Notional base salary

The non-variable, fixed cash to which an employee is contractually entitled to (typically annually) for performing their core operational duties, excluding mandated superannuation, allowances, equity grants and incentives. Some companies vary the operational definition to better administer muti-country mobility and comparison.

Now applies to approximately 70% of the ASX 200 executive remuneration frameworks.

Now mandated for Australian prudentially regulated companies by APRA under CPS 511 (for SFIs). Few companies outside of APRA regulated companies have it as a policy given the difficulty, probability, expense, and distraction of legal recovery efforts.