Common use of Performance Agreements - Performance / Bonus Review Clause in Contracts

Performance Agreements - Performance / Bonus Review. 6.1 The employees in positions covered by this Agreement will be entitled to receive an agreed minimum remuneration in recognition of services for EnergyAustralia at an agreed standard. Further, those employees shall be entitled to receive additional remuneration for performance determined by reference to key result targets. 6.2 Each year, employees under this Agreement will be required to enter into a Performance Agreement with their Manager. This Performance Agreement will establish the key result areas/targets that the employees will be measured against as part of their annual performance review. 6.3 Each position covered by this Agreement will be the subject of a specific, individual job description to which the key areas/targets will relate. 6.4 The formal performance review will be held in July/August of each year and will be linked to the performance management system of EnergyAustralia. 6.5 The employee’s performance for the year will be assessed against the achievement of these agreed key result areas/targets. Each Performance Agreement will specify the level of achievement/performance and dependent on the employee’s performance may result in the payment of additional performance based remuneration to the employee. The performance-based remuneration will be determined by weighting based on company, divisional and individual performance criteria. Those performance targets will be agreed between the employee and the manager at the time of setting the employee’s performance key result areas/targets. 6.6 Each Performance Agreement will provide access to the performance-based remuneration where the employee exceeds nominated performance targets. 6.7 The maximum remuneration for any year will be determined according to the employee’s performance based remuneration. The amount paid will depend on the employee’s performance against established targets and key result areas as agreed between the employee and their manager. 6.8 The maximum performance based bonus achievable is set at 10% of base salary. 6.9 Completed agreements must be submitted for registration with the senior manager and Remuneration and Benefits Administrator at the beginning of each bonus assessment year; being 1 July - 30 June. 6.10 Employees may elect to have their bonus payments deferred up to a maximum of twelve (12) months.