IGO Interactive Annual Report 2018

DIRECTORS’ REPORT—REMUNERATION REPORT 30 JUNE 2018 SECTION 3. KMP REMUNERATION COMPONENTS OF EXECUTIVE REMUNERATION AT IGO Executive remuneration at IGO is comprised of fixed and at risk components, as an integrated package, the purpose of which is to align executive reward with shareholder outcomes, executive performance and the retention of key talent. TFR and at risk remuneration is benchmarked annually by the People & Performance Committee. The table below provides an overview of the different remuneration components within the IGO framework. OBJECTIVE Attract and retain the best talent Performance related remuneration (at risk) Reward current year performance Reward long-term sustainable performance REMUNERATION COMPONENT Total Fixed Remuneration (TFR) – includes salary and superannuation Short-term incentive (STI) – paid as cash and service rights Long-term incentive (LTI) – paid as performance rights PURPOSE TFR provides competitive ‘guaranteed’ remuneration with reference to; • size and complexity of the role • individual responsibilities and performance; and • experience and skills The STI ensures appropriate differentiation of pay for performance, for achievement of a combination of Company and Individual KPIs to drive achievement of near-term strategic objectives and retention. The LTI is focused on the achievement of mid to long‑term shareholder return through the Company’s long‑term strategic objectives and retention. IGO ANNUAL REPORT 2018— 49