31 2022 ANNUAL REPORT DIRECTORS’ Report (cont.) 12. REMUNERATION REPORT (AUDITED) (cont.) 12.3 PRINCIPLES OF REMUNERATION Four principles guide Red 5’s remuneration policies and practices: Note NEDs do not receive remuneration related to performance or participate in any incentive plans. 12.4 EXECUTIVE REMUNERATION FRAMEWORK AND COMPONENTS Executives receive fixed remuneration and variable remuneration consisting of short and long term incentive opportunities. Executive remuneration levels are reviewed annually by the Remuneration Committee with reference to the remuneration guiding principles and market movements. The following diagram presents a high-level summary of remuneration components for executive KMP for FY22. Fixed remuneration Base salary + superannuation + benefits Variable remuneration One- off incentive STI Plan LTI Plan Project Incentive Opportunity (PIO) Cash Service Rights (1 year) Deferred Rights (1 year) Rights (3 years) Performance Rights (2 years) 50% financial performance 50% non-financial performance 70% relative TSR 30% growth in reserves 50% gold production 25% ore processed 25% development metres In addition, various minimum gateways are in place that need to be achieved in order to be awarded the variable remuneration component. The following diagram sets out the mix for fixed and “at risk” remuneration for executive KMP at maximum opportunity level for FY22 based on the potential of a 100% vesting of STI and LTI. Note given the one-off nature of the PIO it is excluded from the remuneration mix analysis. 2022 Remuneration Mix (at Maximum Opportunity) Managing Director Other KMP’s Total at risk 58% 40% 42% 60% 26% 27% 32% 13% 100% 50% 0% Fixed STI (at risk) LTI (at risk) Remuneration quantum should target the middle to upper quartile of the market that Red 5 operates in to attract and retain the key talent required. At-risk reward should be based on the achievement of challenging targets over the short term (1 year) and long term (3 years +). Emphasis of reward programs should be to motivate and retain key talent over the long term. An appropriate mix of cash and equity awards so that over time executives and employees are aligned with the long-term interests of shareholders.
RkJQdWJsaXNoZXIy MjE2NDg3