Bradken Limited Annual Report 2015 - page 46

11 l BRADKEN LIMITED ANNUAL REPORT 2015
DIRECTORS’ REPORT
Bradken Limited
Directors' report (continued)
30 June 2015
C. Remuneration report (continued)
(b)
Principles used to determine the nature and amount of remuneration (continued)
(ii) At risk short-term salary
(iii) Long-term incentives - Performance Rights Plan
(c)
Key management personnel remuneration disclosure
For all other key personnel the long term incentive (LTI) is paid wholly on Earnings Per Share (EPS) performance over a 3 year
period. The initial rights for these personnel are provided based on a range of 20% to 30% of the key personnel’s total cash base
remuneration depending on the position held. No rights vest to the key personnel if Bradken's EPS growth over a 3 year period is
below 5% and no re-testing occurs.
Kevin McDermed -
Chief Operating Officer Engineered Products
The long-term incentive (LTI) for executives is paid wholly on relative total shareholder return (TSR) performance over a 3 year
period. The initial rights are provided based on a set range of 30% to 50% of the executive's total cash base remuneration
depending on the position held by the executive. No rights vest to the executive if Bradken's TSR over a 3 year period is below
50% of the ASX Small Ordinaries Index and no re-testing occurs.
The at risk short-term salary is paid wholly on actual improvement in profitability. The value of the at risk short-term salary
payable is set within a range of 30% to 60% of the executive's total cash base remuneration depending on the position held by
the executive. In calculating the at risk short-term salary the growth in year on year NPAT is calculated and where applicable the
EBITDA of the executive's business. To achieve the full at risk short-term salary value a growth of 15% on the previous year
profitability must be achieved.
Enda Sheridan -
General Manager Corporate Development
Andrew Allen -
General Manager Operations
At the end of the financial year an assessment is made of the actual performance of the Group, the relevant business unit and
the individual targets set at the beginning of the financial year. A percentage of the at risk short-term salary is awarded
depending on performance. At risk short-term salary is not awarded where there is no year on year growth for the financial year.
The key management personnel of Bradken Limited and the Group are the directors of Bradken Limited (see page 2), the Chief
Financial Officer and the General Managers and Chief Operating Officer of the Bradken business units who report directly to the
Managing Director. The executives are:
The Human Resources Committee recommends the at risk short-term salary to be paid to the Managing Director for approval by
the Board. For other senior executives the Managing Director recommends the at risk short-term salary to be paid, and seeks
approval from the Human Resources Committee.
Steven Perry -
CFO and Company Secretary
The values in column (A) of each table below are remuneration as defined in Australian Accounting Standard AASB2
Share-
based payment
. This consists of share rights. These values are calculated based on a Monte Carlo Simulation Method
valuation of the rights in the year in which they are granted and are amortised over the performance period to which they relate,
which is typically a 3 year period. The degree to which performance conditions will be met is unclear until the end of the relevant
performance periods. There is no certainty performance conditions will be met and there is therefore no direct correlation of
these values to the remuneration received by the executive in any period.
The values in column (B) of each table shows the value of the rights that were granted to the executive for the performance
periods 1 July 2012 to 30 June 2015 (2015) and 1 July 2011 to 30 June 2014 (2014).
For the performance period 1 July 2012 to 30 June 2015 the performance conditions were not met and no rights are eligible to
vest for that period.
Stephen Cantwell - Executive
General Manager Mineral Processing
Brad Ward -
Executive General Manager Mining & Transport
The Group's long-term incentive, the Performance Rights Plan, focuses on rewarding for long-term growth and the retention of
key people. Information on the Performance Rights Plan is set out on page 14.
Details of the remuneration of the directors and the key management personnel (as defined in AASB 124 Related Party
Disclosures) of Bradken Limited and the Group are set out in the following tables.
Craig Lee -
General Manager Fixed Plant
1...,36,37,38,39,40,41,42,43,44,45 47,48,49,50,51,52,53,54,55,56,...131
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