Financial Report Template Page 18
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80DIRECTORS’ REPORT
(CONT)
REMUNERATION POLICY
The current executive remuneration framework has two
components, base remuneration and benefits including
The Remuneration Report sets out remuneration information for
superannuation. A short term incentive scheme has now
Shine Corporate Limited’s non-executive Directors, executive
been introduced, effective from 1 July 2014.
Directors and other Key Management Personnel of the Group.
Fixed Remuneration and Benefits
ROLE OF THE REMUNERATION COMMITTEE
Base remuneration and benefits are structured as a total
employment cost package, which may be delivered as a
The Remuneration Committee is a committee of the
combination of cash and prescribed non-financial benefits.
Board. The role of the Remuneration Committee is to
advise on remuneration and issues relevant to remuneration
Executives are offered a competitive base remuneration package
policies and practices, including for senior executives and
that comprises the fixed component of remuneration and
Non-executive Directors.
rewards. Base remuneration is reviewed annually, to ensure the
executive’s remuneration is competitive with the market. There
Shine Corporate Limited’s Corporate Governance Statement
is no guaranteed base remuneration increase included in any
provides further information on the role of this committee.
executive’s contract.
The Group has not used a remuneration consultant during
Executives receive benefits which may include motor vehicle
the year.
benefits.
PRINCIPLES USED TO DETERMINE THE NATURE
Superannuation contributions are paid in accordance with
AND AMOUNT OF REMUNERATION
relevant government legislation, to employee nominated defined
contribution superannuation funds.
Non-executive Directors
Short Term Incentives
Fees and payments to Non-executive Directors reflect the
demands which are made on, and the responsibilities of, the
A short term incentive plan has been approved and commenced
Directors. Non-executive Directors’ fees and payments are
on 1 July 2014. KMPs short term incentives provide for an
reviewed annually by the Board. The Chair’s fees are determined
incentive of up to 50% of total financial remuneration, subject to
independently to the fees of the Non-executive Directors.
the achievement of agreed key performance indicators. These
The Chair is not present at any discussions relating to the
key performance indicators are being finalised and will apply
determination of his own remuneration.
from 1 July 2015.
Non-executive Directors’ fees are determined within an
Long Term Incentives
aggregate directors’ fee pool limit, which is periodically
The Remuneration Committee of the Board is investigating a
recommended for approval by shareholders. The maximum
long term incentive plan for key management personnel and
amount currently stands at $500,000, which was approved
senior executives. The CEO’s contract provides for a long term
on 22 October 2014.
incentive of 50% of total financial remuneration, with a
Non-executive Directors do not receive any performance-based
commencement date of 1 July 2015, subject to the achievement
remuneration. All remuneration is fixed and there are no
of agreed hurdles. These hurdles are being finalised and will
additional fees for being a member of a committee.
apply from 1 July 2015.
Directors’ Fees
Performance and Share Rights
The current base fees were last reviewed on 25 June 2015 and it
The CEO’s contract provides for 100,000 performance rights
was agreed that no increase was to be made.
payable on the second anniversary of employment, being
Executive Remuneration Framework
23 March 2017 and calculated as: 100,000 x (share price on
The objective of the Group’s executive reward framework
the 23 Mar 17 minus share price on 13 February 15).
is to ensure reward for performance, and is competitive and
The CEO’s contract also provides for issuance of shares on
appropriate for the results delivered. The framework aligns
23 Mar 17 with the number of shares issued calculated as:
executive reward with achievement of strategic objectives and
$100,000 / share price on 13 Feb 15).
the creation of value for shareholders, and conforms with market
practice for delivery of reward.
Company performance
The Group’s executive remuneration framework is considered
For the year to 30 June 2015 there was no link between
to be market competitive and complementary to the reward
company performance and executive remuneration. In the year
strategy of the organisation. The key elements of the framework
to 30 June 2015, earnings per share were 17.23 cents, dividends
are as follows:
paid per share were 3.75 cents (2014: 3.5 cents). Shares in the
company closed on 30 June 2015 at $2.46 (2014: $2.45).
• to attract and retain high calibre executives;
• reward capability and expertise;
• reflect competitive reward for contribution to growth in
shareholder wealth;
• provide a clear structure for earning rewards; and
• provide recognition for individual and team contributions.
SHINE CORPORATE LTD | FINANCIAL REPORT | 2015
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