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Whitehaven Coal Limited : Annual Report 2008
Whitehaven Coal Limited - Annual Report 2008 Short-term incentive bonus Each year, the Managing Director assesses the performance of senior executives and may recommend the payment of a short term incentive bonus to the Board for approval. Long-term incentive The objective of LTI compensation is to reward and retain key management personnel in a manner which aligns this element of compensation with the creation of shareholder wealth. As such LTI grants are made to employees who are able to influence the generation of shareholder wealth and therefore have a direct impact on the Company’s performance. LTI grants to executives are delivered in the form of options. Other benefits Other benefits include motor vehicles and some minor benefits. Employment contracts It is the consolidated entity’s policy that service contracts are entered into with key management personnel. These contracts vary in term but are capable of termination by the consolidated entity at short notice should the specified executive commit any serious breach of any of the provisions of their agreement or is guilty of any grave misconduct or wilful neglect in the discharge of their duties. Rob Stewart, Managing Director has a contract of employment that is unlimited in term but capable of termination by the Company other than for misconduct with 5 weeks notice or by the executive with 5 weeks notice. The contract includes provision for a termination benefit to be paid upon redundancy of six months salary excluding superannuation. Leigh Whitton, Chief Financial Officer and Joint Company Secretary has accepted a redundancy package and will not relocate when the Company moves its head office from Brisbane to Sydney at the end of March 2009. At that time he will be compensated with three weeks payment for each year of service and a retention bonus equal to six months salary. Casper Dieben, General Manager Open Cut Operations has a contract of employment that is dated 30 April 2007. The contract is for a three year term and can be terminated by the Company other than for misconduct by payment of the outstanding contract balance. Non-executive directors The constitution of the Company provides that the Directors may be paid, as remuneration for their services as Directors, a sum determined from time to time by the Company’s shareholders in general meeting, with that sum to be divided amongst the Directors in such manner and proportion as they agree. The maximum aggregate amount which was approved by Shareholders for fees to the Directors is $500,000 per annum. An amount of $446,900 was paid during the year ended 30 June 2008. Remuneration provided to Executive Directors may be in addition to the sum approved by Shareholders. With the exception of shares and options granted to entities related to Andy Plummer and Tony Haggarty under the terms of the Equity Participation and Option Deed in the 2007 financial year (refer section 7.2), non-executive directors do not receive equity instruments. 21
Annual Report 2009