Page 57 - Sundance Resources Ltd Annual Report 2013

SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2013 55
directors’ report (continued)
FOR THE YEAR ENDED 30 JUNE 2013
12. REMUNERATION REPORT OVERVIEW (continued)
12.4 Relationship between Remuneration Policy
and Company Performance (continued)
• Asset and tenement maintenance;
• Project activities and progress;
• Health, Safety, Environment, Community and Security; and
• Company cash position
The Board regards the above categories as fundamental to the achievement of the stated goals of Sundance.
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 Key Management
Personnel with the interests of shareholders. It also aims at attracting and retaining key employees, including
Key Management Personnel.
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.
Eligible persons, including Key Management Personnel, are granted performance rights to a specified dollar value
at the beginning of each LTI plan grant period. The remuneration opportunity provided by the LTI plan is based on a
percentage of the annual base salary at the time of the grant; ranging between 20% and 40%. Rights are issued at
the Volume Weighted Average Price (‘VWAP’) over the last thirty days leading up to January 1 of the issue year.
Under the Plan, participants are granted performance rights which only vest if certain performance conditions
are met and they are employed by the Company at the measurement date.
Each Performance condition is chosen to correlate directly to the Company’s medium and longer term interests and
success of the Project, the Company, and shareholders’ best interests. Performance conditions typically spread over
a 4-year period. These performance conditions are then submitted to the Board for consideration and approval.
Performance conditions are set with quantifiable and measurable outcomes, which can then be objectively assessed
against supporting information and evidence of achievement. Progress toward, and achievement of, performance
conditions is assessed by the MD/CEO and reviewed by the Nomination and Remuneration Committee. The Board
will then determine the level of achievement for each performance condition, seeking information where needed
from the Nomination and Remuneration Committee, the Executive Committee, other Managers or sources.
The 2013 LTI plan performance conditions are derived from the following performance areas:
• Achieving funding (equity and debt) commitment for Stage 1 of the Project;
• Delivery of Total Shareholder Returns (‘TSR’) over a three or four year period; and
• Increasing the Net Present Value (‘NPV’) of the Project.
The tables below set out summary information about the Consolidated Entity’s earnings and movements in
shareholder wealth for the five years to 30 June 2013.
30 June 2013
$
30 June 2012
$
30 June 2011
$
30 June 2010
$
30 June 2009
$
Revenue 1,771,966 2,539,818 2,888,359 2,530,200 1,474,177
Net loss before tax (31,641,559) (25,308,131) (21,738,100) (10,754,551) (14,313,262)
Net loss after tax (31,641,559) (25,308,131) (21,738,100) (10,754,551) (14,313,262)