Icon Energy Limited Annual Report 2017

The Directors of Icon Energy Limited present this Remuneration Report for the consolidated entity for the year ended 30 June 2017. The information provided in this report has been audited as required by the Corporations Act 2001 (Cth) and forms part of the Directors’ Report. This Remuneration Report sets out remuneration information for Icon Energy’s Key Management Personnel ( KMPs ) including the following persons who were Non-Executive Directors and senior executives during the financial year: Table 1: Icon Energy’s Key Management Personnel Name Position Held Non-Executive Directors Stephen Barry Chairman Dr Keith Hilless Director Howard Lu Director Derek Murphy Director Executive and Senior Managers Ray James Managing Director Dr Kevin Jih Executive Director, Chief Financial Officer & Company Secretary Martin Berry Exploration Manager 1. REMUNERATION FRAMEWORK The Company’s Remuneration framework is designed to ensure that: − Executive and Senior Managers receive competitive and reasonable market based levels of base remuneration; − Employees and Executive and Senior Managers who perform well have the opportunity to be rewarded through an annual short term incentive plan; − Long term incentives are aligned to the achievement of strategic objectives and creation of value for shareholders. 2. ROLE OF THE REMUNERATION, NOMINATIONS AND SUCCESSION COMMITTEE The Remuneration, Nominations and Succession Committee is responsible for making recommendations to the Board on remuneration policies. The Committee, where necessary, obtains independent advice on the remuneration packages offered to potential employees. The Company’s broad remuneration policy ensures that each remuneration package is properly aligned to the person’s duties and responsibilities and that remuneration is competitive in attracting, retaining and motivating people of the highest quality. The Company has structured an executive remuneration framework that is competitive and complementary to the reward strategy of the organisation. The Remuneration, Nominations and Succession Committee Charter sets out the Board's policy for the nomination and appointment of directors and the process for the evaluation of the performance of senior executives. The performance of the Managing Director is evaluated by the Committee on an annual basis in July in accordance with the procedures set out in the Committee’s Charter. The Corporate Governance Statement provides further information on the role of the Committee. The Committee also reviews and approves the outcomes for the Managing Director’s direct reports on the recommendation of the Managing Director and reviews incentive programs and employment terms offered to the wider group. REMUNERATION REPORT – AUDITED for the year ended 30 June 2017 KEY POINTS − No short-term incentives or long-term incentives were issued by Icon for the 2016-2017 financial year. − Remuneration framework is structured to reward executives for achievement of goals that add shareholder value − Short and long term incentives only vest on achievement of corporate and individual performance goals − Long term incentives will not vest unless the share price achieves and maintains a price of 45 cents − Executive salary increases for 2016-2017 are restricted to CPI increases − No increase in fees for Non-Executive Directors FINANCIAL REPORT 28 ICON ENERGY ANNUAL REPORT 2017