IGO Interactive Annual Report 2018

DIRECTORS’ REPORT—REMUNERATION REPORT 30 JUNE 2018 SECTION 1. 2018 OVERVIEW AND DEVELOPMENTS FY18 has been an important year for the Company with the first full year of production at Nova, the divestment of Stockman and Jaguar, the transition of the Long Operation into care and maintenance and the expansion of our footprint and activities in the Fraser Range and Northern Territory. The achievement of these results has required a significant investment in our people, to build the capability of our teams and to invest in additional individual capacity across the business. FY18 was also the second full year since the implementation of the Company’s Total Rewards Philosophy. This philosophy recognises that remuneration and reward is not just about the payment of salary, rather a view of benefits that reward and develop our people to create a holistic value proposition. A competitive Employee Value Proposition (EVP) is a growing point of difference for employee attraction and retention. Although remuneration is an important component of the EVP, trending suggests work/life balance and opportunity for development is higher on the list of multi-generational workforces. To this end, along with Company-wide salary benchmarking and the award of a group wide CPI increment (or consideration of) for all roles, the following initiatives were implemented for all employees in FY18: • Improved flexible work options to recognise the importance that the ability to successfully blend work and family commitments has on employee engagement; • Broadening of the Company’s equity offering to all employees with the implementation of a salary sacrifice share plan, including a Company sponsored contribution of up to $2,500 to encourage all employees to share in ownership of the Company and the connection that drives; • Introduction of a Paid Parental Leave program to increase engagement, retention and to facilitate the combination of work and family responsibilities; • Further consultative work on operational rosters to ensure the Company maximises operational productivity and individual employee flexibility; and • Strengthening and extending of the Company-wide investment in learning, development and training. At a Board and Executive level, the following changes were made: • the Chief Growth Officer was appointed as Chief Operating Officer effective 1 February 2018; • Andrew Eddowes, Head of Corporate Development and Ian Sandl, General Manager Exploration, were appointed to the Executive Committee effective 1 February 2018; • increases in total fixed remuneration (TFR) for KMPs in line with market benchmarking to ensure that Executive fixed remuneration remained competitive within the comparator and broader industry groups for similar roles; and • an increase in LTI award for the Managing Director from 70% to 110%. Similarly, for the Chief Operating Officer and Chief Financial Officer roles, the LTI component was increased from 40% to 80% of TFR. No changes were made to: • the TFR of the Managing Director; • Chairman and Non-executive director remuneration (for the third year in a row); and • the STI component of KMP remuneration. IGO ANNUAL REPORT 2018— 47