Designing executive incentives that support safe and healthy work can be tricky. When there is an unavoidable tension between the strategic goals, processes or activities (e.g. production targets and health and safety targets), management needs to clearly identify and actively reinforce their highest priority. So how do you ensure that the priority is health and safety, where there’s a conflict with production / profit? Here are three factors for your consideration when designing executive incentives.
Today we look at how the requirement to draft accountability maps and statements and the deferral of executive variable remuneration under the Banking Executive Accountability Regime can be applied to WHS governance – accountability maps can be a foundation piece in your WHS governance framework and help officers understand who does what; and while the BEAR requires the deferral of executive remuneration, it means very little if WHS is not included in the assessment of overall business performance.