Page 44 - Sundance Resources 2014 Annual Report

42 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014
Performance based remuneration is initially determined by assessing performance against the achievement
of predetermined KPIs and challenging objectives. The outcomes of the formula calculation are capped as a
percentage of the relevant employee’s base remuneration, dependant on level of seniority and direct influence on
the Company’s performance, and are reviewed by the Board to guard against anomalous or inequitable outcomes.
Use of Remuneration Consultants
Where necessary and appropriate, the NRC seeks and considers advice from independent remuneration
consultants. Remuneration consultants are engaged by and report directly to the NRC.
During the reporting period the NRC engaged the services of Godfrey Remuneration Group Pty Limited to
provide market benchmarking information, advice, and recommendations on remuneration for Non-Executive
Directors and the MD/CEO roles. The total fees payable to Godfrey Remuneration Group Pty Limited were
$19,000 ex GST. The information was provided in accordance with Section 206M of the Corporations Act 2001,
and the NRC has received a declaration from Godfrey Remuneration Group confirming such.
12.4 Relationship between Remuneration Policy and Company Performance
Performance based remuneration aims to align remuneration with the Company’s performance and attainment
of strategic objectives. Performance based remuneration may comprise both short term (annual) and long term
(3-4 year) incentives.
Short Term Incentive (‘STI’) Plan
The purpose of this plan is to:
• Drive achievement of the stated objectives of Sundance and its subsidiaries;
• Drive a culture of “delivering outputs” as a team and also as an individual;
• Motivate employees to contribute to the best of their capabilities by recognising and rewarding high individual and
group contributions towards the organisation’s objectives via a mix of individual and corporate objectives, and;
• To attract and retain the right people.
The maximum remuneration opportunity provided by the STI plan is based on a percentage of annual salary and
is pre-determined.
The level of STI ultimately paid is determined based on meeting both corporate and individual objectives against
the pre-determined KPIs, comprising both financial and non-financial indicators.
The Company assesses the achievement of both Company and individual KPIs on a calendar year basis
(January to December). Corporate achievements are assessed by the NRC and submitted for Board approval.
Individual performance is determined during the annual performance appraisal process. All these measures are
taken into account when determining the amount, if any, to be paid to KMP as a short term incentive. Short term
incentives are only used when they support and are consistent with the Company’s long term goals.
Corporate objectives for the current 2014 calendar year were drawn from areas which focus on satisfying
conditions precedent to facilitate project funding including:
• In Country approvals;
• Offtake agreements;
• Project contracts; and
• Project equity.
We aim to achieve these objectives whilst ensuring health, safety, environment, community and security
(‘HSECS’) performance achieves world class levels. The Board regards the above categories as fundamental to
the achievement of the Sundance vision.
Long Term Incentive (‘LTI’) Plan
The purpose of the LTI plan is to provide an appropriate incentive to eligible persons to deliver the medium and
longer term development and success of the Company, and to align the interests of KMP with the interests of
shareholders. It also aims at attracting and retaining key employees, including executive KMP.
Long Term Incentives are available by invitation to senior, or specifically targeted, staff and consultants/
contractors where there is a clear intention of long term engagement with the Company.
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2014
12. Remuneration Report (continued)
12.3 Remuneration Policy (continued)