment payment is in accordance with the termination provisions specified in the table above.
II. Termination of employment without notice and without payment in lieu of notice
The employment of an Executive may be terminated without notice and without payment in lieu of notice in some circumstances.
Generally, this could occur where the Executive:
is charged with a criminal offence that is capable of bringing the organisation into disrepute;
is declared bankrupt;
breaches a provision of their employment agreement;
is guilty of serious and wilful misconduct; or
unreasonably fails to comply with any material and lawful direction given by the relevant company.
III. Termination of employment with notice or payment in lieu of notice
The employment of an Executive may be terminated at any time by the relevant company with notice or payment in lieu of notice. The
amount of notice the relevant company must provide or the payment in lieu of notice is specified above.
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