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Whitehaven Coal Limited : Annual Report 2012
Whitehaven Coal Limited -- Annual Report 2012 51 7.4.2 Components of remuneration for FY2012 Fixed remuneration Fixed remuneration comprised base salary (calculated on a total cost basis and inclusive of any fringe benefits taxes charges related to employee benefits including motor vehicles), as well as employer contributions to superannuation funds, and was subject to approval by the Remuneration Committee. Short term incentives The table below summarises the previous approach to STI for senior executives that applied during FY2012. As explained earlier, the Company has now implemented new STI arrangements, which took effect from 1 May 2012. Who participated? All salaried employees, including the Executive Directors and other senior executives What was the STI award? Senior executives' target STI was 25% of fixed remuneration. For FY2012, the STI award was assessed at 80% of the target award, and was then prorated based on the shortened performance period (see below). This resulted in an actual STI award that was equal to 66.67% of the target STI award (i.e. 16.67% of fixed remuneration for each of the senior executives). The balance of the STI award opportunity lapsed. What was the performance period? The performance period was intended to be 1 July 2011 to 30 June 2012. However, in light of the Merger, the actual performance period was 1 July 2011 to 30 April 2012. The shortened performance period was considered appropriate so that all employees of the merged entity could start on the same remuneration arrangements (including a new STI plan) as of 1 May 2012. As noted above, actual STI awards were prorated in recognition of the shortened performance period. What were the performance conditions? Usually, payment of the STI is dependent on the Managing Director assessing the performance of the relevant senior executive and recommending the payment of an STI bonus to the Board for approval. However, for FY2012, the STI amount paid to executives upon the Merger was determined based on Group performance to the date of the merger (with all senior executives receiving the same proportion of their target STI opportunity). There were a number of significant achievements during the period from 1 July to 31 March 2012 which influenced the determination, including the increase in the Company's sales of produced coal by 7%, the increase in both ROM coal and saleable coal production by 9%, and the implementation of several key projects, in addition to the management time and effort required in connection with the Merger. How was the STI delivered? The STI was paid in cash following the Merger on 15 May 2012, with the exception of Mr Haggarty and Mr Plummer who were paid on 10 September 2012.
Annual Report 2011
Annual Report 2013