IGO Interactive Annual Report 2018

DIRECTORS’ REPORT—REMUNERATION REPORT 30 JUNE 2018 SECTION 6. STATUTORY REMUNERATION DISCLOSURES EXECUTIVE CONTRACTS Remuneration and other terms of employment for the Executives are formalised in service agreements. The service agreements specify the components of remuneration, benefits and notice periods. Participation in the STI and LTI plans is subject to the Board’s discretion. Other major provisions of the agreements relating to remuneration are set out below. Name Position Term of agreement TFR at 1 July 2018 $ Value Notice period Termination Benefit Peter Bradford Managing Director/CEO No fixed term 860,000 6 months 6 months 1 Keith Ashby Head of Governance and Risk No fixed term 360,000 3 months 6 months Matt Dusci Chief Operating Officer No fixed term 530,000 3 months 6 months Andrew Eddowes Head of Corporate Development No fixed term 370,000 3 months 6 months Sam Retallack Head of People and Culture No fixed term 360,000 3 months 6 months Ian Sandl General Manager Exploration No fixed term 370,000 3 months 6 months Scott Steinkrug Chief Financial Officer No fixed term 450,000 3 months 6 months 1. In addition to the above, Mr. Bradford is entitled to a maximum termination benefit payable of up to 12 months of average annual base salary should the Company terminate the employment contract without cause, but only if such payment would not breach ASX Listing Rules. A termination benefit of three months remuneration is payable to Mr. Bradford should the Company terminate the employment contract due to illness, injury or incapacity. (I) REMUNERATION EXPENSES FOR EXECUTIVE KMP The following table shows the value of earnings realised by executive KMP during FY18. The cash value of earnings realised includes cash salary, superannuation and cash bonuses earned during the year and the intrinsic value of service rights and LTI vesting during the financial year. This is in addition and different to the disclosures required by the Corporations Act and Accounting Standards, particularly in relation to share rights. As a general principle, the Accounting Standards require a value to be placed on share rights based on probabilistic calculations at the time of grant, which may be reflected in the Remuneration Report even if ultimately the share rights do not vest because performance and service hurdles are not met. By contrast, this table discloses the intrinsic value of share rights, which represents only those share rights which actually vest and result in shares issued to a KMP. The intrinsic value is the Company’s closing share price on the date of vesting. Remuneration earned during the period Name TFR $ 1 STI Cash Component $ Value 2 STI Vested Service Rights Component $ Value LTI Vested Share Rights Component $ Value Total Actual Remuneration Peter Bradford 800,000 182,000 - - 982,000 Keith Ashby 350,000 39,078 - - 389,078 Rob Dennis 3 416,667 - 99,488 516,155 Matt Dusci 500,000 79,750 - - 579,750 Andrew Eddowes 4 152,150 41,154 - - 193,304 Sam Retallack 350,000 38,343 - - 388,343 Ian Sandl 5 152,500 34,830 - - 187,330 Scott Steinkrug 450,000 70,425 - - 520,425 1. Includes base salary and superannuation. 2. Represents the amounts to be paid in September 2018 for performance in FY18. 3. Mr. Dennis resigned from the Company effective 30 April 2018. The Board approved the vesting of his outstanding service rights, these were issued on 18 May 2018 at a market price of $4.85. 4. Mr. Eddowes was appointed to the Executive Committee on 1 February 2018. Realised earnings include amounts from this date. 5. Mr. Sandl commenced employment with the Company on 4 September 2017 and his STI is a pro-rata entitlement. He was appointed to the Executive Committee on 1 February 2018 and realised earnings include amounts from that date. 58 — IGO ANNUAL REPORT 2018