Our people
REMUNERATION
Woolworths prides itself on market competitive benefits and remuneration. In the case of operational roles the entry-level rate of pay is at or in excess of the state award. Our remuneration structure includes two components - fixed remuneration (base salary plus superannuation) and a variable, performance-based component. The cash-based short-term incentive plan (STIP) is made available to all managerial salaried employees. The long-term incentive plan (LTIP) is offered to managers who play a critical role in the long-term success of our business, including executives, store managers and buyers in supermarkets and BIG W.
A range of incentive programs are designed to support attraction, retention and a culture of performance. Part-time employees have access to the same benefits as their full-time counterparts on a pro-rata basis. Benefits here include a staff discount card, access to the Woolworths Employee Credit Union and discounted private health insurance.
Share purchase plan
The Woolworths Share Purchase Plan plays an important role in encouraging employees to build an ownership stake in the business. Under the plan an annual invitation allows participating employees to acquire Woolworths shares using pre-tax rather than after-tax income. Participation is entirely voluntary. Under the FY08/09 plan 16,923 employees participated. Woolworths now has approximately 40,000 employee shareholders.
Superannuation
Woolworths Limited makes superannuation contributions for employees of the company andits controlled entities to company sponsored superannuation funds at rates set out in trust deeds, rules governing these funds and in accordance with legislative requirements.
Extracts from the company's 2009 Annual Report covering the Woolworths Group Superannuation Plan's (WGSP) financial position are shown in the table below. More details are available in Notes to the Financial Statements (Note 23) in the 2009 Annual Report.
While the WGSP's defined benefit obligation exceeds its assets at 30 June 2009, the company makes contributions in line with actuarial recommendations so members' benefits when payable are fully covered by the WGSP's assets.
| Liability for defined benefit obligation | ||
|---|---|---|
| As at June 09 $m | As at June 08 $m | |
| Defined benefit obligation(1) Fair value of assets Liability for defined benefit obligations |
(1,536) 1,444 (92) |
(1,609) 1,556 (53) |
(1) Includes contribution tax.