What does key management personnel remuneration mean?

Remuneration is something given by a charity in exchange for services rendered to the charity.

Remuneration can include:

• Wages, salaries and employer superannuation contributions, paid annual leave and paid sick leave and bonuses.
• Non-monetary or fringe benefits such as educational opportunities, housing, cars and free or subsidised goods or services.
• Post-employment benefits such as pensions, other retirement benefits, post-employment life insurance and post-employment medical care.
• Long-service leave or sabbatical leave, jubilee or other long-service benefits, long-term disability benefits.
• Termination benefits.

Key management personnel are the senior decision makers in a charity and do not include team leaders or operational managers.

Examples of key management personnel are:

• Responsible People (For example, board, committee members, trustees).
• Senior staff (For example, the CEO, Chief Financial Officer, Chief Operating Officer).

Key management personnel may be employed by a charity. Or they may be provided to a charity by a separate management entity. An example of provision by a separate management entity is an accounting firm that provides a charity with a chief financial officer or company secretary in return for a fee.

A separate management entity may also provide other services, such as bookkeeping or IT support to a charity. If they are covered by a single fee, the charity can use a reasonable method to calculate the cost of the key management personnel (or simply disclose the total fee if that is not practicable).

So, key management personnel remuneration is the remuneration given to the senior decision makers in a charity.