For the year ended 30 June 2006
21. DIRECTORS’ AND EXECUTIVES’ REMUNERATION
a) Names and positions held of parent entity directors and specified executives in office at any time during the
financial year are:
Directors
Executives
b) Remuneration of parent entity directors
2006
2005
During the year ended 30 June 2003 the company issued Drysdale Investments Ltd a company associated with Mr Andrew Kent, 9,000,000 fully paid ordinary shares and 9,000,000 10c share options in lieu of the payment of director’s fees to Mr Kent for the period of 30 April 2000 to 30 April 2005. The 9,000,000 10c share options expired on 30 June 2005.
On 9 December 2004 the company issued M&P Services Pty Ltd, a company associated with Mr John Stark, 480,000 fully paid ordinary shares in lieu of the payment of director’s fees to Mr Stark for the period of 2 April 2004 to 2 April 2005.
c) Remuneration of specified executives
Executives’ emoluments
2006
2005
d) Remuneration Options
Options issued as part of remuneration for the year ended 30 June 2006
Options granted as part of directors’ and executives’ remuneration have been valued using a Black Scholes pricing model applying the following formula:
Included under employee benefits expense in the income statement for the year ended 30 June 2006 is $14,824 in relation to shares (options) based payments.
e) Options and Rights holdings held by directors and executives
f) Number of shares held by directors and executives
g) Remuneration practices
The board is responsible for determining the remuneration policies and packages applicable to the board members and senior executives of the company. The broad remuneration policy is to ensure that the remuneration package properly reflects the person’s duties, responsibilities, level of performance and that the remuneration is competitive in attracting, retaining and motivating people of the highest quality.
The policy is to renumerate non-executive directors at market rates for comparable companies for time, commitment and responsibilities. The directors and executives receive a superannuation guarantee contribution required by the government, which is currently 9%, and do not receive any other retirement benefits.
As part of each executive’s remuneration there is a performance based component consisting of key performance indicators (KPI’s). The KPI’s are set annually and cover financial, management and strategic and corporate items. The intention of this policy is to facilitate goal congruence between executives with that of the business and shareholders. The board may, however, exercise its discretion in relation to approving incentives, bonuses and options. To align directors and executives interests with shareholder interests, the directors and executives are encouraged to hold shares in the company.
21. DIRECTORS’ AND EXECUTIVES’ REMUNERATION
a) Names and positions held of parent entity directors and specified executives in office at any time during the
financial year are:
Directors
| Mr A Kent | Chairman / Managing Director |
| Mr L Cross | Non -Executive Director |
| Mr J Stark | Non -Executive Director |
Executives
| Mr C O’Brien | Chief Executive Officer |
| Mr R Hardwick | Company Secretary |
| Mr C Bond | Chief Operating Officer |
b) Remuneration of parent entity directors
2006
2005
During the year ended 30 June 2003 the company issued Drysdale Investments Ltd a company associated with Mr Andrew Kent, 9,000,000 fully paid ordinary shares and 9,000,000 10c share options in lieu of the payment of director’s fees to Mr Kent for the period of 30 April 2000 to 30 April 2005. The 9,000,000 10c share options expired on 30 June 2005.
On 9 December 2004 the company issued M&P Services Pty Ltd, a company associated with Mr John Stark, 480,000 fully paid ordinary shares in lieu of the payment of director’s fees to Mr Stark for the period of 2 April 2004 to 2 April 2005.
c) Remuneration of specified executives
Executives’ emoluments
2006
2005
d) Remuneration Options
Options issued as part of remuneration for the year ended 30 June 2006
Options granted as part of directors’ and executives’ remuneration have been valued using a Black Scholes pricing model applying the following formula:
| Exercise (Strike price) | 22.5c |
| Life of the option |
3 – 5 years |
| Underlying share price @ grant date |
9c |
| Expected share price volatility | 30.0% |
| Risk free interest rate |
5.24% |
Included under employee benefits expense in the income statement for the year ended 30 June 2006 is $14,824 in relation to shares (options) based payments.
e) Options and Rights holdings held by directors and executives
f) Number of shares held by directors and executives
g) Remuneration practices
The board is responsible for determining the remuneration policies and packages applicable to the board members and senior executives of the company. The broad remuneration policy is to ensure that the remuneration package properly reflects the person’s duties, responsibilities, level of performance and that the remuneration is competitive in attracting, retaining and motivating people of the highest quality.
The policy is to renumerate non-executive directors at market rates for comparable companies for time, commitment and responsibilities. The directors and executives receive a superannuation guarantee contribution required by the government, which is currently 9%, and do not receive any other retirement benefits.
As part of each executive’s remuneration there is a performance based component consisting of key performance indicators (KPI’s). The KPI’s are set annually and cover financial, management and strategic and corporate items. The intention of this policy is to facilitate goal congruence between executives with that of the business and shareholders. The board may, however, exercise its discretion in relation to approving incentives, bonuses and options. To align directors and executives interests with shareholder interests, the directors and executives are encouraged to hold shares in the company.