PART II - Case study - Effectiveness of Remuneration systems and Measures\ The following is an Excerpt from article in the Australian Financial Review 20 September 2018 describing new changes amounced for NAB Limited Remuncration Methods by Chairman Dr Ken Henry:\ Dr Heny sald the new single bonus system would consinue to use refum an equity (ROE) as part of financial metrics that would also inctude meobing cash eamings targets and the capital plan. The scorecerd for dederminthg bonuses would also be based on assessing varfous risk metrics, cusfomer objectives inchuding nef promoler scores and produci simplification, and strategie objectives, inclutfing milesiones on the business bansformation plan. There are also people objectives rolating to stalf engagement and dhersity.\ ... The recommendations of the Hayne royal commission ave expected to contain calis for banks to puif back on remunevalion incentives that dhive bankers fowards purely financial outcomes.'\ Required:\ NAB have acknowledged that using ONLY financial performance measures alone are insufticient to truly measure their expecutivn's pecfarmance. Disciss and analyre the following in relation to corporate remuneration and measures of performance:\ a) The PURPOSES of Remuneration Policles;\ b) The UMITATIONS of using ONLY Financial Measures of Performance; and\ c) The BENEFITS (Advantages) of including NON-FINANCLAL Performance Measures in a corporate Remuneration Policy.

PART II - Case study - Effectiveness of Remuneration systems and Measures The following is an Excerpt from article in the Australian Financial Review 20 September 2018 describing new changes announced for NAB Limited Remuneration Methods by Chairman Dr Ken Herry: Di Henry sald the new single bonus system would consinue to use refum an equily (ROE) as part of Financial metrics that wouid also inctude meoting cash eamings targets and the capital plan. The scorocerd for dedermining banuses would also be based on assessing various risk metrics, cusfomer objectrives inctuding net promoler scores and product simplification, and strategle objectives, inciutfing milesfones on the business transformation plan. There are also people objectives rolating to stalf engagement and diversity. ... The recommendations of the Hayrie royal commission ave expected to contain callis for banks to puir back on remunerafion incentives that drive bankers fowards purely financial outcomes. Required: NAB have acknowledged that using ONLY financial performance measures alone are insufficient to truly measure their pxecurtive's perfarmance. Disciss and analye the following in relation to corporate remuneration and measures of performance: a) The PURPOSES of Remuneration Policies; b) The UMITATIONS of using ONLY Financial Measures of Performance; and c) The BENEFITS (Advantages) of including NON-FINANCLAL Performance Measures in a corporate Remuneration Policy