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2. Remuneration policy on executive director remuneration

The Company’s remuneration policy is formulated to attract and retain high-calibre executives and to motivate them to develop and implement the Company’s business strategy in order to optimise long-term shareholder value creation. It is the intention that this policy will continue to apply for 2009 and subsequent years, subject to ongoing review as appropriate. The policy is framed around the following key principles:

  • total rewards will be set at levels that are sufficiently competitive to enable the recruitment and retention of high-calibre executives;
  • total incentive-based rewards will be earned through the achievement of demanding performance conditions consistent with shareholder interests;
  • incentive plans, performance measures and targets will be structured to operate soundly throughout the business cycle;
  • the design of long-term incentives will be prudent and will not expose shareholders to unreasonable financial risk;
  • in considering the market positioning of reward elements, account will be taken of the performance of the Company and of the individual executive director; and
  • reward practice will conform to best practice standards as far as reasonably practicable.

Representatives of the Company’s principal investors are consulted on changes to remuneration policy.