Performance Evaluation - Overview

BlueScope Steel has a range of processes in place relating to performance evaluation of the Board, the Board Committees, individual directors and executives.

Board and director evaluation

The process of evaluating the performance of the Board as a whole is the responsibility of the Board under the direction of the Chairman. The evaluation of Board performance involves:

at the start of a period, the Board discussing the objectives to be achieved;
at the end of the relevant period, the Board assessing the extent to which objectives were achieved by the Board.

Assessment of individual directors' performance is a process determined by the Chairman, and draws on a range of techniques, including:

surveys of Board and individual directors concerning their perceptions about the Board and director performance;
one-on-one interviews with directors with the Chairman; and
use of external advisers to assist with the overall evaluation process.

Board Committees

The Charter of each Board Committee requires the Committee to annually review its performance and, where necessary, make recommendations to the Board for improving the effectiveness of the Committee.
The manner of the evaluation is generally to be determined by the relevant Committee Chairman, and will vary given:

the particular responsibilities of each Committee;
the number of Committee meetings; and
the number of Committee members.

Executives

All BlueScope Steel executives are subject to annual performance planning and review.

The annual performance planning and review involves an executive being evaluated by their immediate superior. The executive is assessed against:

completion of key job specifications and goals; and
contribution towards specific business plan objectives.

The outcomes of performance reviews are reported to the Remuneration Committee, which has overall responsibility for ensuring that performance management processes are in place for all executives (excluding the Managing Director and Chief Executive Officer – who is assessed by the Board). Executive remuneration is considered by the Remuneration Committee.

The Remuneration Committee also considers the overall amount of any short term incentive to be provided to eligible executives, and determines the specific amount of any short term incentive bonus awarded to particular executives. This takes into account the overall performance of the Company against a range of measures, and the contribution made by a particular executive.

The performance evaluation of the Managing Director and Chief Executive Officer is facilitated by the Chairman, with ultimate oversight by the Board. The evaluation of the Managing Director and Chief Executive Officer involves an assessment of a range of factors including the overall performance of the Company and the achievement of specific pre-determined goals.

Performance Evaluation - Overview

Board and director evaluation

Board Committees

Executives

Responsibilities