Section 2 Remuneration at IGO Remuneration Governance Overview The Board recognises that the continued success of the business depends upon the quality of its people. To ensure the Company continues to innovate and grow, it must attract, motivate, develop and retain highly skilled Directors, Executive KMP and employees. To ensure continued consistency of talent across the business the Company has an active Committee to ensure that people, performance and culture are a priority. The Committee, chaired by Debra Bakker, held four meetings during FY22. Messrs Buck and Nossal are also Committee members. The Managing Director and CEO was invited to attend all meetings which considered the remuneration strategy of the Group and recommendations in relation to Executive KMP. The structure of the relationship between the Board, Committee and remuneration principles is explained in the following table: Board The Board delegates responsibility in relation to remuneration to the Committee which operates in accordance with the Company’s People, Performance & Culture Committee Charter and the requirements of the Corporations Act 2001 and its regulations. People, Performance &Culture Committee IGORemuneration Principles The Committee is made up entirely of independent Nonexecutive Directors. The Committee is charged with assisting the Board by reviewing, on an annual basis, and making appropriate recommendations on the following: • the Company’s remuneration framework and policy, to ensure that it remains aligned to business needs and meets the Company’s remuneration principles • non-executive Director, CEO and Executive KMP remuneration • equity-based remuneration plans for Executive KMP and other employees • organisational development and culture, including IGO’s workplace diversity and inclusion strategy, policy, practices and performance • CEO, Executive KMP and other key members of management recruitment, selection, performance management and retention • superannuation arrangements for the organisation; and • remuneration equity for all employees across the Group. Remuneration policy is transparent with information communicated to all employees to create a high level of understanding of the link between pay, performance, culture, behaviours and delivery against Company objectives and values. At risk components are designed to motivate and incentivise for high performance and are aligned with the Company’s strategic and business objectives to create short and long-term shareholder value. Learning and development is a quantifiable and essential component of all roles. Career and succession planning is a valued component of the total reward philosophy and forms part of all development plans. Health and wellbeing programs aim to provide balance and additional value for people at all levels of the organisation. Equity in the business is important for all employees and prioritised when setting and reviewing remuneration policy and practice. External Advice and Benchmarking The Committee undertakes a broad review of data derived from remuneration consultants who track industry levels to ensure it is fully informed when making remuneration decisions. During the year ended 30 June 2022, no remuneration recommendations, as defined by the Corporations Act 2001 , were provided by remuneration consultants. However, the Committee did utilise general benchmarking data provided by PwC ($75,480), Aon Australia ($7,500), and Mercer Consulting ($6,825) in forming their views on remuneration matters and benefits across the organisation. Further information on the Committee’s role, responsibilities and membership can be found under the Governance section on the Company’s website at www.igo.com.au. Section 3 Executive KMP Remuneration in FY22 Components of Executive KMP Remuneration at IGO Executive KMP remuneration at IGO is comprised of an integrated package of fixed and at risk components, the purpose of which is to align Executive KMP reward with shareholder outcomes, Executive KMP performance and the retention of key talent. Total fixed and at-risk remuneration is benchmarked at least annually by the Committee. The table below provides an overview of the different remuneration components within the IGO framework. Objective Attract and retain the best talent Performance-related remuneration (at risk) Reward current year performance Reward long-term sustainable performance Remuneration Component Total Fixed Remuneration (TFR) – includes base salary and superannuation Short-Term Incentive (STI) – paid as cash and the issue of service rights Long-Term Incentive (LTI) – provided through the issue of performance rights Purpose TFR provides competitive ‘guaranteed’ remuneration with reference to: • size and complexity of the role • individual responsibilities and performance; and • experience and skills. The STI ensures appropriate differentiation of pay for performance, for achievement of a combination of Company and Individual KPIs to drive achievement of near-term strategic objectives and retention of Executive KMP. The LTI is focused on the achievement of stable longterm shareholder returns through the Company’s longterm strategic objectives and retention of Executive KMP. Total Realised Earnings for Executive KMP in FY22 The table below provides details of the actual remuneration earned during FY22 for Executive KMP. Amounts include: • total fixed remuneration received • the cash component of the STI earned as a result of business and individual performance for FY22 • ordinary shares received as a result of service rights that vested during the year; and • ordinary shares received as a result of performance rights that vested during the year. Peter Bradford Kate Barker Matt Dusci Andrew Eddowes Joanne McDonald Sam Retallack Scott Steinkrug TFR STI Cash Service Rights vested Performance Rights vested $1,000,000 $530,000 $541,800 $1,690,907 $118,000 $110,095 $334,250 $450,000 $297,000 $291,094 $852,601 $700,000 $105,000 $118,799 $365,703 $400,000 $105,000 $109,009 $334,250 $400,000 $105,000 $116,490 $353,908 $400,000 $139,000 $168,036 $643,470 $525,000 IGO ANNUAL REPORT 2022— 63 62 —IGO ANNUAL REPORT 2022
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