02 Governance, Structure & People ABOUT THE EXECUTIVE TEAM

CEFC ANNUAL REPORT / 2014–15

ABOUT THE EXECUTIVE TEAM

CEO is supported by a leadership team of four Executives. The CEFC Executive is drawn from different industries and market segments, bringing the skills and private sector experience necessary for the CEFC to pursue its objectives. Executives are delegated responsibilities to administer their areas by the CEO.

Theodore Dow

Chief Investment Officer

Mr Dow has over 25 years of experience in treasury, finance and banking. A mezzanine and high yield debt specialist, during the course of his career Mr Dow has completed more than 60 transactions globally, with an aggregate enterprise value of approximately $30 billion.

Mr Dow has previously held positions with AMP Private Capital, Babcock & Brown and Westpac, and was most recently managing director of DIF Capital Partners, where he held line responsibility for managing approximately $600 million in investments in private debt, hybrid capital, equity-linked bonds and private equity.

In addition to serving on the board of DIF, Mr Dow has held a number of board and advisory board positions, including the PaperlinX SPS Trust, Strategic Capital Equities, Sports Tips Pty Ltd and the NSW Government Energy GAP Taskforce.

Mr Dow holds an Advanced MBA from the University of Queensland, a Masters in Financial Management from Manchester Business School (UK), a Post Graduate degree in Japanese from Kansai Gai Dai University (Japan) and a Magna Cum Laude Honors BA Degree in Economics from Boston University.

 

Kevin Holmes

Chief Governance and Strategy Officer

Mr Holmes is responsible for coordinating the development of CEFC strategy and overseeing risk management of CEFC investments and the Corporation itself. In his governance capacity, Mr Holmes also chairs the Executive Investment Committee and the Executive Risk Committee.

Mr Holmes was previously chief financial officer at EnergyAustralia (formerly TRUenergy), where he played a key role in the growth and transformation of the business into Australia’s second largest electricity retailer and largest privately-owned generator.

Prior to that, Mr Holmes was chief operating officer and chief financial officer of Pacific Hydro, where he helped establish a world leading renewable energy company through an aggressive global growth strategy, including major greenfield projects in Australia, Chile, Brazil, the Philippines and Fiji.

Mr Holmes also had a long international career with BHP Billiton, holding senior positions both in Australia and overseas, as well as with British Gas in the United Kingdom.

Mr Holmes is a Chartered Accountant, a Commerce Graduate of Otago University in New Zealand, a member of the Chartered Accountants Australia and New Zealand and a Graduate Member of the Australian Institute of Company Directors.

Meg McDonald

Chief Operating Officer

Ms McDonald has significant career experience in business, government and carbon policy. Ms McDonald had roles with Alcoa as President of Alcoa Foundation; director, Global Issues, Alcoa Inc. in New York and General Manager, Corporate Affairs for Alcoa in Australia. Before joining Alcoa, she was a senior Australian diplomat, including as Australia’s Deputy Ambassador to the United States and as Australia’s Ambassador for the Environment. In 1997-98, Ms McDonald was Australia’s lead negotiator for the Kyoto Protocol and played a key role in shaping those negotiations and other environment treaties.

As the CEO of Low Carbon Australia Limited, prior to its merger with the CEFC in 2013, Ms McDonald led the development of innovative financial solutions to Australian business, government and the wider community to encourage action on energy efficiency, cost-effective carbon reductions and carbon neutral accreditation. Low Carbon Australia financed energy efficiency projects and investment partnerships of more than $80 million, generating a flow of new financing of more than $270 million for energy efficiency and low emissions technologies in the marketplace.

Ms McDonald holds an Honours Degree in Applied Science from the University of NSW.

Andrew Powell

Chief Financial Officer and Corporate Secretary

Mr Powell has more than 25 years of business experience, working within industry and public accounting both in Australia and the United States. Mr Powell is experienced in all aspects of financial accounting, as well as mergers and acquisitions, public listings and transaction and deal structuring.

Mr Powell was previously the chief financial officer and company secretary of Low Carbon Australia Limited, a public company established by the Australian Government in 2010. In addition to having oversight of the finance, IT, HR and legal roles as CFO, Mr Powell worked with the deal teams on structuring and reviewing transactions. He also actively supported the CEO in providing strategic direction, articulating a compelling vision and building the company’s profile with the general public and business community.

Prior to that, Mr Powell was senior vice president of finance for Symyx Technologies, Inc. a NASDAQ-listed company, for a period of eight years in California. He also worked with Ernst & Young in both Australia and the United States for a combined period of nine years.

Mr Powell is a Chartered Accountant and holds a Bachelor of Economics from Macquarie University.

    Management Committees

    In addition to the Executive leadership group, the CEFC has three formal Management level committees that assist the Corporation in internal governance and the review and management of its investments. In summary these are:

    • The Executive Investment Committee – which screens new investments prior to presentation to the Board, and closes out transactions after Board investment approval

    • The Asset Management Committee – which has an oversight role for the ongoing management and performance of investments that have reached financial close

    • The Executive Risk Committee – which assists the Corporation in managing risk, compliance and governance issues, associated with the Corporation’s investments and the Corporation itself.

    Executive remuneration and allowances

    The Board’s Remuneration and Human Resources Committee is chartered with responsibility for the structuring of Executive remuneration, evaluation of performance and approving any variable compensation amounts.

    During the reporting period, Total Annual Remuneration Packages (TARPs) for the five CEFC Executives included the following components:

    • Base salary

    • Superannuation

    • Allowances

    • Variable compensation

    Variable compensation payments were made within the reporting period. Variable compensation payments for each 12-month period are determined within the guidelines established by the Remuneration and Human Resources Committee.


    Figure 27:
    The CEFC’s human resourcing structure as at 30 June 2015

    Category

    Level

    Number

    Statutory Officers (8)

    Chair

    1 (part time)

    Board Members

    6 (part time)

    Chief Executive Officer

    1 (FTE)

    Staff (56 FTE)

    Executive-Level

    4 (FTE)

    Non-Executive Level

    51 (FTE)

    Consultants

    1 (FTE)

     

    The method for calculation is based on both short-term and longer-term metrics agreed by the Board and includes financial, operational and personal targets.

    Eligibility to receive a variable compensation payment is determined after an individual performance assessment, which takes into account the CEFC’s broader achievement of goals.

    More information on payments made to Senior Executives in the reporting period is available in the Financial Statements at Note 1.8 and Note 13.

    Most CEFC Executive travel and expenses claims are usually dealt with on an indemnity and reimbursement basis (see indemnities and insurance premiums for officials).