Page 56 - Sundance Resources Ltd Annual Report 2013

54 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013
Performance Based (at Risk) Remuneration
In addition to fixed remuneration employees may be entitled to performance based remuneration which is paid to
reward achievement of corporate and individual objectives. The level at which performance based remuneration
is set is based on independent market surveys and analysis supported by information gathered from a number of
consulting organisations about other ASX listed entities of similar size in the mining industry.
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 Nomination and Remuneration Committee seeks and considers advice
from independent remuneration consultants. Remuneration consultants are engaged by and report directly to the
Remuneration Committee.
The Committee did not engage the services of external remuneration consultants during the 2012/2013 reporting
period.
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 base salary
and is pre-determined. The maximum pre-determined percentage of base salary and the percentage attributed to
corporate and individual objectives for Key Management Personnel are shown below.
Maximum potential
of base salary
Portion attributed to
Corporate objectives
Portion attributed to
Individual objectives
Managing Director & CEO 25% 80% 20%
Other Key Management Personnel 20% 70% 30%
The level of STI ultimately paid is determined based on meeting both corporate and individual objectives against
the pre-determined Key Performance Indicators (‘KPI’), comprising both financial and non-financial indicators.
The Company assesses the achievement of both Company and individual KPI’s 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 Key Management Personnel 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 and individual objectives for the 2013 calendar year were drawn from the following categories:
• In Country Project Approvals;
• Partnerships;
directors’ report (continued)
FOR THE YEAR ENDED 30 JUNE 2013
12. REMUNERATION REPORT OVERVIEW (continued)
12.3 Remuneration Policy (continued)