icare board removes executive performance incentives

14 November 2022

The icare board says performance incentives will be removed from executive remuneration reward arrangements following a comprehensive review to ensure its framework is “fair competitive and transparent”.

“Taking into consideration the reset of the icare strategy, recent public reviews and stakeholder feedback, the board has decided to remove performance incentives from all reward arrangements at icare,” Chairman John Robertson said.

“This is the right thing to do as we continue to deliver on our commitment to building the open and accountable culture expected of a public sector agency.”

Mr Robertson says fixed pay for employees impacted by this change will be adjusted to ensure remuneration remains fair and appropriate, with the total reward set with close reference to external market benchmarks.

“icare is one of the largest and most complex insurance businesses in Australia,” he said. “To operate effectively and attract talented employees, we must compete against businesses including insurance, financial and professional services.”

An independent review into icare released by Robert McDougall last year recommended that the board “give careful consideration to the design of remuneration and incentive structures to ensure that they are aligned to achieving the statutory objectives of the schemes that icare manages”.