IGO Interactive Annual Report 2020

DIRECTORS’ REPORT— REMUNERATION REPORT 30 JUNE 2020 DIRECTORS’ REPORT— REMUNERATION REPORT 30 JUNE 2020 ADDITIONAL STATUTORY INFORMATION (II) Performance based remuneration granted and forfeited during the year The table below shows for each KMP how much of their STI cash bonus and LTI service rights were awarded and how much was forfeited. It also shows the value of performance rights that were granted, vested and forfeited during FY20. The number of performance rights and percentages vested/forfeited for each grant are disclosed in the table on page 68. Name STI bonus (cash) LTI (service rights) LTI (performance rights) Total opportunity $ Awarded 1 $ Awarded % Forfeited % Total opportunity $ Awarded 2 $ Awarded % Forfeited % Value granted 3 $ Value vested 4 $ Value forfeited 4 $ Peter Bradford 435,000 317,500 73 27 435,000 317,500 73 27 724,253 - 298,732 Keith Ashby 92,500 65,000 70 30 92,500 65,000 70 30 160,721 - 38,339 Kate Barker 87,500 64,500 74 26 87,500 64,500 74 26 152,034 - 23,379 Matt Dusci 252,000 186,500 74 26 252,000 186,500 74 26 389,209 - 92,466 Andrew Eddowes 95,000 69,500 73 27 95,000 69,500 73 27 165,067 - 36,084 Joanne McDonald 87,500 63,500 73 27 87,500 63,500 73 27 152,034 - 31,574 Sam Retallack 92,500 68,500 74 26 92,500 68,500 74 26 160,721 - 38,339 Ian Sandl 100,000 69,000 69 31 100,000 69,000 69 31 173,754 - - Scott Steinkrug 115,000 85,000 74 26 115,000 85,000 74 26 319,708 - 92,466 1. To be paid in August 2020. 2. Service rights will be issued in September 2020 based on the 5 day VWAP following the release of IGO’s 2020 Financial Statements. The service rights will vest in equal parts in September 2021 and September 2022. 3. The value at grant date for performance rights granted during the year as part of remuneration is calculated in accordance with AASB 2 Share-based Payment . Refer to note 26 for details of the valuation techniques used for the EIP. 4. The value of performance rights vested and forfeited is based on the value of the performance rights at grant date. (III) Terms and conditions of the share-based payment arrangements Performance rights under the Company’s EIP Performance rights under the Company’s EIP are granted annually. The performance rights vest after three years from the start of the financial year, subject to meeting certain performance conditions. On vesting, each performance right automatically converts into one ordinary share. The Executives do not receive any dividends and are not entitled to vote in relation to the performance rights during the vesting period. If an Executive ceases employment before the performance rights vest, the performance rights will be forfeited, except in certain circumstances that are approved by the Board. The value at grant date for performance rights granted during the year as part of remuneration is calculated in accordance with AASB 2 Share-based Payment . Refer to note 26 for details of the valuation techniques used for the EIP. Grant date Vesting date Grant date value $ Performance achieved Vested % 20 November 2019 1 July 2022 4.45 To be determined n/a 14 October 2019 1 July 2022 4.65 To be determined n/a 20 November 2018 1 July 2021 2.17 To be determined n/a 28 September 2018 1 July 2021 2.81 To be determined n/a 24 November 2017 1 July 2020 3.14 To be determined 2 n/a 29 September 2017 1 July 2020 2.29 To be determined 2 n/a 22 May 2017 1 July 2019 2.30 Less than 50th percentile 1 0 24 November 2016 1 July 2019 2.26 Less than 50th percentile 1 0 18 November 2016 1 July 2019 2.21 Less than 50th percentile 1 0 1. The Company achieved relative TSR performance for the FY17 Series Performance Rights for the three year period 1 July 2016 to 30 June 2019 of 44.8%. This was below the 50th percentile of the comparator group and resulted in all FY17 Series Performance Rights lapsing and cancelled. 2. The relative and absolute TSR performance conditions of the share rights granted in FY18 (which were due to vest on 1 July 2020) were tested post 30 June 2020. The Company achieved a TSR of 56.0% for the period 1 July 2017 to 30 June 2020, resulting in the vesting of 72.6% of performance rights subject to relative TSR testing and 97.9% of performance rights subject to absolute TSR testing (with 50% allocation to both relative and absolute TSR). This resulted in an overall vesting of 85.2% of the FY18 Series Performance Rights, with the balance of the performance rights lapsing and subsequently cancelled. This will be accounted for in the FY21 Remuneration Report. The following table shows details of the remuneration expense recognised for the Group’s KMP for the current and previous financial year measured in accordance with the requirements of the Accounting Standards. Name Year Cash salary and fees 1 Cash bonus 2 Super- annuation Long service leave 3 Share rights 4 Total Performance Related $ $ $ $ $ $ % Executive Directors Peter Bradford 2020 856,309 317,500 25,000 37,619 895,207 2,131,635 57 2019 786,877 241,000 25,000 23,795 707,930 1,784,602 53 Other Key Management Personnel Keith Ashby 2020 354,117 65,000 25,000 11,302 180,150 635,569 39 2019 343,623 51,500 25,000 9,048 132,244 561,415 33 Kate Barker 2020 328,493 64,500 25,000 9,673 141,763 569,429 36 2019 316,689 49,000 25,000 18,039 89,757 498,485 28 Matt Dusci 2020 617,429 186,500 25,000 28,183 413,922 1,271,034 47 2019 516,497 108,500 25,000 15,549 297,588 963,134 42 Andrew Eddowes 2020 351,893 69,500 25,000 11,949 159,658 618,000 37 2019 361,167 53,000 25,000 (18,797) 113,021 533,391 31 Joanne McDonald 2020 320,401 63,500 25,000 9,280 142,239 560,420 37 2019 317,100 49,000 25,000 9,387 93,416 493,903 29 Sam Retallack 2020 350,609 68,500 25,000 10,399 179,887 634,395 39 2019 337,833 51,500 25,000 14,764 131,803 560,900 33 Ian Sandl 2020 367,261 69,000 25,000 7,061 157,382 625,704 36 2019 348,786 53,000 25,000 3,664 77,428 507,878 26 Scott Steinkrug 2020 451,409 85,000 25,000 12,984 344,649 919,042 47 2019 427,409 92,500 25,000 10,617 258,739 814,265 43 Total executive directors and other KMPs 2020 3,997,921 989,000 225,000 138,450 2,614,857 7,965,228 2019 3,755,981 749,000 225,000 86,066 1,901,926 6,717,973 Total NED remuneration (see page 62) 2020 864,248 - 80,561 - - 944,809 2019 808,220 - 76,780 - - 885,000 Total KMP remuneration 2020 4,862,169 989,000 305,561 138,450 2,614,857 8,910,037 2019 4,564,201 749,000 301,780 86,066 1,901,926 7,602,973 1. Cash salary and fees includes movements in annual leave provision during the year. 2. Cash bonus represents bonuses that were awarded to each KMP in relation to FY20 performance and will be paid in August 2020 (2019: Related to FY19 and paid in August 2019). 3. Long service leave relates to movements in long service leave provision during the year. 4. Rights to shares granted under the EIP are expensed over the performance period, which includes the vesting period of the rights, in accordance with AASB 2 Share-based Payment . Refer to note 26 for details of the valuation techniques used for the EIP. 66 — IGO ANNUAL REPORT 2020 IGO ANNUAL REPORT 2020— 67