IGO Interactive Annual Report 2020

DIRECTORS’ REPORT— REMUNERATION REPORT 30 JUNE 2020 DIRECTORS’ REPORT— REMUNERATION REPORT 30 JUNE 2020 SECTION 6. STATUTORY REMUNERATION DISCLOSURES EXECUTIVE CONTRACTS Remuneration and other terms of employment for Executives are formalised in service agreements. The service agreements specify the components of remuneration, benefits and notice periods. Participation in the STI and LTI plans is subject to the Board’s discretion. Other major provisions of the agreements relating to remuneration are set out below. Name Position Term of Agreement Base Salary including Superannuation at 1 July 2020 Notice Period Termination Benefit Peter Bradford Managing Director & CEO No fixed term 870,000 6 months 6 months 1 Keith Ashby Head of SHEQ & Risk No fixed term 370,000 3 months 6 months Kate Barker General Counsel No fixed term 350,000 3 months 6 months Matt Dusci Chief Operating Officer No fixed term 630,000 3 months 6 months Andrew Eddowes Head of Corporate Development No fixed term 380,000 3 months 6 months Joanne McDonald Company Secretary and Head of Corporate Affairs No fixed term 350,000 3 months 6 months Sam Retallack Head of People & Culture No fixed term 370,000 3 months 6 months Ian Sandl General Manager - Exploration No fixed term 400,000 3 months 6 months Scott Steinkrug Chief Financial Officer No fixed term 460,000 3 months 6 months 1. In addition to the above, Mr Bradford is entitled to a maximum termination benefit payable of up to 12 months of average annual base salary should the Company terminate the employment contract without cause, but only if such payment would not breach ASX Listing Rules. A termination benefit of three month’s remuneration is payable to Mr Bradford should the Company terminate the employment contract due to illness, injury or incapacity. (I) Remuneration expenses for Executive KMP The following table shows the value of earnings realised by executive KMP during FY20. The value of earnings realised includes cash salary, superannuation and cash bonuses earned during the year, plus the intrinsic value of service rights and performance rights vested during the financial year. This is in addition and different to the disclosures required by the Corporations Act and Accounting Standards, particularly in relation to share rights. As a general principle, the Accounting Standards require a value to be placed on share rights based on probabilistic calculations at the time of grant, which may be reflected in the Remuneration Report even if ultimately the share rights do not vest because performance or service hurdles are not met. By contrast, this table discloses the intrinsic value of share rights, which represents only those share rights which actually vest and result in shares issued to a KMP. The intrinsic value is the Company’s closing share price on the date of vesting. Remuneration received during the period Name TFR $ Value 1 STI Cash Component $ Value 2 Vested Service Rights Component $ Value Vested Performance Rights Component $ Value 3 Total Actual Remuneration $ Value Peter Bradford 870,000 317,500 279,264 - 1,466,764 Keith Ashby 370,000 65,000 59,472 - 494,472 Kate Barker 350,000 64,500 51,474 - 465,974 Matt Dusci 608,949 186,500 116,232 - 911,681 Andrew Eddowes 380,000 69,500 71,658 - 521,158 Joanne McDonald 348,750 4 63,500 51,594 - 463,844 Sam Retallack 370,000 68,500 58,944 - 497,444 Ian Sandl 385,577 4 69,000 24,816 - 479,393 Scott Steinkrug 460,000 85,000 106,596 - 651,596 1. Includes base salary and superannuation. 2. Represents the amounts to be paid in August 2020 for performance in FY20. 3. The Company achieved relative TSR performance of below the 50th percentile for the FY17 Series Performance Rights, resulting in the cancellation of the performance rights. 4. Ms McDonald and Mr Sandl took unpaid leave during the year. The following table reflects remuneration changes available to Executives for FY21, effective 1 July 2020: Name Position Total Remuneration FY21 Total Remuneration FY20 TFR $ STI % LTI % TFR $ STI % LTI % Peter Bradford Managing Director & CEO 870,000 50 150 870,000 50 150 Keith Ashby Head of SHEQ & Risk 370,000 25 75 370,000 25 75 Kate Barker General Counsel 350,000 25 75 350,000 25 75 Matt Dusci 1 Chief Operating Officer 630,000 40 120 630,000 40 120 Andrew Eddowes Head of Corporate Development 380,000 25 75 380,000 25 75 Joanne McDonald Company Secretary and Head of Corporate Affairs 350,000 25 75 350,000 25 75 Sam Retallack Head of People & Culture 370,000 25 75 370,000 25 75 Ian Sandl General Manager - Exploration 400,000 25 75 400,000 25 75 Scott Steinkrug Chief Financial Officer 460,000 25 105 460,000 25 105 1. The Board approved an increase in Mr Dusci’s TFR from $560,000 to $630,000 effective 21 October 2019 due to an expansion of his role. COMPANY PERFORMANCE A key and continued focus for the Board and Company is to align Executive remuneration to the achievement of strategic and business objectives of the Group and the creation of shareholder value. The table below illustrates a summary of the Group’s financial performance over the last five years as required by the Corporations Act 2001 . 2020 2019 2018 2017 2016 Revenue ($ millions) 888.9 784.5 777.9 421.9 413.2 Profit (loss) for the year attributable to owners ($ millions) 155.1 76.1 52.7 17.0 (58.8) Dividend payments (cents per share) 14.0 4.0 2.0 3.0 2.5 Share price at year end ($ per share) 4.87 4.72 5.14 3.15 3.28 64 — IGO ANNUAL REPORT 2020 IGO ANNUAL REPORT 2020— 65