3.5 Variable remuneration – Short Term Incentive (STI) Plan
The highly capital intensive nature of NEXTDC requires infrastructure to be built prior to generating income derived from
customer utilisation. With NEXTDC operating in a high-growth industry, the Company needs to continually expand its
infrastructure to meet customer demand. It is on this basis that the Board and Committee places emphasis on committed sales,
facilities expansion, margin, and EBITDA growth in incentivising Senior Executives.
FINANCIAL YEAR 2020 STI PLAN
The purpose of the STI Plan is to provide an incentive for Senior Executives to achieve against the Company’s strategic
objectives by delivering or exceeding annual business plan requirements for sustainable superior returns for shareholders.
Key terms of the FY20 STI Plan are detailed below.
Opportunity Threshold award of 25% of Base Salary Package and a stretch (maximum) award of 75%
of Base Salary Package.
Measurement period The Company’s financial year i.e. from 1 July 2019 to 30 June 2020.
Performance metrics The below Company Key Performance Indicators (KPIs) were selected as being the most
relevant drivers for improving financial performance and growth in shareholder value and
are also common measures amongst NEXTDC’s global competitors.
Metric Weighting Reason for selection
Group EBITDA 1/3 Indicates the Company’s underlying
profitability best suited to its stage of
New retail NMRR*
1/3 New NMRR committed is connected to the
level of incremental new business signed
with NEXTDC’s two key customer
segments – retail and wholesale New wholesale NMRR
No STI can be paid if the EBITDA gateway is not achieved. The FY20 EBITDA gateway was
set at 95% of budget. In addition, no STI will be awarded to any individual in breach of the
Company’s code of conduct.
Delivery of STI Payments will be in cash unless otherwise determined by the Board and will normally be
paid in September following the Measurement Period subject to the deferral of 50% of the
final STI payment, which may be delivered in cash or by grant of rights to acquire fully paid
Deferring 50% of the awarded STI for a period of 12 months is intended to promote
sustainability of annual performance over the medium term, acts as a retention mechanism
and facilitates the exercise of clawback provisions should the Board determine to exercise
Board discretion If the Company’s overall performance during the Measurement Period is substantially lower
than expectations and has resulted in a significant loss to shareho
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.Read more
The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more