Our People

The people of CSL are passionate about delivering on our promises – to patients, communities and our team members. We encourage the best and brightest to innovate and collaborate toward one shared mission: saving lives and protecting the health of people all around the world. We are dedicated to helping our employees achieve the promising futures they deserve, which is our new global employee brand. “Promising Futures” strengthens our efforts to attract and retain talented people who enable us to meet our ongoing business needs. Our people drive our superior performance and we are committed to supporting their career goals. We continue to focus on providing employees access to a range of professional development and career advancement opportunities.

Our work culture is attractive and engaging. In our employee feedback survey conducted in May 2017, we measured one point above IBM’s global benchmark for employee engagement. The results further revealed employee pride being a primary driver behind what motivates our people. People are proud to work for CSL. They enjoy working in a purpose-driven company with a values-based culture where they can perform meaningful work and grow their careers. As our people grow individually and professionally, the company grows with them – and patients get the best care and attention they need. It is why we made notable investments in human resources and leadership development, which will expand in the coming year.

We are proud of the external recognition that our talented people and innovative workplace receive. Recognition of note includes the prestigious 2017 Industry Innovator Award from the National Organization for Rare Disorders (NORD) and ranking on Igea’s list of Top 15 Biotech Companies in the world for 2016. We also received recognition for our culture of diversity and inclusion. Kankakee, in the US, was acknowledged by the US Department of Defense for going ‘above and beyond’ in employing members of the military. CSL Behring Marburg, Germany, received an award from the economy minister of the German State for “GreenZone” an employee wellbeing concept. CSL in Parkville, Australia, built our female-friendly workplace reputation by hosting a National Association of Women in Operations (NAWO) career event on International Women’s Day.

CSL continues to have gender, ethnic and generational diversity in our workforce. The composition of female employees at all leadership levels is meeting our expectations and aligned to global benchmarks. Further information regarding CSL’s diversity position can be found in the Corporate Governance Statement.

Executive Remuneration

Our 2016 Remuneration Report received an ‘against’ vote of 26% of the votes cast. This sent a clear signal that a number of shareholders were concerned about aspects of our senior executive pay design and, by implication, how we have been communicating with you about our remuneration governance. As a consequence, a major focus of the Board this year has been a comprehensive review of how we reward our most senior executives and the development of a new pay design that took effect from 1 July 2017.

Since the last AGM, members of the Board have met with a number of shareholders to better understand your concerns – including shareholders who voted ‘against’ and shareholders who voted ‘for’ the remuneration resolutions. Our Remuneration Report provides more detail around the clear messages we received and our responses to you. Your Board’s remuneration governance focus is significant and actively engaged on making sure that CSL has a system that both shareholders and executives will agree is helping to drive sustainable growth in our business over the longer term.

We believe that our pay design for senior executives needs to strongly support our global operations and internationally domiciled and sourced senior talent. In order to continue our sustained successful growth and performance we need to be able to attract and retain talent in a highly competitive global bio-pharmaceutical market. As an example, more than 17,000 CSL employees now live and work outside of Australia and approximately 90% of our global revenue is earned outside of Australia. Accordingly, we have sought to design an innovative and fit-for-purpose global framework that is competitive for our executives around the world and meets the expectations of our shareholders. We will also strive to provide you with a clear and transparent rationale for any future changes to our remuneration structure, adjustments to opportunity levels, and performance conditions.

Key principles of the new pay design include simplicity, transparency and strong and clear alignment with our shareholders. To achieve these principles, the Board has decided that future equity grants offered to our most senior executives will be in the form of Performance Share Units. The first such grant will be in October 2017. These grants will be made at face value and all will be performance hurdled.

In addition, we have discontinued the grant of options, performance rights or notional shares under our remuneration structure from 1 July 2017. Some of these legacy instruments will remain on foot until their term for vesting has expired over the next three years, but no such further grants will be made.

Full details of our remuneration review and how we have addressed the outcomes of last year’s vote are included in our Remuneration Report (found on page 61 in our Financial Report).

Our Thanks

Central to our success is the significant contribution and commitment of our employees to deliver on our promise to patients.

Your Board of Directors recognises and appreciates the hard work and strong commitment of dedicated management and staff in executing a values-based culture that underpins working each day as if someone’s life depends on it.