IGO Interactive Annual Report 2018

DIRECTORS’ REPORT—REMUNERATION REPORT 30 JUNE 2018 LETTER FROM CHAIR OF PEOPLE & PERFORMANCE COMMITTEE DEAR SHAREHOLDER On behalf of the People & Performance Committee, I am pleased to share with you our FY18 Remuneration Report. During 2018, we have seen upward pressure on remuneration, as the resource sector’s activities and competition for skilled people have increased. Consistent with IGO’s Total Rewards Philosophy, which is in its second year since implementation, the Company’s remuneration response has been holistic, considering not only salary but also issues such as work/life balance and opportunity for development. Many improvements have been achieved, such as more flexible work options, broadening of the Company’s equity offering to all employees, introducing a paid parental leave program, improving operational rosters and strengthening and extending the Company wide investment in learning, development and training. This year, changes have also been made to the Remuneration Report in order to enhance the visibility of the connection between Executive remuneration and the creation of shareholder value. SHORT TERM INCENTIVE FOR FY18 This was a significant year for IGO with the first full year of production at Nova, the transition of the Long Operation into care and maintenance and the expansion of the Company’s footprint and activities in the Fraser Range and Northern Territory. A demanding set of Short Term Incentive performance measures were set by the Board to reflect this as follows: 1. Production and Financial – delivering strong capital expenditure, operating expenditure and production performance from the Company’s operated assets, particularly at Nova in its first full year of production. 2. Reserves Growth – growing the Company’s reserves base (excluding Tropicana) net of depletion due to mining. This is a relevant measure, given the significant tonnes extracted from Nova. 3. Growth – delivering a suite of strategic growth initiatives that support the Company’s overall strategy. As with the Reserves Growth metric, this is important to growing shareholder value. 4. People and Culture – improvement across a suite of objectives that create a motivated and highly- engaged workforce. This includes specific targets for increasing diversity and shaping culture. 5. Health, Safety and Environmental performance – delivering sustained, improved HS&E performance across all facets of the business. This metric goes directly to efficiently and effectively managing the risks inherent in all the Company’s operations. Further details on how the above performance measures were delivered as well as details of the long- term incentive program can be found in the Remuneration Report. EXECUTIVE REMUNERATION AND REWARD REVIEW In FY19, a significant review is planned of both the fixed and “at risk” remuneration structures in preparation for the next three-year cycle. The goal is to ensure that the Company remains a competitive employer of choice, where Executive remuneration remains closely linked to a common effort that drives our achievement of strategic objectives and maximises the alignment of remuneration with the interests of shareholders for the period. I trust that shareholders will find the 2018 report clearly explains our current remuneration philosophy and Executive outcomes for the period and welcome your feedback in our endeavour to provide ongoing clarity and transparency. KEITH SPENCE CHAIR – PEOPLE & PERFORMANCE COMMITTEE IGO ANNUAL REPORT 2018— 45